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Wednesday, November 25, 2020

Tron (TRX) price gains 9% as $210mln worth of TRX is locked in SUN genesis mining

  • At the moment, there are 6.7 billion TRX, worth around $210 million, on SUN genesis mining
  • Protocols found in the TRON’s DeFi also demand from the consumers to purchase the platform’s token
  • TRX price gained nearly 9% on Tuesday to continue its recovery from the sharp selloff from last week

Tron (TRX) price gained nearly 9% yesterday to continue its recovery from the sharp correction that took place last week. Separately, the total value of TRX mined on the SUN genesis platform jumped to $210 million.

Fundamental analysis: SUN genesis keeps improving

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Ethereum’s decentralized finance keeps attracting new investors in spite of dropping nearly $2 billion in recent days. The latest from SUN shows that developments in the ETH DeFi sector may be indicating the emergence of a new contender. 

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At the moment, there are 6.7 billion TRX, worth around $210 million, on SUN genesis mining. TRON’s DeFi latest product was rolled out earlier this month and only in a few hours it had 1.5 billion TRX staked, which has now increased to 6.7 billion TRX.

The expansion of the TRON DeFi had a beneficial effect on the price of TRX as well as the platform, even though the sector was often condemned for “copying and pasting” the Ethereum-based protocols. 

According to data provided by OKCoin, the sector displayed a positive performance of 60% in one week before the market collapse. While the price of TRX has been in the red recently, it’s still one of the top 20 digital currencies by highest monthly gains. 

“The reason why TRX has rallied so fast is due to how Tron developers have cleverly structured the protocols they are releasing,” said OKCoin, referring to Tron’s growth.

Just like Ethereum’s DeFi, protocols found in the TRON’s DeFi also demand from the consumers to purchase the platform’s token. 

“The yield farming protocols require users to deposit TRX and other Tron-based cryptocurrencies to generate a new coin. This means that those that want that coin but do not own TRX or other Tron-based cryptocurrencies are incentivized to go out on the market, buy those coins, then stake them for a profit,” OKCoin added.

Technical analysis: Recovery in progress

TRX price is currently trading around $0.035 after it managed to gain almost 9% yesterday. After a sharp correction that saw the TRX lose around 45% in its value in just a couple of days, the bulls have managed to recover nearly 40% of these losses. 


screen shot 2020 09 09 at 11 30 07 am
TRX price daily chart (TradingView)

The recovery has stalled at the 38.2% Fibonacci retracement line. A break of this intraday resistance line would open the door for a trip to the next Fibo retracement, sitting at $0.03850. Looking lower, the TRX buyers need to stay above $0.03250 to keep the bullish momentum going.

Summary

The total value of Tron (TRX) on the SUN genesis mining platform increased to 6.7 billion TRX or $210 million. TRX price is recovering from a sharp selloff in the crypto market as the buyers attempt to return to last week’s high. 

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