The post Why Tron is Set to Rise: The Deflationary Trend Explained! appeared first on Coinpedia Fintech News
Tron has become deflationary this year despite most of the cryptocurrencies being inflationary. It is a huge achievement for tron to become a crypto whose token supply is decreasing. This shows the increase in adoption and activity for TRX token. This has become possible due to multiple factors that we are going to discuss.
The Numbers Behind the Deflation
In the past year, Tron’s circulating supply has dropped by 2.41 billion tokens. That’s a staggering $381.2 million at current prices! The total supply now stands at 86.56 billion coins, down from 88.97 billion. This marks a deflation rate of 2.93% 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 mechanism is similar to how Ethereum’s EIP 1559 operates. It helps protect TRX from inflation. It also ensures that resources aren’t misused.
Justin Sun’s Vision for Tron
Justin Sun, the founder of Tron and now the prime minister of Liberland, believes that the supply reduction trend will continue. This is very exciting news for holders of TRX token and for potential investors. However, it is also noteworthy that the trading volume of TRX token has fallen by 5.37% in the last 24 hours and it is trading around $0.1609. The price is 0.73% up as compared to the past trading day.
SunPump: The Meme Coin Craze
A key driver behind Tron’s recent surge in activity is SunPump, a no-code meme coin launcher. This platform has seen over 90,000 meme coins created. It has brought in network fees close to 35 million TRX. At its peak in early August, SunPump was generating 3.6 million TRX in fees daily.
Although SunPump has lost more than 99% of its activity in two months, it still attracts meme coin enthusiasts. To rekindle excitement, the team even launched an 888 TRX airdrop campaign.
What’s Next for TRX?
As Tron has achieved the status of a deflationary coin, the supply will keep on lowering creating scarcity. The innovative projects like SunPump will keep pushing TRX for more adoption for an interesting future.
