TRON (TRX), a lesser-known cryptocurrency compared to Bitcoin, Ethereum, Cardano, and Dogecoin, made a lot of noise in April 2021 when the Tron Foundation announced that the asset had successfully jumped into the era of deflation.

In doing so, TRON managed to become the world’s first deflationary virtual currency, reducing its total supply by more than 5.7 million, from 101,678 billion to 101,673 billion.

The parent company of the cryptocurrency shared that the asset’s move from inflation to deflation took place after its community reached a consensus to make TRX a deflationary alternative currency.

Since then, from October 28, 2021 to October 12, 2022, the cryptocurrency has maintained its deflated state for 50 weeks and closed for a full year.

Source:TRONSCAN

The milestone was revealed in a tweet by TRONSCAN, TRON’s official blockchain explorer, on Oct. 17.

But as that era for TRON ends, analysts and pundits are keen to see how it will help cryptocurrencies, especially during this bearish time for the space.

TRON makes history, but what is ‘deflationary’ crypto?

Deflationary cryptocurrencies are those that decrease in terms of supply over time, providing a window for the value of each coin to increase even in cases where there is constant demand.

TRON completed its transition from inflationary to deflationary assets when its network community agreed to the introduction of a burning mechanism that was meant to reduce its supply as time went on.

On August 14, 2021, the total number of TRX tokens minted reached 5,273,312, but that number does not compare to the total number of burned coins that peaked at 1,106,056,407 on May 22, 2022.

Fast-forward to the present, tracing from Coingecko shows that the current total supply of TRX is 101.9 billion, 92.3 billion of which are in circulation.

The asset is currently experiencing a high bid rate of inflation of 38.51%.

A Look at Current TRX Price and Forecast

At the close of this edition, according to data from Coincodex, TRON is trading at $0.0625, painting its tracking charts in green. It has risen 1.41% in the last seven days and 1.15% in the last month.

The next few days will be full of struggle for the asset as it is forecast to see a slight price correction and drop to as low as $0.0620.

However, TRX is seen to bounce back from this as its 30-day price forecast shows it to rally to $0.0695.

Sentiment towards the first deflationary cryptocurrency is neutral as 15 of its technical analysis indicators are sending bullish signals. On the other hand, 14 of its indicators point to bearish momentum.

It remains to be seen how TRON will be affected by the end of its deflationary state, considering that the supply of a cryptocurrency plays a vital role in its price movement.

TRX Market Cap at $5.8 Billion on the Daily Chart | Zipmex Featured Image, Chart: TradingView.com Disclaimer: Analysis represents the personal views of the author and should not be construed as investment advice.





This post TRON (TRX) makes record for past period in deflationary state

was published first on https://www.newsbtc.com/news/tron-makes-record-for-period-spent-in-deflationary-state/

Author

Write A Comment