Burnished TRON [TRX] looks set to scale to new heights- Here’s why

• TRX’s circulating supply dropped considerably due to an increase in burning activity.
• TRON’s total value locked climbed back to the pre-FTX levels.

TRON [TRX] shared a report on the network’s notable developments that took place in the last week. One of the highlights was the sharp increase in the number of burnt tokens, which surpassed 15 billion. This could exert significant deflationary pressure on the price of TRX in the days to come.

The other major news was Binance’s announcement that it was working on a solution to reduce withdrawal fees of TRX tokens on its exchange.

These developments had a positive impact on the price of the coin as it gained 12% over the past week, data from CoinMarketCap showed.

Read TRON’s [TRX] Price Prediction 2023-24

TRX is burning hot!

The burning activity on the network intensified over the past few weeks. According to data from Tronscan, the number of daily tokens burned spiked 60% from the previous month.

With the number of new tokens generated being flat, the net issuance rate, or the difference in the number of tokens generated and the number of tokens burnt, fell further.  

Source: Tronscan

A steady drop in issuance rate makes a token scarce which could boost its demand in the market, resulting in price hikes. Over the last three months, about 600 million TRX tokens have been moved out of circulation.

Well, the coin witnessed impressive growth in its DeFi activity as well. According to DeFiLlama, the chain’s total value locked (TVL) jumped 35% over the previous month.

The TVL climbed back to its pre-FTX levels, reversing the losses it incurred since the contagion hit the market.

Source: DeFiLlama

TRX set for escalation?

TRX saw a sharp jump in its development activity which signaled that new upgrades and enhancements could meet their deadlines. Despite this, the weighted sentiment dropped, moving into negative territory.

The transaction volume rebounded after a steep decline was observed on 18 February. However, the volume could pick up if TRX continues to show promising figures as far as its burning activity was concerned.

How much are 1,10,100 TRXs worth today?

TRX’s daily chart looked bullish. At press time, it faced resistance at $0.07108. This level hasn’t been breached in the last eight months. A move past this resistance will solidify bullish prospects for TRX.

The Relative Strength Index (RSI) which stayed above the neutral 50 level throughout the last months, was inching towards the overbought region. This suggested that buying pressure could intensify.

The On Balance Volume (OBV) moved in an upward trajectory since the beginning of February, indicating that there was capital inflow into the market.

Source: Trading View TRON/USD