As Tron witnesses a spike in burning activity, will it fuel TRX prices? Assessing…
- TRX’s circulating supply was 90.4 billion, registering a fall of more than 7% on a YoY basis.
- Indicators suggested that market sentiment for TRX was weak.
With the intention of long-term market value growth, TRON [TRX] has taken deliberate measures to apply deflationary pressure on its native token TRX.
Read TRON’s [TRX] Price Prediction 2023-24
The network removed more than 20 million TRX tokens out of circulation on 16 May, marking the largest increase in burn rate in a month. Data from Tronscan showed that the burn rate increased significantly in 2023.
As the number of new tokens minted on the network remained largely constant, the net issuance rate, or the inflation rate fell further to -15.43 million, extending TRX’s deflationary streak.
The ‘burn’ is real!
Notably, TRX was in deflation for 249 straight days, as per data provided by Tronscan. With the spike in burn activity, TRX’s circulating supply contracted considerably in 2023.
At the time of writing, about 90.4 billion tokens were in public hands, registering a fall of more than 7% on a year-over-over (YoY) basis.
For the period from 29 December 2019 until press time, the annualized inflation rate for TRX was -2.89%.
Tron maintains dominance
Tron continued to outperform other major blockchain projects in terms of network activity.
As per data analytics platform Artemis, the daily active addresses on the Tron network hit 1.88 million on 16 May, eclipsing second-ranked BNB Chain and establishing a massive lead over chains like Ethereum [ETH] and Solana [SOL].
Moreover, the number of transactions executed on the network shot up over the past week. On 16 May, more than 9 million transactions were recorded on Tron, second only to top-ranked Solana.
TRX fails to impress
The impressive feat on the network traffic front started to pull TRX out of its predicament. At press time, TRX was valued at $0.07114, recording a marginal increase of 0.44% in the 24-hour period, as per CoinMarketCap.
TRX was under intense selling pressure in the last month, which resulted in value shedding of more than 13%. The prolonged downturn dented investors’ confidence in TRX as evidenced by the negative weighted sentiment.
How much are 1,10,100 TRXs worth today?
The drop in prices also put brakes on the coin’s trading volume as many existing holders preferred to adopt the wait-and-watch approach.
The negative funding rate for TRX on crypto exchange Binance indicated that bearish leverage traders, betting on price losses, were dominant in the market.