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TRON (TRX) is on the verge of a potential breakout, which could enable it to surpass Cardano (ADA) in the competitive crypto landscape.
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Market analysts note that TRX’s market cap has notably increased and its trading activity has surged, indicating growing investor confidence.
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According to COINOTAG, “If TRX continues its five-month consolidation trend and breaks out, overtaking Cardano may become a reality soon.”
TRON’s recent gains and strong market presence suggest it may soon overtakes Cardano, driven by increased trading activity and investor interest.
Support levels at risk: TRX holds stronger than ADA
As Bitcoin faces significant downward pressure, recording its worst Q1 in seven years, the altcoin market is experiencing similar turbulence. Both TRX and ADA have traded below their recent highs, resulting in increased volatility.
Analysis from COINOTAG reveals that TRX has shed $14 billion in market capitalization since Q4 2024, while ADA has suffered a more substantial loss of over $20 billion. This trend suggests that ADA’s challenges may bring it closer to TRX in valuation.
Currently, TRX is stabilizing around the $0.20 threshold, having tested this support level four times since its peak of $0.44 last December. In contrast, ADA remains at $0.60 but has only tested this level twice. Analysts speculate that if bearish trends continue, ADA may lose its support sooner than TRX.
Source: TradingView (TRX/USDT)
The derivatives market illustrates the differing behaviors between Cardano and Tron amidst this uncertainty. According to Coinglass, Cardano leads riskier trading with an Open Interest (OI) of $766 million, though this is a decline from $1.12 billion earlier this year.
In comparison, TRX sports a much lower OI at $195 million, resulting in decreased exposure to major liquidations. The last 24 hours saw around $2 million in ADA long positions liquidated versus only $57.7k in TRX.
Consequently, while Cardano’s strong futures presence could benefit its price in positive market conditions, during downturns, ADA risks higher liquidation rates, while TRX should exhibit greater stability.
This reinforces COINOTAG’s earlier findings that point to Cardano being more vulnerable to loss of key support than TRON at this time.
Beyond speculation: What the data tells us?
Examining on-chain metrics reveals significant disparities over the past year. Cardano’s inability to reclaim the $1 level correlates with a dramatic -42.6% decline year-on-year in daily active addresses, currently at just 23,477. Conversely, TRX has witnessed a remarkable 53.1% increase in active addresses, now reaching approximately 2.6 million.
This trend is reflected in other critical metrics. TRX has generated over 1 million in fees, starkly contrasting with ADA’s 8,900. Despite a recent dip in decentralized exchange (DEX) volumes, TRX maintains a commanding lead with 76.1 million, far eclipsing Cardano’s 1.9 million.
Source: Artemis Terminal
Overall, the data indicates that TRON is significantly outperforming Cardano regarding network activity and user adoption. With its current momentum, TRON stands a solid chance of eclipsing Cardano’s market cap of $23 billion.
Conclusion
In summary, while both TRX and ADA face challenges in the current market environment, TRON’s superior trading activity, robust support levels, and increasing user engagement position it favorably for potential growth. Should TRON’s trend continue, it could not only sustain its value but also surpass Cardano in the market hierarchy.
