Tron’s Meme-Wave: A Threat to TRX’s Stability? 🤔
The Tron network is experiencing a memecoin craze, with the popularity of SunPump, a Tron-based platform focused on memecoins, driving a surge in their activity. This has significantly reduced the dominance of stablecoins on the network, which previously accounted for 98% of transactions.
- Stablecoin activity has now dropped to roughly 75% of the network’s transactions.
- The largest memecoin on the Tron network, SUNDOG, has seen a massive surge in investor interest.
- USDT volume on the Tron network has decreased by a significant 37% since SunPump launched.
Could this shift be bad for TRX?
This shift towards volatile memecoins raises concerns about TRX’s long-term value. While the memecoin craze initially boosted TRX’s price, it hasn’t been able to shield it from the effects of Bitcoin’s volatility.
- The recent $0.142 billion USDT outflow on the Tron network indicates that some investors are moving away from TRX and towards stablecoins.
- This could lead to a correction in TRX’s price as investors seek to exchange USDT for TRX when the price dips or they reach a profitable position.
It’s too early to tell whether this memecoin craze will ultimately harm TRX. It could lead to a price correction, but it could also push TRX into uncertainty if investors continue to favor memecoins. The situation is still developing, and it remains to be seen how it will play out for TRX in the long term.
