Whales transfer funds to JustLend DAO on TRON

JustLend DAO received new inflows from TRON whales. In a series of transactions, the DAO saw inflows of more than 3B TRX. 

Recent whale activity boosted the TRX available in JustLend DAO, the largest DeFi protocol on the TRON chain. In four transactions, the lending protocol received a total of 3,037,916,172 TRX, valued at more than $465.2M. The tokens can be used as lending collateral, giving the whales access to stablecoins for further investments. 

A series of four transactions flowed in from four unknown wallets, with two of the transactions for more than 1B TRX. The transfers happened within minutes of each other, suggesting a single owner or entity. The addresses have a similar holding pattern, and are mostly filled with TRON-based tokens. Some of the wallets also hold BTT, SUNDOG, NFT and other minor tokens and meme assets. 

The recent transactions came from unidentified wallets. However, at the end of September, Justin Sun, TRON’s founder, used several known addresses to withdraw and re-deposit TRX from JustLend DAO. Sun has been active for several days, both withdrawing and re-depositing TRX since September 20. 

JustLend grows value with TRX expansion

JustLend is a major contributor to value locked on TRON, itself carrying $5.4B in collaterals and pools, based on DeFi Llama data. The lending protocol itself claims $6.98B in reserves, mostly based on TRON ecosystem tokens. 

The inflows do not coincide with any governance proposals, and do not threaten an attack against the DAO. Inflows may be part of the overall recovery of the TRON ecosystem, coinciding with the growth of TRX prices. 

The recent inflows significantly expand the available TRX locked in the DAO. JustLend carries a total of 14.31B TRX as collateral, which brings up to 12.74% in passive income when locked as sTRX. However, the known addresses of the DAO report current wallet reserves of just 2.6B TRX. 

The TRON community noted there may be multiple reasons for the deposits, but they are a sign to keep an eye on TRX for a price breakout. After the deposits, JUST tokens (JST) traded with little change at $0.028. 

TRX stands out from slumping market

TRX prices reawakened, rising to $0.1544. The asset has been expanding gradually in the past 12 months, starting at under $0.10 at the end of 2023. 

TRX has been ignored as the token failed to repeat its peak from the 2017 bull market. In hindsight, TRX did not suffer that much during the bear market. In the past day, TRX easily recovered above its 2021 peak, showing signs of continuing the rally. In the short term, TRX is expected to expand to $0.2. TRX has more than 6% of its trading volumes against the Korean won, and trades on Upbit with a minimal price premium.

Due to daily burns of TRX, the asset has a negative inflation of 2.64% on a yearly basis. The token has a high circulating supply of more than 86B, but is dedicated to limiting the supply. A total of 43B TRX is staked and outside the market. TRX is also wrapped or locked in pools, meaning it cannot be sold immediately.

TRX trading volumes are now lower, under $400M in 24 hours, but have become more predictable and sustainable at that level. Recently, TRON also showed signs of record fee earnings, based on expanding meme trading and DeFi. 

The native TRX token is gaining importance, as part of the asset exists as WTRX on the SunSwap exchange. The DEX holds all meme tokens that graduated from PumpSun, the meme launch platform.

TRON’s importance waned as most of the focus moved to Solana and Ethereum, as well as scalable L2 solutions. Despite this, on-chain apps kept developing and expanding their value locked. 

From October 8 onwards, the TRON chain will also start hosting WBTC. BitGo will allow the bridging of WBTC on the TRON chain, giving some control of the process to Justin Sun. The inflow of WBTC may further increase the liquidity of DeFi. TRON currently hosts $7.73B in value locked. 

Cryptopolitan reporting by Hristina Vasileva.