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- TRX climbed above $0.35, reaching its highest level since September 2025.
- Tron Inc. expanded its treasury holdings to more than 695 million TRX.
- Declining network activity is raising questions about the rally’s sustainability.
TRON’s native token, TRX, has extended its May rally, climbing more than 7% this month and reaching its highest price level in eight months. The move comes as several altcoins, including Zcash, Ondo, and Toncoin, also post strong gains amid renewed market optimism.
However, while price momentum remains strong, fresh on-chain data suggests the rally may not be fully supported by network activity.
TRX Hits $0.35 as Treasury Holdings Expand
TRX surged above $0.35 over the weekend, marking its highest level since September 2025. At the time of writing, the token was holding near $0.349, continuing to trade close to recent highs.
Part of the momentum appears tied to aggressive accumulation by Tron Inc., a treasury-focused company centered around TRX holdings. The firm recently added more than 142,000 TRX tokens at an average purchase price near $0.352.
The latest acquisition pushes the company’s total reserves to over 695 million TRX, reinforcing its long-term strategy around the ecosystem. The company said it plans to continue increasing its holdings to strengthen shareholder value over time.
The purchases have added another layer of confidence for bullish traders, especially as the broader crypto market continues recovering from April volatility.
On-Chain Metrics Tell a Different Story
Despite the strong price action, blockchain activity on the TRON network has weakened during the same period.
According to data shared by CryptoOnchain, the total amount of tokens transferred across the network declined sharply over the past month, falling from roughly 17.3 billion to 12.2 billion.
That divergence is drawing attention because healthy rallies are often backed by rising transaction activity and user engagement. In this case, TRX prices are moving higher while network usage trends lower.
Analysts say this mismatch could indicate that speculation, accumulation, or short-term trading activity is driving the rally more than actual ecosystem demand.
Can TRON Sustain the Breakout?
The key question for traders now is whether TRX can maintain support above the $0.35 level without stronger network participation.
Also Read: Tether Freezes $514M in USDT in Just 30 Days — Tron Users Hit Hard
If buying momentum slows, analysts warn the lack of growth in underlying utility may leave the token vulnerable to a pullback. On the other hand, continued treasury accumulation and broader altcoin strength could still provide near-term support.
For now, TRON remains one of the stronger-performing large-cap altcoins in May, but investors are watching on-chain metrics closely to determine whether the breakout has lasting strength behind it.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
