Tron is experiencing technical problems, but indicators show the possibility of rapid growth

Information is circulating on Twitter (which has already been confirmed by Exodus wallet representatives) claiming that the recent problems with USDT transactions have occurred due to a glitch in the Tron blockchain. We reviewed this situation and assessed the prospects for this blockchain.

What happened?

Many Exodus wallet users are reported to have received an error message over the weekend when transferring Tether stablecoins (USDT). When contacting the wallet’s tech support, they received a uniform response about a blockchain-level glitch: 

“Due to a spike in the Tron network, there’s been a surge of transactions failing due to not having enough transaction fees sent along with it.”

Tech Support claims that users’ assets are safe. However, the commission in Tron, which was used for all such transactions USDT, will not be refunded, clarified the customer support service. 

👋 Regarding the estimated TRX fee, the Tron Network made an unplanned change to their protocol due to the low-value transactions sent on their network. Here for context ➡️ https://t.co/j4aKsVX0yc  If you want us to look further reach us at support[@]https://t.co/73fngYTrDz – AC

— Exodus – Crypto Wallet (@exodus_io) December 5, 2022

According to representatives of the service, the developers are trying to eliminate the failure in the network. When some users repeatedly tried to perform such a transaction from Exodus wallet on Monday morning, it became apparent that the problem persists. Meanwhile, according to the latest data from tronscan.org, USDT-TRX transactions are running at a normal speed. This most likely means that this technical problem has something to do with the specifics of the popular Exodus wallet.

How did this affect its TRX price? 

It almost didn’t, as the market understands that this is a local and temporary problem. You can see on the chart that TRX experienced a small pullback over the weekend, but overall the asset is in a slow-rising trend. TRX follows the rising Bitcoin market, which rose to its weekly highs after Powell’s speech. Fed Chair Jerome Powell’s encouraging signs around inflation and unemployment aided the BTC bullish price momentum.

Moreover, early December was also positive as the TRX index (RSI) shifted into a bullish position. This created a positive image for TRX, as it indicated a high probability of a down trend reversal in the near future. However, the market is not fully confident in the recovery, so investor sentiment is still hesitant and wait-and-see.

How can I make money on this?

In our opinion, after the FTX saga, there are two clear beneficiaries of the crypto market — Binance, which gained even more market share, and TRON, whose founder Justin Sun is still in intensive negotiations to acquire the most viable parts of the FTX project to join his empire. It seems that not only both these projects were unaffected by the collapse of FTX, but they even left with some gains.

Confirming this theoretical reasoning, TRX has been on a recovery trajectory for the past two weeks (after a sharp collapse in November due to FTX’s problems). The Tron is up 19% from a one-month low. And as we mentioned above, the RSI index points to the possibility of a reversal and further upside for TRX. So to summarize, now is a comfortable entry point for those who would like to invest in this asset.