TRON (TRX) Makes Record For Period Spent In Deflationary State
3 min read
TRON (TRX), a lesser known cryptocurrency when compared to Bitcoin, Ethereum, Cardano and Dogecoin, made a loud noise in April 2021 when Tron Foundation announced the asset successfully leaped into the deflation era.
In doing so, TRON managed to be the first ever deflationary virtual currency in the world, reducing its total supply then by over 5.7 million, from 101.678 billion to 101.673 billion.
The crypto’s parent company shared that the asset’s move from inflation to deflation was carried out after its community reached the consensus to turn TRX into a deflationary altcoin.
Since then, from October 28, 2021 to October 12, 2022, the cryptocurrency has maintained its state of deflation for 50 weeks and was closed to reaching one full year.
Source:TRONSCAN
The milestone was disclosed in a tweet by TRONSCAN, the official TRON blockchain explorer, on October 17th.
But as that era ends for TRON, analysts and experts are keen on seeing how it will help the crypto especially during this bearish time for the space.
TRON Makes History – But What’s ‘Deflationary’ Crypto?
Deflationary cryptocurrencies are those that decrease in terms of supply over time, providing a window for the value of every coin to increase even in cases where there is consistent demand.
?? $TRX has been in a state of #deflation with the total amount of deflation reaching 9.6 billion #TRX, for 50 weeks (2021.10.28-2022.10.12)!! pic.twitter.com/zc2xiGNc2W
— TRONSCAN (@TRONSCAN_ORG) October 17, 2022
TRON completed its transition from inflationary to deflationary asset when its network’s community agreed to the introduction of a burning mechanism that was meant to reduce its supply as time went by.
On August 14, 2021, the total of TRX tokens minted reached 5,273,312 but that figure failed in comparison to the total number of burned coins which peaked at 1,106,056,407 on May 22, 2022.
Fast forward to the present, tracking from Coingecko shows 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 supply inflation rate of 38.51%.
A Glance At Current TRX Price And Forecast
At press time, according to data from Coincodex, TRON is trading at $0.0625, painting its monitoring charts in green. It is up by 1.41% over the last seven days and by 1.15% over the past month.
The next few days will be full of struggle for the asset, as it is predicted to undergo a slight price correction and fall all the way to $0.0620.
However, TRX is seen to bounce back from this as its 30-day price forecast shows it will climb up 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 towards bearish momentum.
It remains to be seen how TRON will be affected by the end of its deflationary status considering a crypto’s supply plays a vital role in its price movement.
TRX market cap at $5.8 billion on the daily chart | Featured image from Zipmex, Chart: TradingView.com Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.
