What is driving Tron's rise and how far could it go?

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  • The use of stablecoins, primarily USDT, drives the currency created by Justin Sun.
  • If it reaches its all-time high, TRX will increase by almost 100% from its current price.

Tron (TRX) is the native cryptocurrency of the network of the same name. Surprisingly, it usually doesn’t contain very many fans who defend him on social networks or influencers who recommend investing in TRX in his YouTube broadcast. And this is surprising because the TRX price trend is bullish.

In the following graph provided by the price monitoring platform CoinMarketCap, you can see the price of TRX over time since 2018. It has indeed experienced strong growth and decline during boom-bust cycles. But note that prices have been continuously increasing since 2020.

What Is Driving Tron'S Rise And How Far Could It Go?

2023 was a great year for TRX. Even some are speculating and “cryptomancy, one might think so This is the beginning of a parabolic movement that will surge into 2024.

And Tron has no shortage of reasons to go higher. The first and foremost is the USDT stablecoin, issued by the Tether company. Although these tokens are issued on many networks, such as Omni, Ethereum, Polygon, Solana, and many others, the main one is Tron.

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It was on March 4, 2019, when CryptoNoticias published an article titled “Three Networks for Tether: USDT Comes to Tron.”. There, it was said:

The disadvantage of the Omni network was that it was never very popular. And Ethereum has become an extremely expensive network since 2020, when decentralized finance (DeFi) came into trend. As a result, the public eager to use the main stablecoin in the market began to use USDT in Tron on a large scale (i.e., as a TRC-20 token).

Soon, exchanges, custody platforms, and almost the entire cryptocurrency industry adapted to offer their users the ability to deposit and withdraw USDT using Tron. And, although USDT latethe r reached many other accounts, the spark of network effect had already became and there was no turning back: Tron becomes the preferred venue for USDT transactions,

The following graph,  provided by the analytics platform on-chain,TheBlock, shows the circwill maintainf USDT in different networks. Tron maintains its dominance through 2022.

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What Is Driving Tron'S Rise And How Far Could It Go?
Tron circulation in each network. Source: TheBlock.

And, in the general stablecoin industry (not just USDT), Tron is also a strong competitor. 37% of the circulation of these currencies maintaining parity with the dollar or other fiat assets is in Tron, as can be seen in the following Diphyllama graph:

Tron not only lives on a tether

In November last year, CryptoNoticias described Tron as “a silent giant with bullish potential for thThe bullxt one” in its weekly column, “Cenless.”Bull market,

it was explained there Tron, in addition to being the main USDT network, is a decentralized finance ecosystem that includes exchanges (DEX), lending protocols, and even non-fungible token (NFT) marketplaces. These platforms never became very popular, but they still have a lot of money sitting around. For example, at the time of this publication, the lending platform JustLend, native to Tron, is the world’s fourth-largest DeFi platform.

What Is Driving Tron'S Rise And How Far Could It Go?

It’s clear that, despite moving forward relatively quietly, Tron is also a major player in the decentralized finance industry. When the bullish cycle “heats up” and more money enters the market, JustLend and other protocols on Tron may surprise with their growth and expansion.

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How high can Tron go?

In the already mentioned “Signals” column from November 2023, several other bullish factors for Tron are mentioned in detail, for example, its burning system that makes it a deflationary financial asset,

The combination of the many factors analyzed does not seem ridiculous to believe TRX could reach a new all-time high price in 2024 or 2025 (Bitcoin may also be hitting new all-time highs after some time).

If this were to happen, TRX would surpass $0.21, which is almost 100% more than its current price of $0.12.

Of course, there is no guarantee that this will happen. Internal and external factors, especially the behavior of Bitcoin’s price, will significantly impact TRX’s performance favorablying months. But If the winds blow favourably, Tron looks poised to break out.

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