Tron: The Lone Survivor in Last Week’s Crypto Carnage
Among the world’s top-25 cryptocurrencies, only Tron managed to escape last week on a positive note, as a favorable news (or hype) kept TRX values elevated. However, the picture appears to have quickly shifted at the start of this week as the majors struggled to regain momentum.
TRX Vs. Broader Market
The cryptocurrency market shed more than $40 billion in value last week, as bitcoin plunged 9% and some of the leading altcoins declined 10% or more. As of Sunday, cryptos were trading at their lowest levels in about six weeks, with bitcoin showing signs of a major technical reversal.
Tron, on the other hand, managed to end the week on a positive note. Between May 19 and 26, the cryptocurrency gained more than 2%, including a brief stint at nearly one-month highs.
TRX peaked at $0.075 on Saturday, according to CoinMarketCap, bringing its total market value to nearly $5 billion on trade volumes of more than $313 million.
Interestingly, CoinMarketCap is reporting a more than 10% drop in TRX values between May 20 and 27, a reminder of just how quickly things can change.
Nevertheless, TRX approaching one-month highs during the third leg of a six-month market downtrend is significant.
At press time, Tron was valued at $0.070, having declined 2.3% over the previous day. Its daily trade volumes are $300 million, accounting for roughly 2% of total market turnover.
The Tron Hype Machine
It’s not always easy separating fact from fiction when dealing with Tron. The proposed ecosystem has many people excited about the future of digital content creation. However, a plagiarized whitepaper and speculation that the project’s owner Justin Sun sold 6 billion TRX tokens have made some investors jittery about the project.
When Tron overtook Litecoin in the crypto-market rankings, Sun trolled Charlie Lee for selling his LTC tokens. (It turns out Lee unloaded his coins and plans to exit Litecoin entirely someday for the purpose of decentralization.) Lee got the last laugh when allegations of Sun’s cash out went public in early January:
“Congrats @justinsuntron, but you’re making the wrong comparison. You’ve printed over 34% for yourself ($6B!) versus LTC that I bought and mined. I also didn’t sell for 6 years, yet you’ve only locked yours up for only 2 years. Lock it up for 6 years if you’re really confident!” Lee tweeted.
That said, Tron continues to generate favorable attention for its growing partnerships and key acquisitions. It was announced last week that Tron will be partnering with vSport to create a FIFA World Cup prediction platform. Just a few days ago, it was reported that Sun was planning to buy BitTorrent, the creator of the popular torrent client uTorrent.
These announcements allowed TRX to eke out rare gains last week in a market that was hemorrhaging money. Investors should therefore expect the hype machine to continue propping up TRX in the near future as the project heads toward full implementation.
Tron was recently featured on Hacked’s Five Ethereum-Based Tokens That Made It Big article, where it ranked second behind EOS.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.