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Tron (TRX) Pumps Massively, But Something Is Happening in Background

Mon, 05/22/2023 - 12:22
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Arman Shirinyan
With millions of Tron-based tokens transferred in background, TRX goes ballistic
Tron (TRX) Pumps Massively, But Something Is Happening in Background
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Tron (TRX), the cryptocurrency created by Justin Sun, has experienced a substantial price increase over the last three days, with its futures gaining around 10% in value. This bullish activity represents the first major uptick for TRX in recent weeks, following a period of turbulence fueled by rumors about Justin Sun's possible arrest and the collapse of Tron-based algorithmic stablecoin USDD.

However, amid this welcome price boost, something unusual is happening in the background. According to blockchain analytics firm MistTrack, in the past two days alone, addresses identified as belonging to OKX, a popular cryptocurrency exchange, have transferred nearly 194 million TRC-20 USDT to the Kraken exchange.

TRX chart
Source: TradingView

To put it into context, similar transfers between these exchanges have totaled approximately 264 million TRC-20 USDT throughout May, meaning these recent two-day transfers represent a massive 73.5% of the total monthly volume. This notable shift of Tron-based USDT between exchanges raises questions about potential market manipulation or an upcoming significant move for TRX.

The TRX market has been on a roller coaster in recent weeks. After rumors of Justin Sun's potential legal trouble started circulating, coupled with the failure of USDD, Tron's native blockchain experienced a tough period. These developments impacted the TRX price negatively, but the recent price pump has provided a welcome relief to TRX holders.

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Yet, the ongoing transfer of large amounts of TRC-20 USDT between exchanges creates an air of uncertainty. Large transfers like these can significantly influence the price and trading volume of a cryptocurrency. While it is normal for funds to move between exchanges, the scale and timing of these transfers, particularly amid TRX's price pump, warrant scrutiny.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.