Tron (TRX) price continued its remarkable rally this week. The coin surged to a high of $0.100, the highest point since 2021. It has soared by over 122% from the lowest point in 2022. This means that it has outperformed key cryptocurrencies like Bitcoin, Ethereum, and Dogecoin.
Why TRX price is soaring
There are three main reasons why Justin Sun’s Tron price is surging. First, the network has solidified its state as the second-biggest chain in the DeFi industry. Tron now has a total value locked (TVL) of over $8 billion, making it the second one after Ethereum.
The biggest players in Tron’s DeFi ecosystem are JustLend, stUSDT, JustStables, and Sun. JustLend, which has over $5.8 billion in assets, is the third-biggest player in the DeFi industry after Lido DAO and Maker.
Second, Tron has become a major player in the stablecoin industry. Data shows that the volume of stablecoins issued in Tron has jumped to over $45.90 billion. This is a substantial amount since Tether and USD Coin have $108 billion in combined assets. As a result, Tron has a big market share in this industry.
Read more: How to buy Tron.
Analysts believe that the stablecoin industry has room to grow in the coming years as the world moves to Real World Asset (RWA) tokenization. Stablecoins also thrive when the cryptocurrency industry is doing well.
Tron price has also jumped because of the increased number of users and fees generated in the ecosystem. Data shows that Tron averages over 1.5 million daily active addresses. It is also one of the most profitable networks in crypto. It generates over $1.5 million in fees every day. The daily fees now stand at the highest point this year.
Tron, like other cryptocurrencies, have also surged because of Bitcoin’s performance. Bitcoin has jumped to $35,200, the highest point this year because of the rising ETF hopes. If this ETF is approved, there is a likelihood that some companies will file for a Tron ETF.
Tron price forecast
The weekly chart shows that the TRX token price has been in a strong bullish trend in the past few months. It has jumped above the important resistance at $0.091, the highest point on May 2nd. Tron has risen above the ascending trendline shown in blue.
At the same time, the coin remains above the 50-week and 25-week Exponential Moving Averages (EMA). The Relative Strength Index (RSI) has surged above the overbought point at 70. Therefore, the outlook for the Tron price is bullish as its momentum continues. If this happens, the next key level to watch will be at $0.12.
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