- In the same day, Tron, the native token for the network of the same name, increased by around 80%.
- Some connected the march to the political unrest that erupted in South Korea overnight as a result of the president’s abrupt imposition of martial law.
- According to one expert, Tron’s rally consists of a number of different components, including the “Dino rotation.”
A number of reasons, including the political unrest in South Korea, which is home to one of the biggest and most active retail cryptocurrency markets globally, contributed to the recent 80% increase in Tron, the native token of Justin Sun’s Tron network.
TRX increased by 78.4% to trade at $0.40 at the moment. At approximately 11 p.m. on Tuesday, it reached a peak of more than $0.43. The Tron-based DeFi protocols’ token alone saw a 50% increase in value, trading at $0.06.
Tron’s unexpected rally was ascribed by some on the social media site X to the overnight unrest in South Korea.
For the first time in more than 40 years, South Korean President Yoon Suk-yeol proclaimed emergency martial law on Tuesday night. In South Korea, the term “martial law” refers to the direct military takeover of civilian government operations, usually in reaction to a serious threat to public order.
Five hours after MPs in the Korean parliament overwhelmingly rejected the declaration of martial law, Yoon canceled it.
Due to the explosion of South Korean exchanges, it appears that all cryptocurrency is migrating to international exchanges during martial law.
Due to a dramatic increase in activity, Upbit and Bithumb, the two biggest centralized exchanges in the nation, reported service interruptions that lasted one to two hours.
Political unrest in South Korea seems to have contributed to the current rally in Tron (TRX). TRX is a tool for traders wishing to transfer money between platforms fast because it is a commonly used transfer token between exchanges, particularly in South Korea.
According to Lucas, trading limits on Upbit, which occasionally controls more than 80% of the nation’s spot trade activity, may cause traders to seek out other means of moving assets, which would raise TRX’s trading volume.
Min Jung, an analyst at Presto Research, said although the political event probably played a role in the Tron rally, it is unlikely that the event alone was the cause of the increase.
Additionally, it might be a component of a larger “Dino rotation,” in which established cryptocurrencies like $XRP have been rising in the present market environment. Iota and Vechain, two other cryptocurrencies regarded as legacy tokens, have also recently enjoyed increases in value.
Furthermore, there are claims that Justin Sun controls a sizable amount of $TRX’s supply, which raises concerns about whether the rally is natural or orchestrated.
The founder of the TRON Foundation, Justin Sun, has made headlines lately after being appointed advisor to World Liberty Financial, the DeFi project supported by Donald Trump, the incoming president of the United States.
Sun also paid $6.2 million last month to purchase “Comedian,” a well-known piece of duct-taped banana art by Maurizio Cattelan, which he consumed during a press conference last week.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
