As Bitcoin (BTC) Consolidates at $4,000, TRON (TRX) Shoots for the Moon
This weeks epic recovery that saw the cryptocurrency market add $30 billion to its overall value and Bitcoin break $4,000, appears to have finally begun leveling out.
Bitcoin has consolidated above $4,000 and seems to be holding support there, while Ripple (XRP) and Ethereum are holding above $0.35 and $110 respectively. Bitcoin Cash (BCH) was one of the biggest surprise winners of the week, tripling its price from around $75 on December 16th to a high of $228 only five days later. However, the asset has since failed to hold support above $200 and is now trading at around $196.
Tron (TRX), on the otherhand, appears to have joined the party a bit late and is only rallying now. The asset is up 22 percent today while most other assets flounder between 2 to 4 percent gains.
So Why the Late Run?
Since it’s successful migration off of its Ethereum ERC-20 standard token to its own mainnet three month ago, TRX has been benefiting from increased network activity due to a throng of gambling and gaming DApps developed on its blockchain. With a recent injection of $100 million of funding into the upcoming TRON Arcade platform that aims to revolutionize the gaming industry, TRX supporters will certainly have reasons to celebrate this Christmas.
Another factor is likely the recent announcement from crypto exchange giant Binance that it will be adding trading pair support for TRX and stablecoin TrueUSD (TUSD). Along with Cardano (ADA) and NEO, Binance began supporting TRX/TUSD trading pairs from December 19th.
The TRON network has grown exponentially in the past few months, with data from TronScan indicating it will soon have over 1,000,000 active accounts. The network recently benefited from a record-breaking 2.64 million transactions in a single day.
While it may just be a late rally, the unique market movement shows a strong indication of decoupling of TRX from BTC and other crypto assets.
End of Year Volatility
While the cryptocurrency market is certainly exhibiting signs of a reversal from its recent year-long bear market, analysts have warned investors to remain cautious. The recent rally could simply be the result of Christmas hype and a lack of significant volume in the market means a downturn in the new year is likely.