TRX, the native cryptocurrency of the TRON blockchain, has been experiencing a recent surge in revenue, hinting at active participation across the network. This surge in revenue has surpassed other notable chains in the market, including Ethereum, Solana, Bitcoin, and BNB Chain. Despite TRX being on a bearish trajectory lately, with a single-digit drop of 8.62% over the past month and a 24-hour price decline of 1.47%, the decline remains minimal compared to the broader cryptocurrency market.
The strong fundamentals behind TRX’s minimal drop suggest the potential for a price pump in the coming trading sessions. However, selling pressure from the derivatives market may dampen the possibility of a rally. Spot traders have been driving accumulation, keeping TRX stable. The network has generated the most fees among blockchains by a significant margin, attributed to the influx of stablecoins available on its chain, with a stablecoin market cap of $62.27 billion.
Active addresses on the TRON network have hit a record high of 127.5 million, indicating high user engagement. Analysis of exchange netflows shows that spot traders are behind the recent accumulation of TRX, keeping its price stable. In the last 24 hours alone, spot traders purchased 133.43 million TRX, worth approximately $29 million. This strong buying interest could lead to new bullish gains for TRX in the coming week.
On the other hand, derivatives traders have adopted a selling position, limiting TRX’s upside potential. The recent 24-hour decline in TRX’s price was likely driven by derivatives traders selling their positions. The amount of unsettled derivative contracts has dropped notably, accompanied by a decline in trading volume. Open Interest fell by 3.38% to $156 million, indicating that sellers are dominating the Futures market.
The funding rate has also turned negative, with short traders paying a premium periodically. If sellers in the derivatives market continue selling, it could create more opportunities for spot traders to accumulate TRX at a discount before a potential price boom. Overall, the market dynamics suggest a mixed outlook for TRX, with the potential for both a price pump and selling pressure influencing its future price movements.