An action by a Tron whale has elicited curiosity in the virtual currency market. Data shared by Lookonchain today December 4 showed that a trader created a new wallet and withdrew 4.85 million Tron tokens ($1.85 million) from Binance.
The on-chain analytics platform also disclosed that TRX’s price reached a new all-time high of $0.4313 today after surging by over 90%. TRX is currently trading at $0.3884, up 69.4% over yesterday, but down 9.43% from its new ATH.
Tron whale activity rises
The action by the trader withdrawing TRX from an exchange to a private wallet signals an increasing accumulation trend among whales who prefer potential altcoins like Tron. The shit in investor behaviors shows that these tokens are being moved to long-term storage wallets instead of being held on exchanges.
The huge transfers of tokens away from exchanges typically decrease the available supply for active trading, boosting price movements during periods of higher purchasing activity.
The withdrawal represents a significant shift in market dynamics. This movement decreases the selling pressure normally connected with tokens held in exchanges, possibly creating positive conditions for price increases. This activity indicates heightened confidence in Tron’s long-term potential amid ongoing favorable market conditions in the industry.
TRX accumulation is at its peak
Tron has gained a momentous achievement as its market cap surpassed $20 billion for the first time in history. Such growth is accredited to heightened activity by whales and a wider resurgence in the digital asset market.
The incredible price surge comes amid growing activity from big Tron holders. According to data from IntoTheBlock, the number of big transactions (holding a minimum of $100,000 worth of Tron) rose to 722 from 244 in a single day. The total value of these trading volumes climbed to a staggering $432 million.
Another vital activity is a shift in TRX’s net inflows and outflows on exchanges. Between November 30 and December 2, Tron witnessed an increased net outflow of 104 million TRX tokens compared to the net inflow of 81 million TRX tokens. Also, whales have accumulated more than 76 million TRX, igniting interest among small investors. This behavior could further bolster buying pressure and fuel TRX’s price ascend.
Why Tron’s price is rising
First, TRX is redefining the digital content creation landscape, allowing creators to manage and monetize their content directly through blockchain technology. Secondly, the significant increase in its market cap and trading volume strengthens Tron’s position as one of the leading cryptocurrencies in the market.
Thirdly, the founder’s active participation in the crypto industry gives investors confidence about Tron, as the token garners increased attention from the digital asset community. Late last month, Tron blockchain founder, Justin Sun, became an advisor to World Liberty Financial (WLFI), a DeFi crypto platform supported by Donald Trump, the newly elected US president.
TRX’s massive price gain and its elevated interest come a few days after Justi Sun stated that Tron is the next XRP token. TRX price rise connects with expanded interest among retail customers and institutional investors as Tron Futures Open Interest rose 43% to reach $184.82 million.
