In April 2023, Walt Disney introduced the “Tron Lightcycle Run,” - a new rollercoaster that promises the most exciting ride for thrill seekers. But the TRON we shall be discussing today is a crypto asset. Like the Disneyland new rollercoaster, the TRON platform is set to disrupt the entertainment industry.
Regardless, both can be correctly described as rollercoasters because of the undeniable thrills and excitement. Tronix (TRX), the native token of the TRON platform, experienced over 200% surge in market price in the past 12 months. The TRON platform is a distributed storage technology that allows easy and less expensive digital content sharing.
Now, this is definitely an exciting crypto asset. This guide will explore TRON, its fundamentals, price catalysts, trends, and future predictions. Let us dive in!
Overview of TRON cryptocurrency
a. TRON is a blockchain-based decentralized platform focused on content sharing and entertainment
TRON was founded by Justin Sun in 2017 but was met with some criticism due to its use of already established features like decentralized applications (dApps), smart contracts, and proof-of-stake consensus. However, many others approved of its concept as it allowed for a focus on improving user experience.
TRON gained mainstream attention in 2018 when the Tron Foundation acquired BitTorrent- a peer-to-peer content-sharing platform. The first principle of the platform is decentralization. A central body controls none of the data on the blockchain, and content creators can earn TRX when they post content.
Additionally, content creators can mine TRX, which can be used within their decentralized apps (dApps) on the platform. The platform runs on a proof-of-stake mechanism. A new block is added to the Tron blockchain every three (3) seconds, and the reward for each block is 32 TRX tokens.
b. TRX Tokenomics
TRX coin is the 10th largest crypto with a $6.5 billion market cap and $2 billion daily volume. The supply of TRX is capped at 100 billion. The Tron Foundation was issued 34 billion TRX and 15.75 billion to private sale investors. Justin Sun’s company received 10 billion TRX and 40 billion TRX to ICO investors.
Despite being a relatively new project, the impressive market cap and daily trading volume of TRX indicate growing investors’ confidence.
The TRON platform is set to follow a roadmap that spans ten years:
● Exodus phase (2019): establishment of the platform and its consensus mechanism
● Odyssey phase (July 2020): introduction of incentives to encourage content creation
● Great Voyage phase (August 2021): launch of TRON-native ICO capabilities
● Apollo phase: issuing of personal token and expected until April 2023
● Star Trek phase: anticipated to October 2025, breaking into the decentralized gaming ecosystem
● Eternity phase: disruption of the gaming industry and estimated to run until October 2027
c. TRON aims to disrupt the digital entertainment industry currently dominated by centralized platforms like YouTube and Twitch
Centralized platforms like YouTube and Twitch currently dominate the digital entertainment industry. Therefore, TRON aims to leverage blockchain to solve the limitations faced by content creators and users of these centralized platforms.
The fundamental issue with centralized platforms is that control is within a central body. Therefore, they can dictate the terms of monetization and content distribution. However, TRON seeks to provide an alternative solution that offers greater autonomy to content creators via the decentralized structure.
Blockchain technology provides direct interactions between content creators and target audiences. Therefore, creators have greater control of their content and how it is distributed and monetized. These content creators can build a strong community and establish a great bond with the fans without relying on a central system for a fair commission.
Additionally, TRON offers a transparent ecosystem. The nature of blockchain ensures transparency in content ownership, which reduces the risk of fraud or unauthorized use of content. TRON has a smart contract feature that facilitates automated and transparent agreements to ensure fair compensation and intellectual property protection.
With its disruptive approach, TRON aims to make an impact by providing a more inclusive environment for the digital market industry. Although the centralized platform is currently dominating, TRON offers greater opportunities for content creators. However, as the TRON platform continues to grow, it will have a greater impact on the digital entertainment industry and pave the way for the wide acceptability of a decentralized ecosystem.
Recent Price Trends
i. The 2017 cryptocurrency boom and TRX price
The general market performance in 2017 was crypto investors made significant profits. TRX also experienced over 8,000% surge during the crypto boom. Major coins like BTC reached its first all-time high in 2017. The boom could be attributed to increased enthusiasm and confidence in the future of the crypto industry.
However, this surge did not last, as TRX’s price crashed. The price of TRX was suddenly declining until it made a 40% increase. TRX fell over 90% from its all-time high, vastly underperforming major coins in the market.
ii. Impact of the 2020 COVID crisis on the price of TRX
The 2020 Coronavirus was a global pandemic that affected even the best economies. Many people began to seek alternatives to earning money and storing wealth. Therefore, the crypto industry, which operates on a decentralized system, became the most efficient alternative.
Big names like BTC experienced a sharp increase within the first few months of the pandemic. The panic also fuelled a TRX rebound with 100%+ gains. However, this was still about 70% lower than its all-time high value.
iii. Volatility challenges
Volatility is the rate at which the price of TRX changes, and its price history indicates high volatility. Huge volatility highlights the risky and speculative nature of TRX. The significant price fluctuations during boom periods and drastic corrections demonstrate the high risk associated with TRX.
As a result, this is a challenge in valuing the project. Various factors play significant roles in determining the market value of TRX. They include market trends, technological advancements, regulations, and market sentiments. The speculative nature of TRX may pose a challenge in identifying the project's long-term sustainability.
Project Fundamentals
a. High throughput for decentralized apps (dapps)
TRON has a fast, scalable blockchain with high throughput for decentralized apps (dapps). The ecosystem was designed to be a high-speed, low-cost platform for decentralized applications (dApps) and DeFi (decentralized finance) purposes. TRON uses the DPos (Delegated Proof of Stake) consensus mechanism, which facilitates efficient validation of transactions. Scalability and performance are critical for supporting projects to ensure exceptional user experience.
Over 2,000 transactions per second are processed on the network, which is a significant difference from other projects. This speed of transaction makes the platform an excellent choice for developers. In addition, TRON offers various development tools to facilitate the creation of unique DApps. Some tools include TronBox, TronGrid, TronStudio, and the TronWeb API library.
Furthermore, developers can benefit from the active community, a thriving ecosystem of DeFi & dApps projects, and support for various programming languages such as Java, Python, and Solidity.
Regardless of TRON’s exceptional features, the growth of the ecosystem has been slow. Since it is a relatively new ecosystem, widespread adoption has been gradual. However, some projects hosted on the TRON platform include JustSwap, Wink, Kraftly, Luminous, and more.
b. Founder Justin Sun is a controversial figure
Justin Sun is arguably one of the most controversial people in the crypto industry. He is associated with an aggressive marketing strategy that involved hyping announcements associated with TRON. Many critics claims he lacks technical expertise, so he has to rely on sensational promotion to create a buzz for TRON.
Marketing is a critical aspect of any crypto project as it plays a significant role in adoption and awareness. However, Justin Sun’s approach is not technical, as it does not cater to the project's long-term viability. Many have questioned the intention behind the buzz and whether it aligns with the TRON network's progress.
Therefore, Sun’s frequent controversial actions have led to skepticism and praise. Some view his marketing efforts as effective in increasing awareness and adoption of TRX. On the other hand, critics suggest that the grandiose marketing strategy is to divert investor focus to ongoing developments instead of the technical foundation of the network.
c. TRON targets a large addressable market
While TRON targets a large addressable market, competitive threats are significant, and use cases for the token remain limited. The target of TRON is the digital entertainment industry, which is a lucrative and addressable market. The traditional industry is dominated by centralized bodies, so TRON has a unique opportunity to disrupt this space. TRON seeks to provide decentralized solutions to content creators.
Despite the unique solution offered by TRON, it faces significant competitive threats. Centralized platforms like YouTube already have a strong user base and brand recognition, which makes it challenging for TRON to gain dominance in the market. People often stay with the known option- therefore, convincing users to transition to a decentralized alternative is not easy.
In addition, TRON’s use cases remain limited, which may be discouraging to potential investors. TRX is used to power the platform as well as online games and projects hosted there. Content creators on the platform are paid with TRX. Moreso, the token can be locked, which acts as the governance power of the holder.
Price Catalysts
The price of TRX is influenced by various factors. These factors can stir market sentiments and increase investors’ confidence. Some of these factors include:
i. Mainnet launch, protocol upgrades (e.g., decentralized exchange), and dapp releases
Events like the mainnet launch, upgrades, and release of dApps can act as a catalyst for the price of TRX. These developments generate optimism in the community, which can lead to increased participation and a potential increase in the value of TRX. However, these increases in price usually last only for a short time, as the gains are often unsustainable. Once the hype around the event reduces, TRX experiences price correction.
For example, TRX experienced a 19% price surge when Justin Sun announced the launch of the mainnet in 2018. The year 2021 did not come with any technological upgrades on the TRON network, so there was no significant price increase. However, in June 2023, Justin Sun took to social media to announce the integration with Ethereum integration via BitTorrent. As a result, the price of TRX experienced a price jump within the next few days.
ii. Partnerships and collaborations
Partnerships and collaborations are quite important in the advancement of crypto assets, which includes TRON (TRX). They are accompanied by the hype that may trigger increased market participation and price uptrend. Some partnerships only aim to increase the buzz around TRON without offering any meaningful utility.
Critics have argued that partnership with TRON tends to be more hype than substance. As a result, it has a limited impact on the market value of TRX. Therefore, investors must be able to differentiate between strategic partnerships that enhance TRX’s functionality and those that are for promotional purposes.
For example, the market value of TRX experienced an uptrend when they announced a partnership with Huobi blockchain.
Notable collaborations and partnerships on the network include:
● TRON has collaborated with the largest bike rental company in Southeast Asia, oBike.
● Bitman, a leading manufacturer of ASIC chips used for Bitcoin mining
● Zag-S&W, an international business and corporate law firm, has also collaborated with TRON.
iii. Regulation
Regulation is a critical factor that can affect adoption and sentiments regarding a crypto asset like TRON (TRX). Positive regulations can boost investor confidence and increase the use of TRX. On the other hand, unfavorable policies may have an adverse effect on the market value of TRON.
Regulations could severely curb the hype and speculation that has fueled past rallies. However, increasing adoption could translate to increased legitimacy. The primary goal of regulations is to prevent market manipulation, fraud, or illicit activities within the crypto industry. Therefore, some governments have implemented policies to protect investors and ensure compliance.
However, it is important that investors recognize that regulations may differ across various states and countries. Therefore, the impact of regulations on the price of TRX varies in different regions.
One of the challenges with the crypto market is uncertainties. Regulatory clarity provides a sense of security for investors. As a result, more investors and partners are encouraged to engage with TRX, which may lead to broader market adoption.
Price Prediction
It is critical for investors to remember that TRX is highly volatile. Therefore, predictions may not always follow the anticipated trajectory. Price predictions are often generated using an algorithm. Several factors could potentially affect the market value of TRX, so experts and programs could produce wrong predictions.
❖ The current trend – 2023 TRX price prediction
Although it is challenging to provide an accurate range, experts predict that TRX could experience a $0.05 to $0.10 market value. The minimum predicted price was $0.048, while the maximum was $0.13. The current market value of 1 TRX in July 2023 is $0.06.
These predictions are based on historical data and potential developments within the TRON ecosystem. However, investors must note that TRX is highly volatile, and the price is affected by various factors.
❖ 2024 Price predictions
After 2023, what does the future of TRX hold for the coming year? It is estimated that the price of TRX will be within the range of $0.10 to $0.20. Bear in mind that several unexpected factors could play a role in causing an increase or decrease in the price of TRX by 2024.
Therefore, it becomes critical to consult financial experts that can provide guidance. In addition, conduct thorough research before investing your capital in TRX, and stay abreast of critical news and updates. TRX is expected to close the year at a price range of $0.20 to $0.35.
❖ 2025 price forecast
The long-term performance of TRX is shrouded by uncertainties, largely due to its highly volatile nature. Factors like adoption, market trends, technological advancements, and dApp growth are critical to the future of TRX. Market analysts project that the price of TRX in 2025 will be within the range of $0.20 and $0.50. This is a more conservative projection as other projections indicate that the TRX has the potential to increase to a range of $0.75 and $1.
It is critical to bear in mind that the actual price of 2025 may look nothing like the projections. Therefore, investors should not be too carried away and optimistic due to price forecasts. They are not practical investment advice but simply a template for making decisions.
Irrespective of the price forecast generated by any algorithm, it is critical to exercise caution. Conduct fundamental and technical analysis to help you navigate the uncertainties associated with the future of TRON.
Conclusion
TRON is a unique blockchain platform that aims to revolutionalize the digital entertainment industry. The future holds numerous possibilities for the TRON network, especially with significant partnerships and technological advancements.
TRON stands out in the sea of blockchain networks due to its high throughput and low transaction costs. The platform also has several tools that support the development, testing, and launching of dApps and DeFi.
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