• Tron is closing in on Cardano for the 10th spot on CoinMarketCap as its market cap rises.

• Strong fundamentals, including high daily active addresses and increased stablecoin transactions.

Tron (TRX) is rapidly closing in on Cardano (ADA) for the 10th spot on CoinMarketCap, driven by a strong market cap performance despite the broader crypto market’s volatility. With the market cap ranking serving as a crucial indicator of dominance and popularity within the cryptocurrency sector, Tron’s resilience in recent weeks has brought it closer to surpassing Cardano, reflecting its growing strength in a highly competitive market.

Tron Demonstrates Resilience Amid Market Volatility

Due to the fluctuations in the global economy and the price of cryptocurrencies, Tron has stood out to be one of the most stable platforms. Some drivers of the market downturn include the unwinding of the yen carry trade, the rising tensions in the Middle East, and the US presidential race. However, Tron has been able to sustain a rather stable price and is well on its way to outperforming Cardano. 

As of late July, Tron held the 12th position on CoinMarketCap with a market cap of $11.7 billion, sandwiched between Avalanche and Shiba Inu. Despite the recent market crash that saw Bitcoin plunge to a 25-week low and other top 100 altcoins posting double-digit losses, Tron only registered a decline of 8% at the height of the sell-off. This performance demonstrates the strength of the network in a volatile market environment.

After the crash, Tron had a strong rebound, with the token’s price increasing by 14% in the next ten days and taking the market cap to $11.5 billion. On the other hand, Cardano was initially down by 28% but has stabilized and is currently trading at a market cap of $12 billion. Tron is now only 5% away from attaining the same market cap as Cardano, and for TRX to achieve this, it needs to rise to $0.138 from the current price of $0.132. 

Fundamental Strength Behind Tron’s Growth

Tron’s increasing market cap is supported by several key metrics, indicating strong fundamentals and growing adoption. According to the recent report by Crypto Rank, Tron was ranked as the leading blockchain in the daily active addresses in July with 2 million users and overtook Near Protocol and Solana with daily active addresses of 1.9 million and 1.7 million, respectively. This increase in user activity further cements the network’s growing popularity and firmly establishes it as an important contender in the cryptocurrency market.

In addition, the stablecoins transactions within Tron’s ecosystem have also been on the rise, especially with USDT. In the second quarter of the year, the USDT trading volume on Tron rose to $1.25 trillion, which is one-third of the average annual volume of Visa. 

The recent addition includes SunPump, a platform where investors can build their own memecoins, which is an added advantage to Tron’s ecosystem. This new service has stimulated the demand for TRX tokens since memecoin creators and users have to pay fees in TRX. Therefore, the need for and use of TRX has been on the rise, which has also boosted the market capitalization of cryptocurrency. 

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