The cryptocurrency market is currently going through a period of instability which is making investors more reluctant to act. Nevertheless, while it is very difficult for analysts to predict whether the market will experience bullish or bearish movements, a part of crypto investors are interested in future performance of TRON (TRX).
This cryptocurrency stands out from the others because of a rather interesting fact. Indeed, while most cryptocurrencies struggle to stay in the green zone, it is in state of deflation for nearly a year now. According to experts, the TRX token broke the record for the longest period of time spent in a state of deflation.
Why is the TRX cryptocurrency so successful?
If it is true that the TRX token has been deflationary for a while, it is a situation controlled and fully willed not only by its developers, but also by its community.
In February 2021, the TRON network community approved the implementation of a burning mechanism supposed to reduce the total token supply in circulation over time. It’s basically a system that was designed to make the cryptocurrency deflationary.
Through this mechanism, the number of tokens in circulation gradually decreases, which has the effect of making the most valuable crypto. It is in stark contrast to inflationary cryptocurrencies as well as traditional currency. The value of the latter depreciates as banks and networks produce new coins.
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What have been the effects of deflation on cryptocurrency?
It was in April 2021 that the TRON network carried out the first deflation in its history (from March 30, 2021 to April 5, 2021). The project managers also took the opportunity to establish that such an action made TRX the first cryptocurrency in the world to move from inflation to deflation. They also felt that this move consolidated the value of the token.
Nevertheless, several analyzes reveal that the price of TRX has evolved irregularly since the beginning of the year in the midst of a period of deflation. Last June 1, the cryptocurrency reached a high of $0.08841, to immediately begin a relatively eventful descent just after.
On the other hand, it has experienced, during the last month, a 4.69% increase and more precisely 0.57% last week. The token is currently trading at $0.0615, according to data from CoinMarketCap.
A positive rumor?
Several reasons can justify the evolution of the situation with the TRX token. However, virtually all experts agree that the main reason is related to registered movements during the past mid-October period.
Indeed, the TRON network has recorded significant growth in terms of activities during this period. The analyzes carried out have identified that more than 4 billion transactions have taken place on the network in just 24 hours.
This resurgence of activity recorded by the TRX network in recent weeks is the cause of a rather interesting rumor. Indeed, several actors claim that the founder of the TRON network, Justin Sun, is the new owner of the Huobi cryptocurrency platform.
A rumor that has not yet been proven, but which has already had effects on cryptocurrency. After an analysis of the chart, we notice that the current level of stability of the TRX tokens is held at $0.048.
Is the TRX cryptocurrency likely to soar towards $0.1?
Despite its status as a deflationary asset, the majority of experts have a rather positive view of TRON. For the latter, as long as the cryptocurrency manages to break through the resistance level located around $0.075it is very likely that it will continue its course towards the limit it has reached this year $0.088.
Some even say she might go further towards $0.1. These opinions are reinforced when assessing the general sentiment around the TRX token and its recent movements.
As for the community, they too are very optimistic about the near future of TRX. They predict that it is possible for the cryptocurrency to trade at a average price of $0.066 by the end of October.
TRON is a cryptocurrency that has various advantages and also consumes 99% less energy than Bitcoin. As energy consumption is increasingly a serious problem for the industry towards the environment.