Key Insights:
- Tellor’s TRB token has surged by an impressive 750% in the past three months.
- The surge is linked to a spike in network activity, including daily transactions and active addresses.
- Despite the rally, overheating concerns arise as TRB futures funding rates turn negative.
Tellor’s native token (TRB) has experienced a remarkable surge in price, gaining over 750% in value over the past three months. This impressive performance has catapulted TRB into the list of the top 150 cryptocurrencies by market capitalization, as reported by CoinMarketCap. At the time of writing, TRB is trading at $87.85, with a market cap of $217 million.
The Impressive TRB Surge
The surge in TRB’s price can be attributed to a flurry of activity within the Tellor network, which recently hit an all-time high. According to analysts at the blockchain firm Santiment, Tellor’s network has generated over 50 unique daily transactions totaling $100,000. This heightened network activity has been accompanied by increased participation from large-scale investors, or whales, as well as a surge in daily active addresses, which reached 504 on October 23rd, as reported by Santiment.
Network Activity Soars, but Overheating Concerns Emerge
However, despite the impressive multi-week rally, signs of overheating have emerged in the TRB market. Data from Coinalyze indicates that funding rates on TRB futures across several prominent crypto exchanges, including Binance, ByBit, Huobi, and OKX, have turned negative. These rates, averaging -0.18, suggest that traders are willing to pay to maintain their bearish positions, possibly reflecting concerns about the sustainability of TRB’s rapid price increase.
Tellor, often described as a decentralized, permissionless oracle, operates on the Ethereum blockchain and various sidechains. It is crucial in providing decentralized applications with access to off-chain data. While Tellor and Chainlink share similarities as oracle solutions, Tellor distinguishes itself by emphasizing decentralization. Anyone holding 1,000 TRB tokens can set up a node and contribute data to the oracle. In contrast, Chainlink restricts data submission to whitelisted nodes.
Current Tellor Price Action
However, today, the TRB/USD pair is trading sideways, forming higher lows and lower highs. Over the past 24 hours, TRB has been trading between $100 and $80. The current support level for TRB/USD is at $80, while the resistance level is at $100.
TRB must close above the current support level of $80 to continue its upward trend. With this, we can expect TRB to reach the resistance level of $100 or even break through it. On the other hand, if TRB fails to hold above $80, it could fall back to its previous support levels.
Summary
Tellor’s TRB token has experienced an astounding surge in price, gaining over 750% in value over the past three months and entering the top 150 cryptocurrencies by market capitalization. This remarkable performance is closely tied to the record-breaking activity within the Tellor network, marked by an increase in daily transactions and active addresses.
However, concerns about overheating have arisen, with funding rates on TRB futures turning negative. Tellor’s unique approach to decentralization sets it apart from competitors like Chainlink, making it an intriguing player in the Oracle space.
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