TRON Supply Squeeze Looms as Canary Capital Launches Staked TRX ETF
Canary Capital's launch of the Canary Staked TRX ETF (TRXS) has sparked speculation about its potential impact on the supply of TRON (TRX). The new ETF offers U.S. investors exposure to TRON's spot price and staking rewards, but some are questioning whether it will trigger a supply squeeze in the market.
According to DeFiLlama data, the amount of USDT on the Tron blockchain has increased by more than 2% in the last thirty days. In contrast, the balance on Ethereum (ETH) has decreased by 0.5% during the same period. This means that more than 50% of the total Tether supply is now on the Tron blockchain.
Justin Sun, the founder of TRON, recently pointed out that several heavyweights like BlackRock, Vanguard, and Goldman Sachs have entered the DAT's shareholder register. This growing institutional interest in TRX has raised questions about further accumulation and its potential impact on the supply of TRX.
The launch of the staking ETF could potentially lock up more TRX for staking, reducing selling pressure and causing a supply shock in the market. If this happens, it could lead to a huge move in the price of TRX.