- TRON saw the largest decline in illicit volume, with figures for the same dropping by $6 billion
- TRX registered a hike of 3.02% on the charts
Over the past year, TRON has worked hard to restore its reputation and increase its acceptability, while reducing legal troubles.
In fact, the blockchain has attempted to fight crimes by restricting and confiscating assets acquired through criminal activities. To do the same, the likes of TRON, Tether, and TRM Labs started working together in 2024 through T3 FCU. According to Justin Sun, these efforts are now bearing fruit, with illicit volume falling across the board.
A significant drop in illicit volume
According to the TRM report, TRON saw some positive trends in 2024. Throughout the year, the largest percentage of illicit crypto activity occurred on the TRON blockchain with 58% of illicit volume. This was followed by Ethereum with 24%, Bitcoin with 12%, Binance Smart Chain with 3%, and Polygon with 3%.
This highlighted the growing demand for blockchains that have low transaction fees, smart contracts, and popular stablecoins.
Now, although TRON seemed to be leading on this front, it’s worth noting that it also saw the most significant decline in illicit activity. In fact, illicit volume on TRON dropped by $6 billion with the proportion of such activity nearly halving. Notably, 49% of Tron’s illicit volume was linked to sanctioned entities, while 32% involved blacklisted funds.
This decline in illicit volume on TRON is due to the blockchain’s focus on rooting out illicit actors on its blockchain.
In August 2024, TRON, Tether, and TRM established the T3 Financial Crime Unit (T3 FCU) – Aimed at facilitating a public-private collaboration to combat illicit activity using USDT and Tron Blockchain. Since its establishment, it has frozen over $130 million in illicit proceeds.
What does this mean for TRX?
With illegal transactions reducing within the TRON blockchain, it’s good for TRX. To put it simply, TRX will benefit more as more users will trust the network – Resulting in higher adoption and new users. Notably, over the last 24 hours alone, TRX registered moderate gains as investors capitalized on the good news about the network.
At the time of writing, for instance, the altcoin was trading at $0.244. This marked a 3.02% hike over the last 24 hours, with the crypto noting gains on the weekly charts too.
With TRX making these gains, the question that arises is whether it can sustain them.
Well according to AMBCrypto’s analysis, TRX has been seeing strong upward momentum on the charts lately.
Source: Tradingview
For example – TRX made a bullish crossover over the past 24 hours on its RSI. This crossover suggested that buyers have been dominating the market, while sellers are losing momentum.
To put it simply, the altcoin is seeing its momentum strengthen. This trend was further confirmed by the rising MACD line moving ever closer to another bullish crossover.
Source: IntoTheBlock
Looking further, all market participants seem bullish and have been continually accumulating.
This can be evidenced by a sharp decline in netflows to exchanges. In fact, netflows declined to a negative value – A sign of more transfers out of exchanges.
Source: IntoTheBlock
Finally, TRON whales have also been bullish and continue to purchase the altcoin. Large holder’s netflows, for instance, turned positive after remaining negative for days. This illustrated a hike in capital inflows from whales, compared to outflows.
In conclusion, with TRON seeing a drop in criminal activities within its blockchain, it positions the network for further growth through adoption, regulatory approvals, and usage.
