Why Tron Is Set To Rise: A Fake Trend Explained!
Tron has been bearish despite the bullishness of most cryptocurrencies this year. Tron is a huge success for being a crypto whose token supply is shrinking. This shows an increase in adoption and activity for the TRX token. This is possible due to several reasons which we will discuss.
The numbers behind the failure
Last year, Tron's circulating supply decreased by 2.41 billion tokens. That's a staggering $381.2 million at current prices! Its total supply now stands at 86.56 billion coins, down from 88.97 billion. This represents a 2.93% discount rate for TRX.
So how does this happen? On the Tron network, users must burn TRX to cover transaction costs when network bandwidth is low. This method is similar to what Ethereum EIP 1559 does. It helps protect TRX from inflation. It also prevents misuse of resources.
Justin Sun's vision for Tron
Justin Sun, the founder of Tron and now the Prime Minister of Liberal, believes that the trend of supply reduction will continue. This is very exciting news for TRX token holders and investors. However, it is noteworthy that the trading volume of TRX token has decreased by 5.37% in the last 24 hours and is trading around $0.1609. Compared to the previous trading day, the price has increased by 0.73%.
SunPump: Meme Coin Madness
A key driver behind Tron's recent boom is SunPump, a no-code meme coin startup. This platform has created more than 90,000 commemorative coins. It brought network fees of around 35 million TRX. At its peak in early August, SunPump was bringing in 3.6 million TRX payments every day.
Although SunPump has lost more than 99% of its activity in two months, it still attracts meme coin fans. To reignite the excitement, the team even launched an airdrop campaign for the 888 TRX.
What's next for TRX?
As Tron reaches a depreciating coin level, supply will continue to create scarcity. New projects like SunPump will continue to push TRX for further exciting adoption.
