The Tron crypto is one of the coins to watch in the next few days. This is because the cryptocurrency has been receiving significant attention, especially as Bitcoin dominance cooled down and retreated below 60%.
While the BTC dominance declined, TRX crypto experienced the highest dominance among the top cryptocurrencies.
Its dominance jumped from a weekly low of 0.76% on Tuesday to 0.81% at the time of observation.
TRX dominance had been rallying since 28 October. This latest surge raised its dominance by roughly 12% from its October lows.
TRX price traded at $0.29 at press time after rallying by more than 5% from its weekly low. Despite this, its press time was still down by almost 2% from its opening price.
Nevertheless, top rivals such as Bitcoin and Ethereum experienced a heavier downside, indicating that Tron crypto weathered the bearish storm much better than its counterparts.
This outcome may have been influenced by the rising Tron crypto dominance. It may indicate higher levels of accumulation.
Can Tron Crypto Maintain the Bullish Momentum Amid Rising Net Flows?
TRX price has maintained an overall downtrend since the second half of August, as observed in its weekly time frame. However, the rising dominance may signal the start of a recovery wave.
The Tron network’s inflows may also support this recovery. According to DeFiLlama, Tron’s net inflows clocked over $107 million this week, which marked a 12-week high.
Tron also registered elevated perps volumes during the week. For reference, perps volumes amounted to $157.14 million in the last 24 hours. This was the highest daily volume observed in more than 2 months.
Tron’s rising perps volume and net inflows mirrored the rising network activity, which was also accompanied by a significant spike in address activity.
The Tron network’s weekly address activity surged past 25 million addresses between 27 October and 2 November.
This was the highest address activity that the network achieved in history, coinciding with the observed network activity in the last 7 days.
Tron Crypto Demand Recap in the First Week of November
The rising TRX dominance was not surprising, considering that on-chain data revealed rising accumulation.
For example, TRX spot net inflows have been rising over the last few days since the start o November, even though there were days where net outflows dominated.
The spot flows confirmed that demand has been rising as TRX achieved more downside. This was in line with the rising dominance, as well as its bigger recovery gains compared to its top rivals.
It was, however, worth noting that whale activity around the Tron crypto remained subdued. Weak whale activity may signal limited potential upside.
Meanwhile, TRX open interest jumped back slightly to around $270 million after bottoming out at $258 million. This meant it was down to levels last seen at the start of June this year.
The cryptocurrency’s open interest previously peaked above $638 million. It is worth noting that TRX open interest was orders of magnitude lower compared to top coins such as Bitcoin and Ethereum.
Consequently, the relatively low open interest meant that TRX was at a lower risk of liquidation events. This may explain its latest appeal among investors, amid rising spot demand.
