Tron has made a significant achievement this year by becoming a deflationary cryptocurrency in a market where most cryptocurrencies are inflationary. This shift in TRX’s token supply decreasing is a clear indicator of the increased adoption and activity surrounding the TRX token. Several factors have contributed to this milestone.
The Numbers Behind the Deflation
Over the past year, Tron’s circulating supply has decreased by a significant 2.41 billion tokens, equivalent to $381.2 million at current prices. The total supply of TRX now stands at 86.56 billion coins, down from 88.97 billion, resulting in a deflation rate of 2.93% for TRX. This reduction in supply is primarily due to users burning TRX to cover transaction costs when network bandwidth is low on the Tron network. This mechanism, similar to Ethereum’s EIP 1559, helps prevent inflation and ensures the efficient use of network resources.
Justin Sun’s Vision for Tron
Justin Sun, the founder of Tron and now the prime minister of Liberland, predicts that the trend of decreasing supply will continue, which is promising news for TRX token holders and potential investors. However, it is worth noting that the trading volume of TRX has dipped by 5.37% in the last 24 hours, with the token currently trading at around $0.1609, marking a 0.73% increase from the previous trading day.
SunPump: The Meme Coin Craze
A significant driver behind the recent surge in Tron’s activity is SunPump, a no-code meme coin launcher that has facilitated the creation of over 90,000 meme coins. This platform has generated network fees amounting to approximately 35 million TRX, with a peak daily fee generation of 3.6 million TRX in early August. Despite a decline of over 99% in activity over two months, SunPump continues to attract meme coin enthusiasts and recently launched an 888 TRX airdrop campaign to reignite interest.
What’s Next for TRX?
With Tron now established as a deflationary coin, the supply will continue to decrease, creating scarcity and driving value. Innovative projects like SunPump will play a crucial role in pushing TRX for further adoption, promising an exciting future for the cryptocurrency.