Tron (TRX), today the ninth-largest cryptocurrency by market capitalization, has for the first time attained deflationary status, illustrating rising traffic on its formerly pre-eminent blockchain for DeFi applications.
In the past year, according to the Lookonchain analytical service, the TRX circulation supply has shrank by 2.41 billion tokens or $381.2m at today’s rate.
This is equivalent to $ TRX deflation rate by 2.93%, from 88.97 billion to 86.56 billion TRX. The reduction of supply can be associated with the network’s resource-burning mechanism.
Tron Price Stability
Similar to Ethereum’s EIP 1559, Tron requires users to burn TRX to transact during scarce network availability. This process is potential to fight against inflation and potentially limit usage, accidental, or even malicious on the network.
According to Justin Sun the founder of Tron and the latest Prime Minister of Liberland – this trend will continue and he said: “Keep going,” in reference to the deflationary prospects of TRX.
The present price of Tron is $0.16 with an increase of 1.86 over the last 24 hours albeit an invariant trade volume in the latest days. The cut in supplies may afford additional support to price stability; nevertheless, it is rather early to comment on repercussions that can longer-term prices will have.
Another factor behind the renewed activity of Tron is the no-code meme coin launcher called SunPump. It established more than 90 thousand meme coins, which had attracted around thirty-five million TRX in the network fees. In its peak month, August 2024, the daily amount of fee generated from SunPump was at 3.6 million TRX.
Although the users’ activity halved in the subsequent months, there is still interest grouped around meme coins. For enhancement of activity, the team of SunPump has recently revealed an 888 TRX Airdrop campaign to be carried out.
