The Tron [TRX] protocol had beaten out Ethereum [ETH] in terms of social interest, according to Google Trends data. There was a lot of interest in Tron’s keywords when comparing the keywords TRC20 to ERC20.
Additionally, the weighted sentiment for Tron increased along with it. This suggested that TRX was viewed favorably by the crypto community. One explanation for the optimistic feeling Tron is experiencing may be related to whale behavior. Large addresses’ interest in TRX has materially increased over the past few months.
Whales’ increased interest in TRX has coincided with a rise in its price, suggesting that this factor may be behind TRX’s upward price movements. However, the network may become more centralized if there is a significant number of whales holding TRX. If these whales decide to sell their positions, retail investors may be more vulnerable to future price fluctuations in this case.
At the time of publication, TRX’s price volatility had decreased, suggesting that retail investors might be more secure in the near future. However, the drop in TRX volume over the previous few weeks may indicate that a price correction for TRX is possible in the future.
According to Token Terminal data, the number of active developers on the Tron network has decreased by 50% over the past 30 days, indicating a sharp decline in the protocol’s development activity. This might indicate that the protocol needs to be upgraded or updated in the future, which might make it harder for it to compete.
Additionally, during the same time period, the daily activity on the Tron network decreased by 12.0%. This may signal a slowdown in the network’s adoption and usage, which could worry Tron investors and users.
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