TRX (TRXUSD) Splits From Solana (SOLUSD) and Ether (ETHUSD) as Justin Sun Reportedly Sends $21M Worth of TRX to Binance

TRX, the native token of the Tron network, saw a month-to-date increase of 9.5% in June, significantly outperforming its competitors Solana SOLUSD and Ether ETHUSD

Tron's TRX token saw a MTD increase of 9.5% in June, outperforming Solana's SOL and Ethereum's ETH, which both decreased by 9% and 11%, respectively.

However, data from Arkham Intelligence shows that on June 27, Justin Sun, the founder of Tron, moved 173.8 million TRX, valued at $21.4 million, to a Binance deposit address.

Meanwhile, Tron's total value locked (TVL) fell to a six-month low of $7.5 billion in June, according to DefiLlama, despite the price surge of TRX.

An alarming fact is that 75% of the network’s total deposits are concentrated in a single decentralized application, JustLend, which saw a 15% reduction in assets over 30 days.

A closer inspection raises concerns about the sustainability of Tron's ecosystem, especially since an astonishing 94% of JustLend's deposits are in BTCT, a TRC-20 token.

Moreover, data from Exponential.fi indicates that the $5.3 billion in BTCT deposits at JustLend yield 0%, suggesting that the primary beneficiary of these assets might be profiting indirectly, rather than typical users of the JustLend decentralized finance application.

While there is no direct evidence of wrongdoing, the misalignment of the TRX token price trend with the growth of the Tron network is less than ideal, particularly as none of its DApps are listed in the global rankings of protocols by fees.

Note that Ethereum remains the absolute leader in its ecosystem, with Solana also prominent, featuring applications like Raydium, Jito, and Marinade.

Although Tron has seen multibillion-dollar volumes in USD Tether (USDT), it has faced challenges with other stablecoin providers, including U.S.-based issuer Circle.

On Feb. 20, Circle, the issuer of the second-largest stablecoin, USD Coin USDCUSD, discontinued support for its TRC-20 version, citing trust, safety, and transparency concerns.

In November 2023, the nonprofit group "Campaign for Accountability" claimed that Tron had been named “in multiple international law enforcement actions involving billions of dollars in transactions by alleged organized crime groups and sanctioned entities.”

Related: Binance to remove prime brokerage loophole

On March 25, Binance, a leading global crypto exchange, also ended support for USDC on the TRC-20 network.

Users had less than two weeks to convert, transfer, or withdraw their tokens from Binance, though USDC transactions on other supported blockchains remained unaffected.

These incidents have further eroded investor confidence in Tron's ecosystem, despite the TRX price being seemingly unaffected by these uncertainties.

In April 2024, the U.S. Securities and Exchange Commission (SEC) reiterated allegations from its original lawsuit that Justin Sun and his companies sold unregistered securities through the Tron and BitTorrent (BTT) tokens, and accused Sun of engaging in "manipulative wash trading."

The SEC alleges that TRX and BTT were promoted and sold to "consumers and investors located in the United States."

Given that TRX has outperformed SOL and ETH by nearly 20% over 30 days, despite a decline in Tron's network TVL and indications that wallets linked to Justin Sun might be selling, the likelihood of TRX maintaining the $0.12 support level seems doubtful.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The above is the detailed content of TRX (TRXUSD) Splits From Solana (SOLUSD) and Ether (ETHUSD) as Justin Sun Reportedly Sends $21M Worth of TRX to Binance. For more information, please follow other related articles on the PHP Chinese website!