CV Market Watch™: TRON (TRX) Breaks Out, Doubling in a Day

The TRON ICO, once hampered by the Chinese ban and causing trouble on Binance, has now become the next breakout token.

TRON, an ICO that had the bad luck of colliding with the Chinese ban in September, made it big this week as altcoins recovered from the lows and had another bull market. The TRON breakout was already big, until the coin added  more than 120% overnight.

TRON is actively traded on Binance, but a few months after the ICO the project is still far from readiness. Still, the team considers the long-term view:

It is curious to note that just as the TRON total market cap reached above $1 billion, that all other coins in the top 20 had valuations above $1 billion.

The trouble with TRON, which until recently was a sub-penny token, is that it is still relatively thinly traded, on Asian exchanges and experimental platforms. CoinNest investing against the Korean Won has not started yet, and for now TRON may be a bit depressed, since it is traded mostly against Ethereum, which is having a bull run at the moment.

But the future of TRON as more money flows into cryptocurrencies may be quite bright, especially given the room for growth and the immediate effect of CoinNest.

Even with limited trading, TRON volumes are now above $230 million in 24 hours, more than two times the trading volume of OmiseGo (OMG), following the unprecedented rise in prices for a project that stayed dormant for a relatively long period.

The challenge that TRON now faces is to hold onto the gains, as the rise of altcoins has been very fast and there are risks that it is short-lived. TRON is a digital asset with a large number of tokens, a total of 100 billion. Of this amount, 64 billion are in circulation.

The best thing for TRON is that it trades against ETH mostly, and may partially avoid being depressed by Bitcoin whales. But as ETH increases in value, the position of TRON becomes more uncertain.