On December 3, the price of TRON (TRX) surged by 103.4%, reaching a new all-time high of $0.45. However, the momentum slowed down, and by the time of writing, the price had dropped to $0.381, reflecting a 63.6% daily increase. TRX’s market capitalization fell to $32.5 billion, and the cryptocurrency dropped out of the top 10, ranking 11th.
Analysts attribute the recent TRON rally to political instability in South Korea, where restrictions on trading on the largest crypto exchange, Upbit, may have increased the volume of trades using TRX. Rachel Lucas from BTC Markets explained that TRX is widely used for quick transfers between exchanges, making it a popular tool among traders looking to move funds quickly.
However, Presto Research analyst Min Chong questioned the political crisis in South Korea as the primary driver of the rally. In his opinion, the TRX surge might be part of a broader trend known as the “Dino rotation,” where older cryptocurrencies, such as XRP, are seeing rallies in the current market conditions.
There are also rumors that a significant portion of TRX’s supply is controlled by TRON founder Justin Sun, which raises questions about the authenticity of the rally and its impact on the asset’s dynamics.
Justin Sun himself commented on TRON’s recent success on social media: “Six years later. Still here. Still #BUIDLing. Everything has changed, but one thing hasn’t: TRON remains a contender for a top-10 spot.”
It’s worth noting that in November, Sun purchased Maurizio Cattelan’s famous work “Comedian”—a banana duct-taped to a wall—for $6.24 million. Later, he invested $30 million in purchasing 2 billion WLFI tokens from the World Liberty Financial crypto platform, making him the largest investor in the project linked to the Trump family.
