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Tron (TRX) Price Recovery Backed by Sharp Drop in VaR and Beta
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Tron (TRX) Price Recovery Backed by Sharp Drop in VaR and Beta
Jun 1, 2025 12:21 PM

Tron TRX has maintained strong stability during a period of widespread market turbulence. The tenth-largest cryptocurrency has consistently traded above $0.26 for over two weeks and has managed to retain this level even as global trade tensions rise.

This growth amid broader market volatility is supported by a marked decline in key risk metrics.

TRX A Safer Bet?

Recent analysis indicates that Trons Value at Risk (VaR) has decreased significantly in the past few months. This metric, which measures the potential for losses at a 95% confidence level, now points to a more stable and less risky investment profile, according to CryptoQuant.

The simultaneous drop in VaR during a period of price recovery highlighted Trons strengthening position in the market. In addition, TRXs daily rolling Beta against Bitcoin has also declined notably. A lower Beta means that TRX is becoming less sensitive to Bitcoins price movements, which essentially suggests a reduced correlation and improved independence from broader market swings.

Such a decoupling indicates a shift toward a more mature and stable asset. Together, the lower VaR and Beta metrics suggest that Tron is not only recovering in price but doing so with reduced volatility and systemic risk.

This powerful combination price appreciation alongside reduced risk and market correlation positions Tron as an increasingly attractive asset. It highlights a maturing ecosystem and a more robust foundation for future performance.

Stablecoins Pour Into Tron, Drain From Ethereum

The current bullish signal in the Tron ecosystem has been building gradually as market participants shifted toward the asset. Lookonchains analysis recently revealed that the Tron network has seen a significant inflow of stablecoins, with USDT and USDC balances collectively increasing by $2.12 billion in a span of seven days.

On the other hand, the Ethereum network experienced an outflow as stablecoin balances dropped by $2.44 billion over the same period. This divergence highlighted a growing shift in user preference and capital allocation toward Tron, which is likely driven by its lower transaction fees and faster settlement speeds.

The development also marked a shift in stablecoin activity as liquidity moved away from Ethereum to Tron. The increased adoption is likely one of the price catalysts playing out on the market now.

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