TRON Burns 10 Million Tokens, But Will It Drive TRX Price Up?

• Tron (TRX) reaches a new milestone in its deflationary strategy as it burns 10 million TRX to subject the circulating supply to a huge decrease. 
• The 2022 TRX’s total supply of 101 billion has been steadily reduced to 86.56 Billion TRX with the annualized deflation rate currently around 2.93%. 

Tron’s (TRX) deflationary strategy is still on course as the network burns a whopping 10,136,282 TRX out of circulation. According to our research, the production ratio has reached negative (-5,069,243) with $809,558.11 permanently removed from the system. Meanwhile, Lookonchain data confirms that the token’s supply has significantly reduced from 88.89 Billion to 86.56 Billion in the past 12 months for a total annualized deflation of 2.93%. In 2022, the total supply of TRX was around 101 Billion.

Over the past year, $TRX supply has decreased from 88.97B to 86.56B, a decrease of 2.41B $TRX($381.2M).$TRX is in deflation with a rate of -2.93% over the past year. pic.twitter.com/LNG0f35Nav— Lookonchain (@lookonchain) October 11, 2024

The deflationary token narratives of Tron, according to our investigation, are quite similar to the schedule of burns used by Binance Chain to achieve the average of 1.1% deflation. Looking at its initial period of execution, Tron started as a High-Supply token and drifted with a minimal price. Later, its utility expanded to include simple transactions, liquidity, etc. Currently, its price has been greatly affected as the TRX’s price closes the gap to reaching its six-year high of $0.3. At press time, the asset was trading at $0.16 after surging by 4% in the last 24 hours.

Tron’s (TRX) Price Analysis

Assessing its current market momentum, we realized TRX’s Relative Strength Index (RSI) was around 57.58, indicating more room for growth until it reaches the overbought territory of 70.0. Its Stochastic indicator also confirms a bullish momentum with a reading of 66.63. According to our analysts, this implies that the asset may not encounter any exhaustion soon, but could extend its upsurge in the near term.

Tron’s daily active addresses have also witnessed a marginal growth of 1.1% in the last seven days, underscoring the value proportion and growing confidence in the asset. Conversely, TRX’s funding rate indicated a cautious approach from investors with a reading of 0.0088%. This current state has been explained to be a state of equilibrium where both bears and bulls could capitalize.

Looking at the current investors’ behavior, we realized that there is a high anticipation of potential volatility in the price as the short positions for TRX, which is 54.11%, currently outweigh the long positions of 45.89%.

In our recent analysis of a post made by an analyst identified as “Wise Advice,” we observed that the asset is poised for a bullish run considering its fundamental strength since the launch of the “SunPump” initiative. According to Wise Advice, Tron-based meme coins could hit a market cap of around $500 million or even $1 billion and could significantly impact the price of TRX.

In August, we also reported on a prediction by analyst “Whales Crypto Trading” which estimated that TRX could surge by 100% to 150% in the near term following the movement from the lower boundary of a weekly ascending channel.

Tron is bouncing from the lower boundary of a weekly ascending channel. This bullish structure projects a 100-150% upward move. Watch for continued momentum as price climbs within the channel.

At that time, TRX was trading at $0.139. With a current price of $0.16, This prediction is almost materializing.