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TRX traders may have to tread carefully despite these promising updates
The Tron network gave the community some noteworthy updates, however, TRX didn’t mirror the expected excitement. A shift in trend could be observed in the long run but short-term prospects remain motionless.
- Tron reveals its strategic plan that it will use to attract more organic growth.
- TRX’s volume and sentiment witnessed a shift towards the positive since 14 May
The cryptocurrency market has become more competitive over the years as more participants enter the fold. And Tron happens to be one of the networks that is looking to secure a larger part of the blockchain pie.
Read Tron’s [TRX] price prediction 2023-24
Tron’s latest announcement highlighted one of its strategies to be a more attractive network. The network’s latest announcement revealed that it will facilitate listing opportunities for crypto projects on the Huobi Global exchange.
The caveat is that the preferential listing opportunities will only be available to projects building on the Tron network.
Providing preferential listing opportunities on @HuobiGlobal for projects built on the #TRON network is a good step that could attract more powerful projects to the network ? pic.twitter.com/iSzxOgsCGu
— TRON Community (@TronixTrx) May 18, 2023
The announcement highlighted Tron’s plan to attract more projects on board. A move that may pave the way for more organic growth in the long term. Such an outcome would also yield more demand and utility for the TRX cryptocurrency.
Furthermore, as per another announcement, the Tron network burned 19,481,159 TRX as of 17 May. This could be taken as substantial evidence that the network was all in for deflation and value growth.
#TRON just burned 19,481,159 #TRX on May 17th ? showcasing a commitment to deflation & value growth ? With a net negative production ratio of -14,413,768 ? pic.twitter.com/7HspLnlyGV
— TRON Community (@TronixTrx) May 18, 2023
Both of these announcements emphasize TRX’s long-term bullish potential but can they trigger some short-term excitement? TRX maintained a bullish performance in the last seven days. It has so far managed to retain most of the gains achieved on a year-to-date basis. This indicated the level of confidence among TRX holders.
Assessing Tron’s on-chain data
Tron’s on-chain performance revealed some noticeable changes in the last five days. For example, on-chain volumes have been gradually increasing from their lowest monthly level on 14 May. The recovering volume also reflected the sentiment shift observed on the weighted sentiment metric during the same period.
Source: Santiment
The gradual volume increase was quite modest, meaning TRX was still in a phase of low market activity. This was largely due to the prevailing market conditions that revealed a depressed investor mood. Despite the outcome, the level which underscores low demand for TRX daily active users remained low.
Source: DeFillama
The above findings further revealed a lack of robust excitement in TRX holders. In other words, the recent announcements regarding Tron may not necessarily support a strong shift in the short term. That may not necessarily be the situation.
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TRX exchanged hands at $0.070 at the time of writing. The same price point represented a healthy level and revealed that the cryptocurrency was among the best top coins to have retained the most gains attained in Q1.
