TRX’s latest upward momentum appears increasingly disconnected from actual blockchain usage and transaction activity levels.
Tron’s (TRX) performance so far in 2026 has been solid. In the past five months alone, the crypto asset has climbed more than 23%. Despite this, new data suggests that it faces correction risks.
According to CryptoQuant, TRX is showing a “glaring divergence” between its price and on-chain activity despite recently climbing back toward the $0.35 level.
Lack of Fundamental Support
The analytics platform found that while TRX has posted strong price gains over the past month, rising 10%, the network’s “Tokens Transferred (Total)” metric has moved sharply in the opposite direction.
Data revealed that the total volume of transferred tokens declined from nearly 17.3 billion to around 12.2 billion during the same period, even as the asset continued to rally. CryptoQuant said this disconnect has sparked concerns about the sustainability of TRX’s current upward momentum, as healthy price increases are typically accompanied by stronger network usage and utility.
The firm described the divergence as a sign that the latest rally may be driven more by speculation or token hoarding than by genuine user activity on the Tron network. It further warned that the absence of stronger transactional support could leave the $0.35 price level vulnerable if buying pressure weakens. This, in turn, could potentially increase the risk of a correction in the near term.
Justin Sun’s Troubles
TRX’s price has been largely immune to the growing dispute surrounding Tron founder Justin Sun and the Trump-linked crypto project World Liberty Financial, even as the conflict escalated into multiple lawsuits and public accusations. The tensions began in mid-April after WLFI proposed converting more than 62 billion locked tokens into a fixed vesting structure, while holders who rejected the terms risked having their assets remain locked indefinitely.
Sun described the proposal as coercive and argued that dissenting token holders were effectively being punished. He also alleged that his own WLFI tokens, which represented around 4% of the voting power, had been frozen, preventing him from participating in governance decisions. WLFI was also accused of operating through centralized controls hidden behind a decentralized governance structure, and the Tron founder claimed that anonymous parties could freeze assets and override decisions.
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Days later, Sun filed a lawsuit in California seeking restoration of his voting rights and token access. WLFI, on the other hand, rejected the allegations and accused Sun of misconduct and spreading false claims. WLFI filed a defamation lawsuit against Sun in Florida this month for allegedly orchestrating a smear campaign against the project and its backers.
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