Possible Prediction: TRX Linked to BTC, Could Spark 4x Price Boost by 2025 - Expert's Forecast
Tron (TRX) Could Witness Significant Growth Due to Strong Correlation with Bitcoin
Market analysts are now speculating that Tron (TRX) may experience a substantial breakout, with its correlation with Bitcoin (BTC) emerging as a key catalyst.
According to CryptoQuant's on-chain researcher, Carmelo Alemán, Tron has the potential to "multiply significantly in value," possibly even quadrupling, if Bitcoin continues its bull run throughout the year.
This strong correlation between Tron and Bitcoin is likely to boost the growth of tokens that share this relationship during bull cycles, as noted by Alemán in a May 27 brief post on CryptoQuant.
tokens such as Tron, Sui (SUI), Cardano (ADA), Hedera (HBAR), and Litecoin (LTC) exhibit a historical synchronization with Bitcoin's movements. Given Bitcoin's $2.17 trillion market cap, which limits its upside potential, Tron's smaller market cap of $26 billion might offer more explosive growth opportunities.
"Bitcoin is unlikely to grow more than 2x from its current price," contended the researcher. However, highly correlated tokens like Tron could potentially triple, quadruple, or even more due to their smaller market caps making such expansions more achievable.
Bitcoin's recent rally has contributed to a favorable environment for associated altcoins. Even though it has slightly cooled off from its May 22 all-time high of $111,814, it has still climbed 16.4% over the past month. Its seven-day performance shows a more modest 3.7% uptick, but the overall trend remains bullish, with Bitcoin up 60% over the past 12 months due to institutional demand and exchange-traded fund (ETF) flows.
Meanwhile, Tron has outperformed its more established counterpart across various timeframes. Since yesterday, the token has climbed 1.9%, while over the past 30 days, it has gained over 10.4%. Over the year, Tron has particularly excelled, rising 146.4%—more than doubling Bitcoin's gains in the same timeframe. The upward trend has brought the altcoin to $0.2768, placing it just 35% below its all-time high of $0.4313, which it reached in December 2021.
The strength of Tron can be attributed to its rapid network growth, increased adoption across Asia, and a surge in Tether (USDT) supply on the network, surpassing that on Ethereum, indicating rising utility and trust.
In addition, CryptoQuant's recent drawdown heatmaps and risk metrics underscore Tron's resilience. TRX maintains one of the most resilient positions in the market, even as other altcoins falter. Its 180-day Sharpe Ratio falls between 0.1 and 0.15, while its Normalized Risk Metric hovers near 0.5, indicating a strong risk-return profile.
As of mid-May, data provided by an on-chain analytics platform revealed that all TRX holders, ranging from one-week traders to long-term investors, were in profit. This alignment often triggers a positive feedback loop, encouraging lucrative users to reinforce their investments and attract newcomers to join the growing Tron network.
Short-term predictions for Tron (TRX) growth suggest that the token could reach up to $0.73 by the end of 2025 if current trends continue[1]. In the mid-term, TRX prices might see a downward trend in 2026 but could recover and potentially surpass $2 by 2027[5]. However, volatility and potential downturns are forecasted, underlining the importance of evaluating investment strategies carefully.
- Market analysts believe that Tron's correlation with Bitcoin could lead to a substantial breakout for the cryptocurrency.
- According to CryptoQuant's on-chain researcher, Carmelo Aleman, Tron could quadruple in value if Bitcoin continues its bull run throughout the year.
- Other cryptocurrencies such as Sui, Cardano, Hedera, and Litecoin have historically synchronized with Bitcoin's movements, and Tron is no exception.
- Tron's smaller market cap compared to Bitcoin's might offer more explosive growth opportunities, making it potentially capable of tripling, quadrupling, or even more in value.
