Justin Sun is right about Tron Price and ecosystem growth

Tron price has continued to defy gravity by diverging from Bitcoin and other cryptocurrencies this week. The TRX token has soared for four straight days and is trading at its highest point since March. It has jumped by more than 26% from its lowest point in April.

Justin Sun is bullish on TRX

Justin Sun, the founder of Tron, has maintained the view that the TRX token and its ecosystem will continue doing well this year. He believes that the ecosystem is severely underappreciated and undervalued.

I have a feeling that the second half of this year will be a period of explosive growth for the Tron ecosystem. The current value of the Tron ecosystem is seriously underestimated.

— H.E. Justin Sun 孙宇晨 (@justinsuntron) July 10, 2024

Justin Sun is right to a large extent since Tron has become one of the most important blockchain networks in the industry.

The best example of this is in the stablecoin market, where the network handles over $40 billion each day. In some days, the network handles more stablecoins than companies like Visa and Mastercard.

Trons role in the stablecoin market is so important. Data compiled by DeFi Llama shows that the network has over $58 billion in stablecoins, which are mostly Tether. This is notable since Tether has a market cap of over $115 billion, meaning that Tron holds over 60% of these tokens. Tron is second only to Ethereum, which has over $78 billion worth of stablecoins.

Additional data shows that Tron is the biggest blockchain in the world n terms of active addresses. It has over 2.2 million addresses while Ethereum has 401k and Solana, BNB Chain, and Arbitrum have a 2.30 million combined.

The other important metric is on the total value locked (TVL) in the Tron ecosystem. While the network only has 34 dApps, it has a total value locked of over $7.47 billion. That makes it the second-biggest player in the DeFi industry after Ethereum.

Tron has achieved this success even without having meme coins in its ecosystem. Meme coins like Dogwifhat and Bonk have helped to boost the Solana ecosystem, especially its DEX platforms like Raydium and Jupiter.

Tron is one of the most profitable chains

Most importantly, Tron has become one of the most profitable blockchains in the industry. It generates most of its fees from its stablecoin transactions and other fees in its DeFi platforms.

Data by DeFi Llama shows that the network generated over $1.45 million in fees in the past 24 hours. More data reveals that Tron has made over $826 million this year, making it the second-best performing platform in the crypto industry after Ethereum.

Tron has also continued to improve its tokenomics. While most cryptocurrencies release new tokens periodically, Tron is actively burning its tokens. As a result, the number of TRX tokens in circulation have continued falling in the past few years.

Tron also has an exciting staking yield, helped by the huge fees and the token burns. It has a 4.15% yield, higher than Ethereums 3.35. All these factors make Tron one of the best cryptocurrencies in the market in terms of fundamentals.

Tron price forecast

TRX chart by TradingView

The daily chart shows that the TRX price has been in a strong bullish trend in the past few days. It has now jumped above $0.128, its highway point in June. Also, the token has remained above the 50-day and 200-day moving averages, meaning that bulls are in control.

The TRX token has also jumped above the Ichimoku cloud indicator. Also, the Relative Strength Index (RSI) has moved close to the overbought level.

Therefore, the Tron price will likely continue soaring as buyers target the year-to-date high of $0.145. This price is about 8.90% above the current level. A move above that point will lead to more upside in the near term.

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