Tron (TRX) saw a significant profit pullback in early June, and the mastermind behind it was actually TA?

Gate News, in the CryptoQuant Quicktake article, analyst Maartunn discussed the recent trend of Tron (TRX)'s Spent Output Profit Ratio (SOPR). The data shows that when TRX coin 'HODLers' break their silence, it is likely to be to sell related assets.

SOPR is an on-chain indicator that tells us whether TRX investors are transferring or selling their Tokens at a profit or loss. The indicator works by examining the transfer history of each transferred Token to understand the price of its last trade. Tokens with a cost basis higher than the current spot price will result in a loss, while Tokens with a cost basis lower than the current spot price will result in a profit.

SOPR uses the ratio between realized value and cost basis and adds it to all hard coins sold on the blockchain to find the net position of the entire market.

When the value of this indicator is greater than 1, it indicates that investors have achieved profits on average through trading. On the other hand, a value below this threshold indicates that the market is mainly in a loss.

Now, this is the chart shared by Maartunn, showing the trend of TRX SOPR over the past year:

(Source: CryptoQuant)

As shown in the figure above, TRX SOPR soared to above 1 at the beginning of this month, indicating that investors have made a lot of profit-taking.

From the chart, it can be seen that in the past year, the profit realization has also reached other peaks, but the current peak is particularly prominent. The latest peak of this indicator reached 4.74, corresponding to a profit margin of 374%.

Maartunn explained:"At that time, the price of TRX was 0.268 US dollars, and the average acquisition price of these Tokens should be around 0.0566 US dollars."

Interestingly, since the end of 2022, the price of TRX has not been hovering around this level, which means that these Tokens may have been held for a long time before finally being traded this month.

Usually, when 'dormant' breaks the silence, it is likely to sell related assets. Even so, this is not the only reason for their actions. "This behavior may be related to early investor profits, internal transfers, or re-allocation decisions," the analyst pointed out.

In addition, as pointed out by the institutional DeFi solution provider Sentora (formerly known as IntoTheBlock) in a post, the supply of USDT on the Tron network has reached a new milestone.

(Source: X, IntoTheBlock)

Currently, the circulating supply of USDT on Tron exceeds 80 billion USD, the second highest among all cryptocurrency networks.