Tron Posts 200% Increase in Trading Volume as Memecoins Flock to it
Major cryptocurrency Tron (TRX) has experienced a resurgence over the past week, re-entering the top 10 most valuable coins by market capitalization. Its sudden price increase was driven by a meme coin frenzy, resulting in a significant buying spree pushing its value to the highest since late 2021.
Tron especially recorded a substantial 200% increase in trading volume during the last few days as it managed to post impressive price gains. Tron is one of the older cryptocurrency projects that has managed to stick around for a long time. It was launched in 2017 and has seen its ups and downs. It grew more than 17 times from sub $0.01 levels to a whopping $0.17 during the 2021 altseason, but it wasnt as impressive as some of its newer competitors like Solana (SOL), Dogecoin (DOGE), Polkadot (DOT), Polygon (MATIC) and Toncoin (TON).
Some Tron critics believe that the coin has gone out of fashion, and once it does, it is gone for good as traders move on to the next big thing emanating from the crypto market. However, Tron has managed to fight back at times and avoid sliding into permanent irrelevance. The latest price action is a testament to this fact. Tron may have a trick up its sleeve to avoid this damning fate.
Trons 7-Day Price Action
TRX is one of the few altcoins to experience a kind of resurgence amidst a slump in the markets. The now tenth-highest cryptocurrency by market capitalization started the last seven days gradually with a valuation just above $0.13. It appreciated slightly in the following days but never promisingly. It only started to rise strongly around 19 August and has since maxed out at around $0.165 a few hours ago before dropping sharply below $0.16 before press time.
What Caused Tron to Jump Suddenly?
The Tron blockchain was once touted as the next Ethereum by its proponents in late 2017. They believed it was more scalable and useful for layer 2 solutions seeking a blockchain network. However, during the ensuing years, the appeal of TRX waned, and Ethereum cemented its place at #2 in the coin charts. Tron was expected to fade into irrelevance.
However, Tron has since managed to cling on and remain in the grueling crypto news cycle. This time, it is being pushed as a possible alternative native blockchain for new meme coin launches. Solana is the blockchain ecosystem of choice for these joke tokens, which has driven considerable development on its RUST-based decentralized network.
However, TRX could spoil the party for SOL if it manages to divert all new meme token launches to its native chain. SOL needs to maintain its status as a useful solution for quick token launches, or it will be its turn to fade into oblivion.
Read more: https://zycrypto.com/tron-posts-200-increase-in-trading-volume-as-memecoins-flock-to-it/
Text source: ZyCrypto
