Tron (TRX) Price Rebound Linked to Significant Decrease in Value-at-Risk and Beta

Tron (TRX) Price Rebound Linked to Significant Decrease in Value-at-Risk and Beta

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Tron TRX has been keeping its cool during a chaotic market ride. The tenth-biggest cryptocurrency has been trading above $0.26 for over two weeks, even as global trade tensions heat up.

This price stability despite market chaos can be attributed to a drop in key risk metrics.

Is TRX a Safer Bet?

Recent studies suggest that Tron's Value at Risk (VaR) has plummeted in the past few months. VaR, which gauges the possibility of losses at a 95% confidence level, paints a rosier, less volatile picture, apparently, according to CryptoQuant.

As the price recovers, the drop in VaR underscores Tron's growing strength in the market. Additionally, TRX's daily rolling Beta versus Bitcoin has also taken a nose dive. A lower Beta means that TRX is less responsive to Bitcoin's price fluctuations, which essentially implies a reduced correlation and increased independence from market swings.

Such a separation indicates a transition towards a more stable asset. Together, the lower VaR and Beta points indicate that Tron is not just recovering but doing so with reduced volatility and systemic risk.

"This powerful combo - price appreciation alongside reduced risk and market correlation - makes Tron a more appealing asset. It reveals a maturing ecosystem and a stronger base for future achievements."

Stablecoins are Flowing into Tron, Leaking from Ethereum

The bullish signs in the Tron ecosystem have been building steadily as investors have gravitated towards the asset. Lookonchain's analysis recently showcased that the Tron network has seen a massive influx of stablecoins, with USDT and USDC balances ballooning by $2.12 billion in a matter of seven days.

On the other hand, the Ethereum network witnessed a drain as stablecoin balances dwindled by $2.44 billion over the same period. This discord highlights a burgeoning preference and capital allocation towards Tron, which is most likely due to its lower transaction fees and swifter settlement speeds.

This movement of liquidity away from Ethereum to Tron also marks a shift in stablecoin activity. The increased adoption might be one of the forces fueling the market's current uptrend.

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In the current market volatility, Tron (TRX) stands as a potentially safer bet due to its lower Value at Risk (VaR) and daily rolling Beta versus Bitcoin, suggesting a reduced correlation and increased independence from market swings.

The influx of stablecoins, such as USDT and USDC, into the Tron network, coupled with the drain from Ethereum, indicates a growing preference for Tron, which may be contributing to the ongoing market uptrend.

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