Tron price has retreated over the past eight days as recent momentum in the ecosystem began to fade.

Tron (TRX) was trading at $0.1565 on Monday, Sep. 2, down by over 7% from its highest point this year. This retreat has brought its market cap to over $13.5 billion.

Tron’s key metrics are falling

Still, Tron has been one of the best-performing major coins in recent weeks, having jumped by over 44% from its lowest level in August. It also reached a record high of $0.1690.

The token performed well following several major events during the month. The most notable was the launch of SunPump, the network’s meme coin generator. In less than three weeks, thousands of memes have been created, generating almost $50 million in fees. All meme coins in the ecosystem have a market cap of over $493 million. 

Recently, however, there are signs that the Tron ecosystem is losing momentum. For example, Sundog (SUNDOG), the biggest meme coin in the ecosystem, has dropped by over 24% from its highest level in August.

Other tokens like Suncat, SunWukong, FoFar, and Dragon Sun have also dropped by over 50% in the last seven days.

Additional data shows that Tron’s total value locked in its decentralized exchange network has dropped by 8% in the past seven days to over $8.1 billion. The volume of tokens traded in Tron’s decentralized exchanges has fallen by over 21% in the last seven days. 

Meanwhile, Tron’s open interest in the futures market has also continued falling. It moved to over $141 million on Sep. 2, down from August’s high of $234 million.

Still, Tron is one of the most popular blockchains in the industry. Its network has brought in over $1.1 billion in revenues this year, making it the second most profitable blockchains in the industry. It also has over $59 billion in stablecoins and 2.24 million active addresses. 

Tron price rally has eased

Tron has been in an uptrend since bottoming in 2021, making it less correlated with Bitcoin (BTC) compared to other coins. It jumped to a record high of $0.1690 last month and has now retreated to $0.155.

Tron remains above the 50-day and 200-day Exponential Moving Averages (EMA) and the key resistance point at $0.1451, its highest swing in February.

Therefore, there is a likelihood that the token will drop to the psychological point at $0.15 and then resume its bullish trend. More upside will be confirmed if it rises above the year-to-date high of $0.1690.

Tron (TRX) ecosystem is in the spotlight because of its meme tokens taking off. As one of the industry’s most dominant Layer 1 networks, the protocol is now implementing the play-books of rivals like Solana. For more than a year, Solana has recorded a thriving meme ecosystem with BONK and dogwifhat (WIF) successes. Tron Founder Justin Sun is confident the blockchain will stun the world with its lineup of meme coin innovations.

Tron Meme Coin; Hype Vs Reality

Every protocol has its strengths and weaknesses. While Solana suffers outages from Phantom Wallet and other DApps, Tron still needs to. Riding on this, Sun believes the protocol needs to build on this network stability to bring more value to the community. This desire helped birth the Tron Meme Coin season.

Per data from DeFiLlama, the TRX DeFi ecosystem boasts of a Total Value Locked (TVL) of $8.764 billion. This figure shows a high level of liquidity that surpasses that of Solana at $10.852 billion. This TVL is evidence that the Justin Sun-backed network has what it takes to fuel a sustainable memecoin season.

Already, a number of Tron meme coin have made their emergence with positive milestones. One of the top meme coins to buy in 2024 is Sundog. This token is gaining a huge recognition as one of the key pioneers in its ecosystem with potential growth tracks like dogwifhat.

Several market analysts are engaged in debates on whether this meme hype will last. As a sign of the positive growth is the 410% surge that the Tron meme coin Sundog has printed in the past week. While it might be too early to predict, every thriving memecoin passes through different growth cycles and Tron’s best tokens might also follow the trend.

For now, pundits agree on the major catch for these memecoins, and this includes how early it is for interested investors to get in.

The Sun Pump Advantage

The meme coin world is filled with a lot of fraud. It is not uncommon for projects to rug at the early stage of their launch. To curtail this trend, the Tron ecosystem launched Sun Pump, a fair memecoin launch platform.

With Sun Pump, every new project passes through a bonding curve. Here, investors determine which Tron meme coin will go live on Sun Swap, the ecosystem’s top DEX. The role of Sun Pump is the response of Tron to the Pump Fun platform on Solana. Both protocols work to prevent fraud and is decentralized enough to permit ecosystem-wide participation.

The Sun Pump advantage for now is its newness, one that might favor its adoption over Solana’s Pump Fun. With Sun Pump already beating Pump Fun in earnings, Justin Sun predicts a $4 billion revenue peak with its meme strategy. On which of the protocol’s meme ecosystem will outshine the other, only time will tell.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.