The Tron ecosystem is undergoing intensive price volatility in line with the broader market. Over the past 24 hours, TRX has traded within 2 major extremes. Tron (TRX) price fluctuated from a low of $0.1296 to a high of $0.1325. As of writing, the coin is now changing hands for $0.1312, up by 1.06% in 24 hours.
The Tron Memecoin Pivot
Tron is one of the top 15 digital currencies but with a very deep foothold in the stablecoin niche. While it has a bigger on-chain transacted volume above Ethereum for USDT, Founder Justin Sun is notably making a big pivot into the memecoin ecosystem.
The logic is simple, and it is to drive more on-chain volume for the Tron Network. The push toward memecoin will also fuel enhanced community participation with potential upside on TRX. In a recent post on X, Justin Sun revealed the injection of $10 million seed capital into its memecoin ecosystem. This funding came from a collaboration of Sun.io(@SunPumpMeme) and the Tron DAO.
.@sunpumpmeme X @trondao $10M Meme Ecosystem Boost Incentive Program 🤯 https://t.co/M9OhkP2F0e
— H.E. Justin Sun å™å®‡æ™¨ (@justinsuntron) August 15, 2024
This fund is designed to boost projects that launch on Sun Pump, the ecosystem’s dominant launchpad for memecoins. Funding remains a major source to attract new projects and developers. That the Tron Network has the right audience to power this growth is not up for debate. With this funding, the blockchain may see an explosion of memecoins to rival the likes of Ethereum and Solana.
The duo of Ethereum and Solana have recorded huge successes as a result of their memecoin pivots. For Ethereum, projects like Shiba Inu (SHIB) and PEPE, have stood out while BONK and dogwifhat (WIF) have set a major pace for the Solana ecosystem. While there are memecoin projects on Tron, none have registered a mainstream breakout recognition.
Sun is trying to change the narrative, sparking a new round of debate with his recent post to the community. He asked his more than 3.5 million followers on X which memecoin in its ecosystem will first breach the $10 million market cap. Notably, some of the top memecoins in the Tron ecosystem include Coconut Chicken (CCC), Trepe, TBull and TROGE amongst others.
Not Only a Meme Affair
Despite the prospects that the mainstream adoption of memecoins on Tron has to offer, these new pivot may not completely help grant the protocol its desired growth. About a month ago, the Tron founder announced the implementation of a gas free stablecoin transfers on the network.
This new incentive is designed to further drive the adoption of Tron as a payment utility network. To achieve its long term agenda, equal attention has to be paid to its Decentralized Finance (DeFi) ecosystem as well. Per data from DeFiLlama, the network’s TVL comes in at $7.07 billion. JustLend dominates this scene with $5.566 billion in locked assets.
With its core rival, Ethereum boasting a TVL of more than $88.7 billion, Tron has a lot of catching up to do. Should all growth factors align, the coin has what it takes to retest $0.5 in the short term and its All-Time High of $0.3004 in the long term.