Whales have transferred more than 3 billion TRX tokens into JustLend DAO, the largest decentralized finance (DeFi) protocol on the TRON blockchain.
The DAO received 3,037,916,172 TRX in four significant transactions worth over $465.2 million. This new influx will strengthen JustLend’s collateral reserves and provide whales with stablecoin liquidity for further investment opportunities.
Large whale transactions boost justLend DAO
JustLend DAO, which already holds substantial assets on TRON, saw four consecutive transactions from unknown wallets, each transferring a significant amount of TRX. Two of these transfers were valued at over 1 billion TRX each. The rapid succession of the transactions, completed within minutes of each other, suggests that the same entity or owner likely initiated them. The wallets involved primarily hold TRON-based tokens, including smaller assets like BTT, SUNDOG, and various NFT tokens.
This whale activity follows a pattern observed in late September when Justin Sun, the founder of TRON, moved TRX in and out of JustLend DAO. While these new transfers came from unidentified wallets, they mirror Sun’s recent actions of withdrawing and re-depositing TRX, beginning on September 20.
JustLend expands collateral with TRX inflows
As a significant contributor to TRON’s total value locked, JustLend plays a key role in the DeFi space. According to DeFi Llama, TRON holds $5.4 billion in collateral across its ecosystem, while JustLend reports $6.98 billion in reserves. The recent whale deposits increase the DAO’s TRX collateral base, which now holds 14.31 billion TRX. Users can earn up to 12.74% passive income when locking TRX as sTRX within the protocol.
Despite these large inflows, the known addresses associated with the DAO currently report only 2.6 billion TRX in wallet reserves. The recent transactions are not tied to any active governance proposals, and there are no indications of malicious intent. However, the TRON community sees the influx as a sign of potential future growth, with many speculating on a TRX price breakout.
TRX prices gain amid increased Activity
TRX, the native token of the TRON network, has experienced a price resurgence, recently reaching $0.1544. The token has been on an upward trajectory over the past year, rising from under $0.10 at the end of 2023. Despite not regaining its 2017 peak during the last bull market, TRX has shown resilience and has surpassed its 2021 high. Analysts predict further growth, with short-term projections targeting $0.20.
TRX has maintained a strong position in the market despite being overshadowed by networks like Solana and Ethereum. With a daily burn rate resulting in negative inflation of 2.64%, a large portion of the circulating supply remains locked or staked, reducing sell pressure. More than 43 billion TRX tokens are currently staked, with an additional portion wrapped or locked in pools, contributing to a sustainable market supply.
TRON is set to host Wrapped Bitcoin (WBTC) starting October 8, further enhancing its liquidity and DeFi capabilities. BitGo will facilitate the WBTC bridging process, increasing the value locked within TRON, which currently stands at $7.73 billion.