Key Takeaways:
TRON (TRX) climbed more than 7 percent in May, reaching an eight-month high of $0.353 on May 9, even as a key on-chain metric suggests the rally lacks fundamental support from network activity.
"This glaring divergence suggests that the current upward momentum to $0.35 is not supported by actual on-chain usage," an analyst at CryptoOnchain said. "It implies that the recent price action might be driven more by speculation or hoarding rather than organic network activity."
The price appreciation, which saw TRX trading at $0.349 at press time, was supported by continued accumulation from Tron Inc. (Nasdaq: TRON), the publicly traded company with the largest TRX treasury. The firm purchased an additional 142,127 coins at an average price of $0.3518, boosting its total holdings to over 695.4 million TRX.
However, the rally is occurring alongside a significant drop in network utility. According to CryptoOnchain’s analysis, the total number of tokens transferred on the TRON network has declined from roughly 17.3 billion to 12.2 billion over the past month. Without a corresponding increase in network usage, the $0.35 price level remains exposed to a potential reversal if buying momentum wanes.
The move in TRX comes as other altcoins, including Zcash (ZEC), Ondo (ONDO), and Toncoin (TON), have also rallied this month. While on-chain activity flashes a warning for TRX, the token is gaining structured financial exposure elsewhere. Russia's Moscow Exchange (MOEX) announced it is launching a new benchmark index for TRON, MOEXTRX, to provide institutional investors with standardized price tracking.
This article is for informational purposes only and does not constitute investment advice.
