The native currency of the Tron network, TRX, is one of the few cryptocurrencies in the current altcoin market to experience a price hike. As of this writing, TRX has gained 0.2% on a daily basis, with a 6.1% increase seen on a monthly timeframe.
A recent development might have something to do with this, as it pertained to the TRX environment. According to a tweet, the ecosystem has reportedly passed Binance’s BSC to become the No. 2 cryptocurrency in terms of total value locked.
Despite this progress, the price of TRX was rejected at $0.055175, causing a fall to its current market price of $0.053740.
The entire locked value of Tron has recently breached $4.30 billion, surpassing BSC by approximately $260 million.
#TRON surpasses #BSC to become the 2nd largest chain by Total Value Locked on-chain! @justinsuntron seems to be one of the only people that’s doing well considering the fall of all the heroes of 2021 #TRX #TVL pic.twitter.com/L1I1L50yHE
— Intuit Φ (@Intuit_Trading) December 17, 2022
Tron (TRX) Price Gets Rejected
DeFiLlama statistics reveals that TRX has dropped to third place since the tweet went public. While BSC has increased its TVL by 30% during the past two days, Tron’s TVL has decreased by 0.68% since December 17, the data shows.
This was reflected in the price, as TRX was rejected at $0.055175 on December 18. In addition, Tron’s USDD stablecoin has lately lost its peg.
Fears were raised amongst TRX advocates that the network could fail in the same tragic way that Terra did, as a result.
Meanwhile, the coin’s developers and founder Justin Sun developed TCNH, a stablecoin pegged to the offshore Chinese yuan, to compensate. It used offshore Chinese yuan to circumvent the cryptocurrency restrictions.
Nonetheless, if the Chinese government ever takes note of this growth, the absolutely top-down nation could make adjustments. the crypto may be safe from the Chinese government, though, because Justin Sun is playing it safe by sticking with the Chinese currency.
— TRON DAO (@trondao) December 17, 2022
TRX total market cap at $4.9 billion | Chart: TradingView.com
What Is The Impact On TRX?
Meanwhile, TRX is somewhat correlated with ETH. The token itself has moved upward in the past weeks, making it one of the outliers in the altcoin market that did not depreciate when ETH was struggling.
However, the token may be destined for further hammering. On December 16 it dropped a staggering 6.5 percent. The U.S. Federal Reserve hiked interest rates on this date.
With more anticipated interest rate hikes, the coming days or weeks could be more difficult.
Nonetheless, if this momentum continues, the Tron ecosystem will endure additional pain, as is already the case.
Investors and traders can short TRX as downward price movements are more likely than bullish price increases. However, the debut of TNCH will certainly attract Chinese crypto enthusiasts who were previously prohibited by regulation.