TRON [TRX] Network Adoption and Usage Surge, But Will It Benefit Its Native Token?

Since hitting a recent high of $4.5 three weeks ago, Tron [TRX] has seen some strong downward pressure on the charts.

While Tron [TRX] has seen some strong downward pressure on the charts recently, after hitting a recent high of $4.5 three weeks ago, the altcoin has failed to recover fully since hitting a low of $0.22. At press time, the crypto appeared to be trading within a consolidation range between $0.22 and $0.26.

However, despite TRX’s failure to maintain the uptrend on its price charts, its network adoption and usage have surged throughout the year.

TRON reaches highest-ever fee revenues

According to Cryptoquant, TRON reached its highest levels ever for fees revenue. In October 2024, TRON blockchain recorded its highest ever fee revenue amount, surpassing $200 million.

This hike continued in November, with figures for total fee revenue exceeding $180 million.

In comparison, TRON blockchain recorded figures of $32.6 million in November 2022 and $102.3 million in November 2023.

This represented a 7x hike from 2022 and an almost 2x uptick from 2023. Therefore, the currently observed surge in fees is a clear sign of TRON’s increasing activity, while the ecosystem continues to expand considerably. This growth in its ecosystem and network usage is well-positioned to benefit its native token TRX.

Impact on TRX?

While TRON has seen a significant uptick in its network usage, TRX has faced considerable challenges too. Owing to the same, it has failed to keep up the pace.

Worth noting, however, that the altcoin’s recent price action and on-chain metrics pointed towards a potential trend reversal to the upside and subsequent price recovery.

For starters, TRX’s Relative Strength Index (RSI) made a bullish crossover over the last 24 hours. This crossover suggested that buyers have entered the market and are currently in control. With more buyers entering the market, it contributes to higher buying pressure – Driving the price up.

This can be further reinforced by the Relative Vigor index (RVGI), which also made a bullish crossover on the day. This implied that the crypto’s upward momentum has been strengthening, with its downtrend pressure dwindling too.

Additionally, TRX’s Binance funding rate has remained positive over the last 5 days. This underlined a high demand for long positions.

Thus, investors have been willing to pay a premium fee to hold their trade, anticipating more gains on TRX’s price chart.

Finally, bullish sentiments have also become prevalent among whales. According to IntoTheBlock, large holders inflows have surged over the past week to 321.45 million. Rising capital inflows from large holders is a sign of their confidence, with the market possibly anticipating more gains too.

TRON fees revenue may be surging, but TRX has over the past failed to maintain the pace to grow along with it. However, greater usage of the network may offer a positive outlook for TRX.

If the bullishness observed holds, TRX will break out of the $0.26 resistance and reclaim $0.30. However, if these fail to hold, TRX will breach below the consolidation range and dip to $0.20.