TRX price just concluded the week with an impressive bounce back. This was after Tron crypto experienced two weeks of continuous downtrend since the third week of August.
This extended into the first week of September. It was the biggest pullback that TRX price experienced so far this year.
However, the cryptocurrency regained its bullish footing in the second week of September, leading to an 18% uptick.
TRX regained all the losses that it achieved in the first week of September. It exchanged hands at $0.35 at press time.
Whether this recovery will stick was still within the realm of uncertainty. Especially considering that Tron crypto price was still extremely overbought especially in the 1-month timeframe.
Moreover, the same chart revealed that the cryptocurrency has been on a steep uptrend for months.
A price correction was inevitable given the steep nature of the TRX price rally between June and August.
Speaking of, the recovery brought the price closer to its August highs, but its historic peak achieved in December last year remained elusive.
Whales are Back, But Will They Supercharge TRX Price Recovery?
Robust whale activity might just be what TRX needs to push to new highs. Speaking of, its press time price tag was only 29% away from retesting its previous high.
However, such a gap could be minuscule under the right conditions, especially where robust whale activity is involved.
A recent CryptoQuant analysis exploring transaction volume dominance by category revealed some interesting findings.
There was a surge in transactions over $100,000, which may explain why TRX price was able to achieve a sharp recovery.
The last time Tron experienced such transactions was in 2023. This observation underscored the rising involvement of institutional-grade transaction activity.
It was worth noting that the large transactions may not necessarily be linked to TRX demand. It was more likely linked to stablecoin transfers given Tron’s stablecoin dominance.
Tron Crypto Network Performance Recap
The demand for Tron crypto has historically been heavily linked to network activity. This is why a look at the network’s performance offers interesting insights regarding the TRX price performance.
For example, the volume was highest between 21 and 27 June, during which weekly token volume surged as high as $25 billion. Token volume has since cooled down to $718 million in the last 7 days.
The decline was also reflected in other key performance metrics, such as TRX DEX volume, which clocked $600 million in the last 7 days.
This marked a 9-week low and was also characterized by a slight dip in weekly transactions and weekly active addresses.
These declines reflected the cool-down since August, which had a significant impact on transaction activity.
However, the biggest shift observed in Tron network activity had to do with chain fees, which plummeted drastically in the last 5 weeks.
For context, weekly chain fees on Tron surged past $15 million between 11 and 17 August. However, they shrank by more than 50% below $7 million in the last 7 days.
This dip in Tron crypto network fees was not influenced by network activity. Instead, it was due to the network’s decision to slash rates by 60%.
A strategic move that was aimed at making the network even more attractive, especially for institutional adopters.
In other words, Tron opted to slash profitability in the short-term to boost adoption. This was not the first time that the network deployed such a strategy.
Some see this as one of the main reasons why Tron’s stablecoin strategy has paid off so far, considering that it has the highest transaction activity.
