Tron price remained in a consolidation phase in the past few days as cryptocurrencies recoiled. TRX was trading at $0.054, which was about 21% above the lowest level this month. Like other cryptocurrencies, Tron plunged by more than 50% in 2022.
Consolidation continues
Tron is a leading blockchain project that was started by Justin Sun, the controversial Chinese software engineer. It operates as a blockchain operating system that handles billions of dollars worth of stablecoins on a daily basis.
Tron has been used to build some popular dApps in the industry. For example, it was used to build DeFi platforms like JustLend, JustStables, Sun.io, SocialSwap, and UniFi among others. According to DeFi Llama, Tron has a total value locked of over $4.5 billion, making it the third-biggest chain in the world.
JustLend is a major player in the DeFi industry. It is a lending platform that is an alternative to Aave. It has a TVL of over $3 billion, giving it a market dominance of 66%. Users can supply, borrow, and earn rewards at any time.
According to the website, it has a total supply of over $3 billion and total borrow of over $386 million. Most of these assets are in Tron followed by USDD, USDT, and SUN.
A key risk for JustLend is that it has some exposure to USDD, a relatively risky stablecoin that is similar to Terra USD. Like UST, the stablecoin is backed by a basket of assets like Bitcoin and USDC. Therefore, if it loses its peg, there is a likelihood that it will have a negative impact on Tron.
Another risk for Tron is JustLend’s market dominance. Like we saw with Fantom and Solana, having one entity with so much power can be risky. The second-biggest player in Tron, JustStables and Sun have a TVL of $931 million and $593 million, respectively.
Tron price forecast
The daily chart shows that the TRX price has been in a slow bullish trend in the past few days. Along the way, it formed a small ascending chanel shown in green. It moved slightly below all moving averages while the MACD has formed a bullish divergence pattern. Therefore, the coin will likely have a bearish breakout as sellers target the next key support at $0.0045.
