TRON's Rise: Key Triggers Behind TRX's Growth in 2024
This blog post will cover:
- Key Reasons and Triggers for TRX Growth Since August 2024
- Conclusion
In August 2024, TRON (TRX) became one of the most successful cryptocurrencies, standing out amid a generally weakened market. Following the negative news around the TON blockchain, which saw it drop from the top 10, TRON climbed to the 9th position by market capitalization ($13.572.105.247). The price of TRX surged by more than 22.17% in the last month (August), reaching $0.1564, with a daily trading volume of approximately $300 million.
There are significant reasons why TRON has seen a substantial inflow of investors and outperformed the broader crypto market. In this article we will explore the primary factors and triggers that have driven TRX's growth since August 2024.
Key Reasons and Triggers for TRX Growth Since August 2024
Let's examine the primary drivers of Tron's rise.
Launch of the SunPump Meme Platform
The launch of the SunPump Meme platform has attracted a wide crypto audience, thanks to TRON's fast network and low transaction fees. Following the platform's introduction, TRON DAO, in partnership with SUN.io, announced a $10 million incentive program to foster the development of meme coin ecosystems.
Increased Network Activity and Transactions
After SunPump's launch, TRON experienced a significant increase in network transactions. Activity on the network grew by more than 100%, with transaction volumes ranging from $100 to $10,000 reaching $100 million. Overall, transaction volumes increased by 40% over the past month.
Justin Sun's Strategic Moves and Record-Breaking Token Dynamics
Justin Sun, the visionary behind TRON, leveraged his experience from Solana's Pump.Fun platform to launch SunPump Meme, setting records in token creation dynamics. This directly impacted the rise in TRX prices due to increased demand, as users need to pay transaction fees with TRX. Below are statistics from the last month on the creation of tokens on the TRON network (based on data from Dune Analytics). The second table shows the statistics of token issuance on Solana's Pump Fun platform (Dune Analytics). Currently, around 70,000 tokens have been created, with approximately 2% transitioning to SunSwap for full-scale trading on DEX. By comparison, on Solana's Pump Fun, where around 7,000 tokens are created daily, only about 50 tokens make it to DEX for full trading (0.7%).
Meme Token Trading: High Risk, High Reward
Trading on platforms like SunPump is essentially akin to gambling, where the odds of winning can be even lower than at a traditional casino. It is not recommended to participate in trading on these platforms.
Top Gain Meme Coins on TRON
The leading gainers in the TRON meme coin market, launched from SunPump Meme and dominating in trading volumes, include:
SunDog: One of the first meme coins on TRON, with a market capitalization of about $242 million.
Tron Bull: With a market capitalization of around $127 million.
Shisha Coin: Holding a market capitalization of approximately $34 million.
The combined daily trading volume of the top 7 TRON meme coins exceeds $100 million (see image 1), generating additional revenue for the TRON blockchain from network transaction volumes (see image 2). Over the last month, TRON's revenue growth due to transaction fees has been evident.
TVL Growth Boosted by SunSwap
TRON plans to expand its presence in the DeFi sector by enhancing its technological infrastructure. The demand for providing liquidity to the TRON ecosystem is rapidly increasing, driving its Total Value Locked (TVL) to $8.132 billion, according to DeFi Lama. The blockchain supports over 30 DeFi platforms in its ecosystem. In the last month, TVL grew from $6.805 billion (August 5) to $8.537 billion (August 27), an increase of over 20%.
Justin Sun's Personal Branding and Ambitious Plans
Justin Sun, CEO of TRON, plays a significant role in the ecosystem's growth, continuously promoting TRON at conferences and on social media while outlining the project's future plans. In a post on social media platform X (Twitter) on August 31, Sun expressed his intention to surpass the total revenue of the rival meme coin platform, Pump Fun from Solana, by the end of the year.
Additionally, the TRON team is preparing to launch several updates aimed at improving its ecosystem (tweet from July 6 by Justin Sun). The most anticipated update is the removal of transaction fees for stablecoin transfers by the end of this year, making the TRON network even more competitive and appealing to users.
Legal Victory Boosts Investor Confidence
Another trigger for TRON's growth was Justin Sun's legal victory over the SEC (U.S. Securities and Exchange Commission). The SEC had filed a lawsuit against the TRON Foundation, claiming that the sale of TRX constituted an unregistered securities offering and tried to expedite the process to weaken TRON. However, on August 19, a New York judge rejected the SEC's request, giving Sun time to prepare a robust defense. This outcome provided institutional investors with confidence, strengthening TRX's value in the crypto market.
Conclusion
TRON (TRX) is exhibiting a strong upward trend, breaking through a significant resistance level at $0.135 and approaching its all-time high (ATH) from 2021 ($0.18). TRX remains in the top 10 cryptocurrencies by market capitalization and is currently trading at $0.155. It holds its position above the 200-day moving average, indicating traders' confidence in continued growth.
You can buy or exchange TRON on SimpleSwap, a convenient crypto exchange platform that enables easy swaps with just a few clicks.
The role of the TRON blockchain cannot be overstated. In the stablecoin market, it leads with a daily transaction turnover exceeding $40 billion, often surpassing Visa and Mastercard. Given these strong growth triggers and bullish investor sentiment, TRON's price is expected to continue its upward trend and potentially reach a new all-time high.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.
