- Tron (TRX) reaches a new milestone in its deflationary strategy by burning 10 million TRX to subject the circulating supply to a huge decline.
- The total 2022 TRX supply of 101 billion has been steadily reduced to 86.56 billion TRX with the annualized deflation rate currently around 2.93%.
Tron’s (TRX ) deflationary strategy continues as the network burns a whopping 10,136,282 TRX out of circulation. According to our research, the production ratio has become negative (-5,069,243) with $809,558.11 permanently removed from the system. Meanwhile, Lookonchain’s data confirms that the token’s supply has dropped significantly from 88.89 billion to 86.56 billion over the past 12 months for a total annualized deflation of 2.93%. In 2022, the total supply of TRX hovered around 101 billion.
In the last year, $TRX supply has decreased from 88.97B to 86.56B, a decrease of 2.41B $TRX($381.2M).$TRX is in deflation at a rate of -2.93% in the last year. pic.twitter.com/LNG0f35Nav-Lookonchain(@lookonchain) October 11, 2024
Tron’s token deflationary narratives, according to our research, are quite similar to the burn schedule used by Binance Chain to achieve the 1.1% deflation average. If we look at its initial run period, Tron started as a high bid token and drifted with a price floor. Later, its utility expanded to include simple transactions, liquidity, etc. Currently, its price has been hit hard, as TRX’s price is nearing its six-year high of $0.3. At press time, the asset was trading at $0.16 after rising 4% in the last 24 hours.
Tron (TRX) Price Analysis
Assessing its current market momentum, we noticed that TRX’s Relative Strength Index (RSI) was around 57.58, indicating more room for growth until it reaches the overbought territory of 70.0. Its stochastic indicator also confirms bullish momentum with a reading of 66.63. According to our analysts, this implies that the asset will not run out of steam soon, but could extend its upside in the near term.
Tron’s daily active addresses have also seen marginal growth of 1.1% over the past seven days, underscoring the proportion of value and growing confidence in the asset. In contrast, TRX’s funding ratio indicated a cautious approach from investors with a reading of 0.0088%. This current state has been explained as a steady state where both bears and bulls could profit.
Looking at current investor behavior, we noticed that there is a large anticipation of potential volatility in the price as short positions for TRX, which is 54.11%, currently outnumber long positions of 45.89%.
In our recent analysis of a post by an analyst identified as “Wise Advice”, we noted that the asset is poised for a bull run considering its fundamental strength since the launch of the “SunPump” initiative. According to Wise Advice, Tron-based meme coins could reach a market cap of around $500 million or even $1 billion and could significantly affect the price of TRX.
In August, we also reported on a prediction from analyst Whales Crypto Trading that estimated TRX could rise between 100% and 150% in the near term following a move from the lower boundary of a weekly rising channel.
Tron is bouncing from the lower boundary of a weekly ascending channel. This bullish structure projects a 100-150% upside move. Watch for continued momentum as price rises within the channel.
At the time, TRX was trading at $0.139. With a current price of $0.16, this prediction is about to materialize.
