Tron Crypto's Growing Influence
The Tron crypto is currently a coin to watch closely in the coming days. This is due to the significant attention it has been garnering, particularly as Bitcoin dominance cooled down and retreated below the 60% mark.
While Bitcoin's dominance declined, the 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 on a rally since October 28th. This latest surge increased its dominance by approximately 12% from its October lows.
At press time, the TRX price was trading at $0.29, having rallied by more than 5% from its weekly low. Despite this, its price was still down by almost 2% from its opening price.
Nevertheless, top rivals such as Bitcoin and Ethereum experienced a more significant downside, indicating that Tron crypto weathered the bearish storm more effectively than its counterparts. This outcome may have been influenced by the rising Tron crypto dominance, which could suggest higher levels of accumulation.
Can Tron Crypto Maintain Bullish Momentum Amid Rising Net Flows?
Observing its weekly time frame, the TRX price has maintained an overall downtrend since the second half of August. However, the increasing dominance may signal the commencement of a recovery wave.
The Tron network's inflows may also bolster this recovery. According to DeFiLlama, Tron's net inflows clocked over $107 million this week, marking 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, which was the highest daily volume observed in over two months.
Tron's rising perps volume and net inflows mirrored the increasing 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 October 27th and November 2nd. This represented the highest address activity the network has achieved historically, coinciding with the observed network activity in the last seven days.
Tron Crypto Demand Recap in the First Week of November
The rising TRX dominance was not surprising, considering that on-chain data revealed increasing accumulation. For example, TRX spot net inflows have been on the rise over the last few days since the beginning of November, even though there were days where net outflows dominated.
The spot flows confirmed that demand has been increasing as TRX achieved more downside. This was in line with the rising dominance, as well as its more substantial 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 had fallen to levels last seen at the start of June this year. The cryptocurrency's open interest had 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 recent appeal among investors, amid rising spot demand.