After trying to find its bearings since mid-January, Tron [TRX] was at last displaying bullish optimism as of the time of publication. But, the explanation for why the bulls had regained control may be as as intriguing as the rally itself.
Recent research showed that Tron’s daily transaction fees saw a significant increase over the previous 24 hours, up until the time of writing. In addition, a short glance at DeFiLlama revealed that fees reached a high of $1.56 million. The amount of daily transaction fees that Tron recorded at this time was the highest in the previous two years.
Early reports claimed that Tron’s recently approved Proposition 83 was responsible for the increase in costs. The latter aimed to make it possible for smart contracts to use a dynamic energy model as their new energy pricing mechanism. Within days after the proposal was approved, there was a noticeable increase in daily transaction fees, indicating that the network was already being impacted by the implementation.
As a result, betting TRX got more lucrative. This could account for the spike in TRX demand and the market’s optimal timing. It was simpler for the bulls because the rest of the cryptocurrency market had also started the week strong.
At the time of publication, TRX was trading at $0.069 after seeing a 24-hour gain of 4.49%. With sustained demand, it may reach a new high given that this rally placed it in the same range as its press time ATH.
But how likely is a new local record? A prolonged uptrend is more likely, especially given that at the time of writing, the 50-day MA was crossing above the 200-day MA. TRX would need both strong volume and positive sentiment to maintain its upward trend
During the same period, TRX’s weighted sentient marginally recovered from its four-week low. It was, nevertheless, low in comparison to its monthly high and continued to trade inside the bearish zone.
On-chain volume for TRX throughout that time period followed a similar trend to the weighted sentiment. The fact that the whales had mostly backed the march could be one explanation for this. Due to the fact that TRX will likely become more visible to retail consumers due to good social dominance, the prospect of retail demand in the coming days could not be dismissed.
The social dominance measure was at its second-highest monthly peak in the previous 24 hours as of the time of publication. Moreover, development activity was constantly increasing, which would also reinforce the positive atmosphere.