Tron (TRX) Enjoys Surge Following Increased Network Activity And Legal Win Against The SEC

Recently, Tron (TRX) has been garnering significant traction in the crypto market, emerging as one of the top-performing digital assets despite the broader crypto market showing signs of gloominess. In August, the price of TRX surged by over 14%, hitting $0.16 per coin, which is its highest valuation since May 2021. 

This remarkable surge can be attributed to a wide variety of factors, such as legal victories, technical indicators, and increased activity on the blockchain. During this period, Tron even managed to briefly pip Cardano to become the 10th largest cryptocurrency in the world by market capitalization. 

Court Rules In Favor of Justin Sun In Tron vs SEC Lawsuit

One of the biggest catalysts behind TRX’s recent price surge is the legal victory secured by its founder Justin Sun against the US Securities and Exchange Commission (SEC). The financial watchdog had accused Sun and the Tron Foundation of launching and selling TRX tokens without registering them as a securities offering. The legal battle cast a shadow over the Tron ecosystem, creating uncertainty among investors. 

However, on August 29, 2024, a New York federal judge made a ruling denying the SEC’s request to expedite the legal process. The regulator had sought to accelerate the proceedings quickly, which could have severely impacted Tron’s operations in the US market. The judge found that the SEC’s arguments in the case, particularly regarding the “common enterprise” aspect of the Howey Test, were not compelling enough at this stage of the litigation. 

The ruling will slow down the SEC’s legal efforts against Tron network but will provide Justin Sun and his legal team with more time to set up a robust defense. This is also helpful for investors as it significantly reduces the immediate regulatory risks associated with TRX. Both retail and institutional investors are now encouraged to hold and accumulate TRX. 

Launch of $SUNPUMP Token Drives Up Activity On Tron And Demand For TRX

Another factor contributing to the TRX price surge is the launch of the To The Sun (SUNPUMP) memecoin on the Tron network. The cryptocurrency has contributed to a significant increase in on-chain transactions, resulting in a surge in network activity. 

As per data sourced by IntoTheBlock, network activity on the blockchain has spiked by 124%, with transactions between $100 and $10,000 hitting $100 million in value, while transactions between $1,000 and $10,000 surpassed the $50 million mark. 

The surge in network activity is an indication of growing user engagement on the Tron blockchain. SUNPUMP’s massive popularity has managed to attract a large number of users to the network, driving demand for TRX, which is used to pay transaction fees. 

To The Sun also laid the groundwork for more than 7,000 new crypto tokens to be deployed on Tron, helping boost the blockchain’s overall activity even further. This surge has helped increase demand for TRX, leading to its price rising significantly. 

Tron Leapfrogs Cardano To Become 10th Largest Crypto

The skyrocketing network activity has helped create a milestone for the Tron network. Last week the cryptocurrency briefly surpassed Cardano (ADA) in ranking on CoinMarketCap, placing itself among the top 10 cryptos by market capitalization. 

However, this only lasted for a few hours as TRX was soon back down below ADA, but the gap between the cryptocurrencies is shortening. According to the latest data, Tron is ranked 11th on CoinMarketCap with a market capitalization of $13.4 billion, while Cardano is 10th with a market cap of $13.6 billion. 

The blockchain recorded a 151% surge in trading activity, and this was fueled by increased transaction volumes and growing interest in TRX. Technical indicators like the moving average convergence divergence (MACD) suggest a potential uptrend for the token, with the MACD line crossing above the signal line, which indicates a bullish environment where the positive sentiment surrounding TRX is reinforced. 

Cup And Handle Breakout Suggests Further Gains For TRX

A notable pattern observed in the TRX price chart is the “Cup and Handle” formation, which is a classic bullish pattern that signals the continuation of an upward trend. TRX recently broke out of the handle part of this pattern, which nevertheless confirmed a potential bullish price breakout. According to the chart pattern, TRX could be targeting the $0.18 to $0.19 range. 

The Relative Strength Index (RSI) for TRX has climbed above 70, which indicates that the asset is currently in an overbought position. While this could potentially lead to a short-term price consolidation, the overall bullish sentiment remains strong for TRX. 

Tron’s all-time high was recorded at $0.3217 – which it attained in January 2018, while its lowest valuation was recorded in November 2017, when its price stooped to $0.001804. Since then, the lowest price at which TRX changed hands was $0.00735, and the highest rebound recorded was when it hit $0.179725. 

The current market sentiment surrounding Tron is bullish, and the Fear & Greed index indicates 64, signifying Greed and increased buying activity. Currently, there are 86.85 billion TRX tokens in circulation that have attained a 24-hour trading volume of $477.759 million. 

At the time of writing, Tron (TRX) is trading at $0.1599 – up 2.6% over the last 24 hours. 

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