- TRON’s illicit volume falls by $6 billion in 2024, boosting TRX’s appeal..
- Positive market reaction follows T3 crackdown on illegal transactions.
- TRX sees growth, with whales increasing their investments in the token.
In 2024, TRON achieved a significant milestone by slashing illicit volume by $6 billion. This success is creating a ripple effect across the market, propelling TRX’s price and fostering trust in the blockchain’s long-term potential in the crypto space.
Major Drop in Illicit Volume
TRON’s blockchain network has experienced a notable reduction in illicit activities, with illicit volume dropping by $6 billion in 2024. This decline reflects the blockchain’s successful efforts to combat criminal activity, enhancing its reputation. As a result, TRON’s native token, TRX, has seen positive market reactions, gaining value in recent days.
The TRON blockchain has for a long time faced criticism for its association with illicit activities. In 2024, it accounted for 58% of illicit volume, the highest among major blockchains. However, a collaborative effort between TRON, Tether and TRM Labs through the T3 Financial Crime Unit (T3 FCU) has helped to significantly decrease these illegal transactions.
According to a report from TRM Labs, illicit activity on TRON dropped by $6 billion. This represents a decrease of approximately 50% TRON-related illicit volume, reflecting the effectiveness of these initiatives. In August 2024, the T3 FCU froze over $130 million in illicit assets, further demonstrating its commitment to address the issue.
TRON’s efforts, combined with its low transaction fees, robust smart contracts, and popular stablecoins, have made it a preferred blockchain for many users. These features have attracted more legitimate users while reducing criminal involvement. Although it has faced challenges in the past, TRON’s blockchain continues to advance and improve its appeal to more users.
Overall Illicit Volume IN Crypto Market
Moreover, the broader cryptocurrency market has also seen a reduction in illegal activities. In 2024, the total illicit volume dropped by 24%, from $59 billion to $45 billion. While illicit volume still represents a small portion of total transactions, this downward trend highlights improved security and transparency in the crypto space.
Other blockchains also witnessed a significant drop in illicit volume. Ethereum blockchain came in second with a 24% drop in illicit volume , Bitcoin saw a 12% drop while BNB Smart Chain and Polygon witnessed a 3% drop each.
This highlighted the growing need for blockchains with low transaction fees, smart contracts, and popular stablecoins.
Price Action
The drop in illicit activities on TRON has also positively impacted the price of TRX. Over the last 24 hours, TRX saw a 3.02% increase, strengthening its market momentum. Technical indicators, such as the RSI and MACD, show that buyer interest is growing, further boosting confidence in TRX.
The involvement of large holders,whales, has also contributed to TRX’s upward trend. These investors have shifted their focus toward TRX, leading to positive netflows. This increase in capital inflows suggests that whales remain confident in the future potential of TRX.
The reduction in illicit activities on TRON is likely to foster further growth and adoption of the network.