Tron’s (TRX) price has rallied over 23% in 2024, recently approaching $0.35. However, on-chain analytics reveal a significant divergence, with transactional activity declining sharply as the price rises. This disconnect raises sustainability concerns, as the rally appears driven more by speculation than genuine network usage. Concurrently, founder Justin Sun is embroiled in legal disputes with the World Liberty Financial project, though these tensions have not impacted TRX’s price so far.
Tron’s TRX has posted solid performance in 2024, climbing more than 23% in five months. New data, however, suggests the asset faces correction risks despite recently climbing back toward the $0.35 level. According to CryptoQuant, TRX is showing a *“glaring divergence”* between its price and on-chain activity.
Analytics found that while TRX’s price rose 10% over the past month, the network’s “Tokens Transferred (Total)” metric moved sharply in the opposite direction. The total volume of transferred tokens declined from nearly 17.3 billion to around 12.2 billion during the same period. CryptoQuant said this disconnect sparks concerns about the sustainability of TRX’s current upward momentum.
The firm described the divergence as a sign the rally may be driven more by speculation or token hoarding than genuine user activity. It warned the absence of stronger transactional support could leave the $0.35 price level vulnerable if buying pressure weakens. TRX’s price has been largely immune to the growing dispute surrounding Tron founder Justin Sun and the Trump-linked crypto project World Liberty Financial.
Tensions began in mid-April after WLFI proposed converting more than 62 billion locked tokens into a fixed vesting structure. Sun described the proposal as coercive and alleged his own WLFI tokens, representing around 4% of voting power, had been frozen. He also claimed anonymous parties could freeze assets and override decisions.
Days later, Sun filed a lawsuit in California seeking restoration of his voting rights and token access. World Liberty Financial rejected the allegations and accused Sun of misconduct and spreading false claims. WLFI filed a defamation lawsuit against Sun in Florida this month for allegedly orchestrating a smear campaign.
