Recap of Tron’s growth journey and why TRX should be in your watch list
- Tron’s prospects look good after the robust growth it achieved in 2023.
- TRX could benefit from the network growth but only if the market is aligned positively.
Crypto-savvy observers and enthusiasts may have noticed that the Tron blockchain network has been receiving an increasing share of the spotlight. This has been the case for the last few months and a new update from the network reveals why.
How many are 1,10,100 TRXs worth today?
According to the update, 2022 was an important year for Tron, especially from a network growth perspective. The development efforts have certainly paid off considering the milestones also highlighted in the update.
Among those milestones include the total number of Tron accounts which surpassed the 100 million mark and peaked at 132 million at the end of 2022.
7/#TRX deflation grew significantly, reducing the total supply by 10 billion.https://t.co/qn1UxbDUeB
— TRON DAO (@trondao) January 24, 2023
The network also registered a 67.9% annual growth in the number of active accounts. This means there were more recurrent users on the network during the year. Such growth was bound to yield more transactions. This is why Tron managed to cross the 4 billion transactions milestone recently.
Tapping into robust utility
Tron was able to tap into growth opportunities thanks to stablecoins. According to the recent update, it ranked second in terms of stablecoin volumes. This robust growth and potential did not go unnoticed. It built trust among investors and that may have contributed to strong TVL growth of $6.33 billion.
Perhaps this robust growth will trickle down into TRX’s value, especially in 2023. TRX has enjoyed some recovery so far but 43% is within the normal range of the recent bull run.
Based on the above performance, TRX has not befitted much from the robust growth that the Tron network achieved in 2022. The prevalence of the bear market during the last 12 months is a plausible reason for this.
Now that the market is starting to recover, there is a higher chance that organic growth may contribute more to TRX’s value. A major short-term move may not necessarily be on the table especially now that investors are not very optimistic according to the weighted sentiment.
We did see a surge in volatility as the prices went up in the last few weeks. However, the volatility is now slowing down, which aligns with the unfavorable weighted sentiment. This suggests that short-term expectations may not really favor the bulls.
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The same case applies to the demand from the derivatives market. The Binance funding rate dipped slightly in the last few days. Onchain volume has also been relatively flat, confirming that the market enthusiasm and demand are cooling down.
What to expect
If Tron’s growth reflects in TRX’s value then holders of the cryptocurrency might be in for a strong rally. However, this is not a guarantee of what to expect because the bearish market conditions have also disfavored the coin despite the impressive network performance. Investors should thus also gauge their expectations based on overall market conditions.