TRON’s ‘Illicit Volume’ Plummets $6 Billion Drop – Good News for TRX?

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  • 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 last year, TRON has been putting in a great deal of effort to improve its image, enhance its appeal, and minimize any potential legal issues.

In essence, blockchain technology has made an effort to combat crimes by preventing and seizing assets that were obtained illegally. Organizations like TRON, Tether, and TRM Labs joined forces in 2024 through T3 FCU for this purpose. As stated by Justin Sun, these joint efforts are showing positive results, leading to a decrease in illicit activity across the board.

A significant drop in illicit volume

As per the TRM report, TRON exhibited some favorable patterns in the year 2024. Interestingly, the majority of illegal cryptocurrency transactions took place on the TRON blockchain, accounting for approximately 58% of the total illicit volume. Ethereum came in second with 24%, while Bitcoin and Binance Smart Chain each accounted for about 12% and 3%, respectively. Polygon also saw a small percentage of such activity at 3%.

This underscores the increasing need for blockchains with affordable transaction costs, built-in contract functionalities, and widely used stable digital currencies.

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or simply:

The trend is towards blockchains that offer low fees, smart contract capabilities, and popular stablecoins.

Currently, TRON appeared to be making strides in this area, but it’s important to mention that it experienced a substantial decrease in illegal activities. In particular, the amount of illegal transactions on TRON decreased by approximately $6 billion, with the proportion of such activities almost being cut in half. Interestingly, nearly half (49%) of Tron’s illicit volume was associated with entities under sanctions, while 32% involved funds that had been blacklisted.

The drop in illegal activity on the TRON blockchain can be attributed to their efforts to identify and eliminate unlawful users from their network.

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In August 2024, TRON, Tether, and TRM created the T3 Financial Crime Unit (T3 FCU) – This unit was set up to foster collaboration between public and private sectors for the purpose of combating illegal activity associated with USDT and the Tron Blockchain. Since its inception, it has frozen more than $130 million of illicit funds.

What does this mean for TRX?

As illegal transactions decrease within the TRON blockchain, it means a positive development for TRX. To put it another way, an increase in trust among users towards the network will lead to higher adoption and more new users benefiting TRX. Importantly, over just the past 24 hours, TRX has seen modest gains as investors have seized the opportunity provided by positive news about the network.

Currently, when I’m typing this, the price of that particular cryptocurrency (altcoin) was sitting at approximately $0.244. Over the past day, there was a 3.02% increase, and interestingly, the crypto also demonstrated growth on its weekly charts as well.

With TRX making these gains, the question that arises is whether it can sustain them.

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As per AMBCrypto’s examination, Tron (TRX) has shown robust growth trends on its price graphs over the past period.

Example – Over the past 24 hours, TRX displayed an upward crossover on its Relative Strength Index (RSI). This crossover implies that buyers have been more active in the market compared to sellers, who seem to be slowing down their selling pressure.

In simpler terms, the altcoin’s growth is gaining more power, as indicated by the increasing MACD line that’s getting nearer to another positive intersection, suggesting a potential increase in price.

Looking further, all market participants seem bullish and have been continually accumulating.

As a researcher, I’ve observed a significant decrease in the inflow of funds to cryptocurrency exchanges, which is quite noticeable. Interestingly, this decline has even dipped below zero, suggesting an increased movement of assets out of these platforms, indicating a potential withdrawal trend.

To sum up, the big TRON investors (whales) have also shown optimism and continue to buy the cryptocurrency. The movement of large holders’ funds, for example, shifted from negative to positive after several days, indicating an increase in incoming investments from whales over outgoing ones. This suggests a rise in capital inflows compared to outflows.

To sum up, since TRON’s blockchain has experienced a decrease in illegal activities, it sets the stage for more development by boosting adoption, securing regulatory approvals, and increasing utilization.

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2025-01-17 15:04