Is the Tron crypto network the canary in the coal mine for the altcoin market’s next move? Recent activity on the network may offer insights into where the market is headed.
The crypto market sentiment improved considerably this week and Tron network was on the frontline of that improvement.
The network experienced a surge in daily deposit transactions in the last 4 weeks.
Robust USDT deposits into Tron net confirmed that smart money has been pushing into position. This outcome also underscored its growing role among exchanges.
Rising liquidity in the network signaled that depositors were readying for higher trading activity. An observation contrary to what one would expect in a market downturn.
Tron’s USDT deposits also kicked off September with a bit of an uptick. This confirmed an extension of the deposit momentum observed in August remained active.
Smart Money Rises on Tron Crypto Network
Recent reports revealed that whales were heavily involved in recent USDT inflows into the Tron crypto network. Whale addresses with over $100 million registered a surge in transfer activity at the start of this week.
Whale addresses in the $100 million-plus category moved about $3.8 billion on Tuesday which marked a multi-month high.
Research revealed that the recent whale activity was similar to the level of whale activity observed in June.
The recent whale activity was an important observation considering the recent slowdown in the market.
There was speculation that the bull-run may have run its course. However, this latest wave of stablecoin flows, especially within the whale cohort may indicate that whales were preparing for another demand wave.
If the smart money was indeed preparing for another bullish wave, then Tron was in position to benefit. Its native coin TRX might be on track for another bullish wave.
TRX Price Action Recap
TRX price maintained an overall bullish trend this year, with limited pullbacks. The coin maintained the same trend with the recent pullback.
It encountered resistance near the $0.37 price level, after which it retraced to the $0.33 price level.
TRX ‘s latest pullback appeared to have ran out of momentum, leading to sideways price action. This outcome also reflected the state of spot flows in the last week or so.
TRX price experienced a robust wave of outflows in the last week of August. However, spot outflows have since cooled down, paving the way for some accumulation.
TRX latest price action underscored a chance for the bulls to reclaim dominance. The observation that whales have been using Tron as their liquidity playground may lend credence to bullish expectations.
However, this did not necessarily eliminate downside risks in case sentiment deteriorates further. The Tron network had another major catalyst behind its recent liquidity surge.
The U.S government revealed that Tron joined the list of blockchain networks that will aid in its new blockchain endeavors.
The U.S government recently revealed plans to start publishing GDP data on-chain. This was in response to previous reports of manipulated economic data.
Trump’s administration recently selected a few blockchains to ensure data immutability. This move marked the first government adoption of its kind, and Tron crypto was picked among the networks to facilitate the endeavor.
There was excitement around the move because other governments may lean towards the same direction.
Moreover, the blockchains involved were validated, and this could boost adoption at the institutional level.