Tron (TRX), the native token of Justin Sun’s Tron network, has experienced a remarkable surge, rising by 80% in the past day. This significant increase is attributed to a combination of factors, including political instability in South Korea, which is home to one of the largest and most reactive retail cryptocurrency markets in the world.
Political Unrest and Market Reaction
The recent political turmoil in South Korea has played a crucial role in Tron’s price surge. On Tuesday night, South Korean President Yoon Suk-yeol declared emergency martial law, a first in over 40 years. Martial law in South Korea involves the imposition of direct military control over civilian government functions, typically in response to a significant threat to public order. The declaration was called off five hours later after lawmakers unanimously voted against it.
This political chaos led to a sharp increase in activity on South Korean cryptocurrency exchanges, with the two largest centralized exchanges, Upbit and Bithumb, reporting service suspensions lasting one to two hours due to the surge in trading volume. As a result, many traders turned to Tron as a means to quickly move funds across platforms, driving up its trading volume and price1.
Market Dynamics and Technical Indicators
Tron’s role as a widely used transfer token between exchanges, especially in South Korea, has made it a valuable tool for traders looking to safeguard their funds during times of instability. The recent rally in Tron appears to be partly driven by this political instability, as well as broader market conditions.
The TRX price reached a high of over $0.43 before settling around $0.40, reflecting a 78.4% increase. The trading volume for Tron also saw a significant boost, with a 540% increase to $15.11 billion in 24 hours. This surge in demand has placed TRX among the top five most traded altcoins.
Broader Market Trends
The political unrest in South Korea has also impacted other cryptocurrencies. For instance, the token for Tron-based DeFi protocols, Just (JST), jumped 50% to trade at $0.06. Additionally, other legacy cryptocurrencies like XRP, Iota, and Vechain have also seen significant gains under current market conditions1.
Analysts suggest that the recent rally in Tron could be part of a broader “Dino rotation,” where older cryptocurrencies are experiencing renewed interest and price increases. However, there are also concerns about the sustainability of this growth, with some speculating that a significant portion of TRX’s supply is controlled by Justin Sun, raising questions about whether the rally is organic or influenced.
