Feeding Frenzy Drives TRX Surge: Traders Swap Bitcoin For TRON
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Investors looking for quick returns are currently exchanging their Bitcoin (BTC) holdings for TRON (TRX) as growth accelerates in Justin Sun’s project. Demand driving the TRX surge seems to be stemming from investors based in Asia.
Bitcoin-TRON swaps in the past 24 hours were worth approximately 20,710 BTC or 3.32bn TRX – worth $84m at current prices. The most active market had been Hong Kong-based Bit-Z, which represented 60% of all BTC-TRX trades going through on exchanges. Two other Hong Kong-based exchanges, Binance and OKEx, also reported surges for similar trades on their servers, worth $32m and $1.6m respectively.
TRON has been steadily rising since the beginning of December. The TRX market cap increased from $820m to $1.3bn in the final three weeks of the year. Although TRX is still on the up and up, its price growth accelerated markedly this week; rising from $1.3bn on Friday to its present valuation of $1.73bn.
The total TRX market volume was worth just under $320m in the past 24 hours. A high trading volume and a corresponding price surge suggest a strong bull trend for TRON. Investors are buying into the feeding frenzy mentality and continuing to drive the price.
TRON said the spike in the TRX price showed investors were reacting positively to the project fulfilling stages in its roadmap. “The simple truth is that in any industry if you have a clearly stated business plan and show good progress toward fulfilling that plan, investors will reward you,” a TRON Foundation spokesperson said in a statement to Crypto Briefing. “Our job is to stay focused on executing.”
What’s Behind The TRX Surge?
TRON is a blockchain platform designed, originally, to decentralize the entertainment industry. Built initially on Ethereum (ETH), the network moved to its own mainnet last summer. Consumers use TRONIX – TRX – tokens to pay for content. The TRON team confirmed in July it had acquired BitTorrent, a peer-to-peer file sharing system principally used to freely distribute movies and songs.
TRON has added more than 24 new dApps to its platform since the beginning of the year, many of which moved over from other networks. The decentralized gaming feature, Everdragons, which ported over from Ethereum last week, has already proved popular. The sudden increase in the number of new features available on the TRON network may explain the surging TRX price.
The sudden increase in the TRON market isn’t just restricted to BTC holders. Trading volumes for other prominent pairs are also up. Investors are swapping Tether (USDT) for TRX, particularly on Binance – with more than $30m worth of trades going through its servers. Huobi and OKEx have also seen boosts in trading volumes, at $16.6m and $10.5m respectively.
Exchanges with fiat-cryptocurrency trading pairs have also seen an uptick in activity, although not at the same levels. Bitfinex, which offers a TRX-USD trading pair, had a market worth nearly $1m in the past 24 hours.
The author is invested in digital assets, including BTC and ETH which are mentioned in this article.