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Tron’s 374% Profit-Taking Spree Uncovered—Here’s Who Was Behind It
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Breaking News: Bitcoin Hits ATH Of $112,000, Expert Predicts Rally Is Just Beginning

Tron’s 374% Profit-Taking Spree Uncovered—Here’s Who Was Behind It

Keshav Verma
Keshav Verma
2 weeks ago
3 mins read
Tron

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On-chain data shows Tron (TRX) observed a large profit-taking spike earlier in the month. Which type of holder was responsible for the move?

Tron SOPR Saw A Huge Spike Earlier In The Month

In a CryptoQuant Quicktake post, analyst Maartunn has talked about the recent trend in the Spent Output Profit Ratio (SOPR) of Tron. The SOPR refers to an on-chain indicator that tells us about whether the TRX investors are moving or selling their coins at a profit or loss.

The indicator works by going through the transfer history of each coin being moved to see what price it was last transacted at. Coins that have this cost basis above the current spot price are contributing to loss realization, while those with the opposite setup to profit realization.

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The SOPR takes the ratio between the spent value and cost basis, and sums it up for all coins being sold on the blockchain to find a net situation for the market as a whole.

When the value of the indicator is greater than 1, it means the investors are, on average, realizing a profit through their transactions. On the other hand, the metric being under this threshold suggests the dominance of loss realization in the market.

Now, here is the chart shared by the quant that shows the trend in the Tron SOPR over the past year:

Bitcoin SOPR
The value of the metric appears to have registered a sharp spike earlier | Source: CryptoQuant

As displayed in the above graph, the Tron SOPR saw a huge spike above the 1 mark earlier in the month, implying investors took part in a significant amount of profit-taking.

From the chart, it’s also visible that there were other profit realization spikes during the past year, but the current one stands out for its scale. The latest peak in the metric saw its value go to 4.74, corresponding to a profit margin of 374%.

“With TRX priced at $0.268 at the time, the average acquisition price for those coins would have been around $0.0566,” explains Maartunn. Interestingly, Tron hasn’t seen extended periods around this price mark since late 2022, meaning that the tokens would have been held for a good while before being finally transacted this month.

Usually, when dormant hands break their silence, it’s likely to be for selling-related purposes. That said, it’s not the only reason they may do so. “The activity could be tied to early investors realizing gains, internal transfers, or reallocation decisions,” notes the analyst.

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In some other news, the USDT supply on the Tron network has reached a new milestone, as institutional DeFi solutions provider Sentora (formerly IntoTheBlock) has pointed out in an X post.

Tron USDT Supply
The trend in the USDT supply circulating on the TRX network | Source: Sentora on X

There is now over $80 billion in USDT supply circulating on Tron, the second-most out of any cryptocurrency network.

TRX Price

At the time of writing, Tron is trading around $0.273, up 0.5% over the last 24 hours.

Tron Price Chart
Looks like TRX has made recovery from its plunge | Source: TRXUSDT on TradingView
Featured image from Dall-E, IntoTheBlock.com, CryptoQuant.com, chart from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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