TRX’s Connection to BTC Might Lead to a 400% Increase by 2025, According to Analyst

Tron (TRX) is showing potential for significant price movement, as analysts highlight its relationship with Bitcoin (BTC) as a key factor driving this possibility.

On-chain analyst Carmelo Alemán suggests that if Bitcoin continues its upward trajectory, TRX could see a substantial increase in value, potentially quadrupling in price.

A Driver for Altcoin Expansion

Bitcoin is currently trading at $109,500, experiencing a slight decline of 0.5% over the last 24 hours, yet it remains a dominant force in the cryptocurrency realm. Alemán observed that assets closely linked to BTC often experience amplified gains during bullish trends, with their correlation measured by the Pearson coefficient.

“A strong relationship with Bitcoin indicates that related tokens are likely to demonstrate considerable growth,” the analyst noted.

The focus includes cryptocurrencies like TRX, Sui (SUI), Cardano (ADA), Hedera (HBAR), and Litecoin (LTC), all noted for their past alignment with BTC movement. They argue that while Bitcoin’s market cap of $2.17 trillion limits its growth potential, TRX, with a valuation of $26 billion, holds more room for explosive gains.

“It’s improbable for Bitcoin to exceed a 2x increase from its current valuation,” the analyst stated. “Tokens that share this correlation might triple or even quadruple in value due to their smaller market caps allowing for such growth.”

Bitcoin’s recent rally has created a favorable environment for related altcoins. Although it has slightly retreated from its May 22 peak of $111,814, it has recorded a 16.4% increase over the past month, although its performance over the last week shows a modest increase of 3.7%.

Despite this, the overall trend remains positive, with Bitcoin up 60% over the last year, driven by institutional interest and ETF inflows.

In this context, TRX has outperformed its more established peers across various timeframes. The token has increased by 1.9% in just a day, and over the past 30 days, it has risen by more than 10.4%.

Throughout the year, TRX has truly excelled, boasting a 146.4% gain which significantly surpasses Bitcoin’s growth during the same timeframe. This upward movement has pushed the altcoin to $0.2768, just 35% away from its peak of $0.4313 in December.

TRX’s Strength and Risk Metrics Indicate Robustness

It’s not just the connection to BTC fueling optimistic sentiment; Tron has experienced fast network expansion and growing acceptance, particularly in Asia. Notably, the amount of Tether (USDT) on its network has overtaken that on Ethereum, indicating increased trust and utility.

Recent risk analysis and drawdown heatmaps from CryptoQuant support this notion, revealing that TRX holds a strong market position even as other altcoins falter. The token’s 180-day Sharpe Ratio is between 0.1 and 0.15, while its Normalized Risk Metric is around 0.5, showcasing a favorable risk-return profile.

In mid-month reports, data revealed that all holders of TRX, from short-term traders to long-term supporters, were in profit. This unusual scenario often fosters a positive feedback cycle, as profitable users tend to promote the asset, bringing in new investors.