TRX: Reasons Behind Growth and Popularity

The cryptocurrency market has been struggling since the beginning of the year. Bitcoin fell under the $20k level at one point, whereas Ethereum was struggling to stay above $1,000. 

While most of the market has been following this downturn, one cryptocurrency hasn’t experienced such harsh market conditions. Tron has been performing remarkably well in this bear market, registering an uptrend since it reached a local bottom in January 2022. 

So, you must be wondering what is causing TRX to conserve its value so well during this bear market. This article will clarify the reasons behind Tron’s positive price action. It will provide some fundamental analysis of the coin and its network, and explore the latest developments of the platform. 

Moreover, we will take a closer look at the TRX price action. That will allow you to make an informed decision on when to convert TRX to ETH for some decent profits. 

Overview of TRX

Tron is the invention of crypto marketing prodigy Justin Sun. The network was released to the public in 2017, right before the extremely bullish crypto cycle of that period. The Tron network is a smart contract-capable, delegated proof of stake platform. It provides scalable solutions for deploying decentralized applications. 

In this regard, it was created to compete with similar platforms like Ethereum, by providing a cost-effective and sustainable alternative. Tron’s DPoS platform allows users to stake their coins with select validators (super representatives) and receive rewards for their trust in the platform. 

Tron started as a niche platform for creating gambling dApps but has evolved into a full-fledged DeFi powerhouse. The platform now hosts hundreds of decentralized applications. These include exchanges, swaps, lending platforms, games, and NFT marketplaces. 

The low transaction fees have equally been quite beneficial for users and the growth of the platform. Popular stablecoins like USDT and USDC run as TRC-20 tokens on its protocol. They provide quick and cost-effective payments for users and merchants. 

TRX Technicalities

The TRX cryptocurrency is the native token of the platform. Its major use case is to serve as a means of payment for gas fees when deploying dApps and interacting with smart contracts. Additionally, TRX tokens are used to incentivize validators and allow users to vote and participate in the governance of the platform. 

At first, TRX was launched on Ethereum and ran as an ERC-20 token on the network. However, in 2018, Tron launched its proprietary blockchain and adopted a new token protocol, the TRC-20. Just like on Ethereum, this protocol allows developers to launch their own tokens. 

During the bull run in 2018, the price of TRX skyrocketed to $0.22, an all-time high it hasn’t yet managed to break. That said, the price came close to this level in 2021, when TRX reached $0.16. The subsequent crash has brought prices lower, but the trend is flipping to the upside once more as the toke trades around $0.07 at the time of writing. 

Why TRX Performs Well?

What events allowed TRX to hold its value so well, where other tokens have lost 90% or more of their value during this bear market? The answer is quite simple — the team is continuously building new solutions. After six years in the market, the Tron network is finally reaching a point of maturity where serious projects start using it extensively. 

A major turning point was the creation of TRC-20 stablecoins on the platform. These have brought large amounts of liquidity to the project and increased usage of the network. The network has expanded exponentially. It onboarded millions of new users onto its ecosystem in the past couple of years. BitTorrent, ApeNFT, WinkLink, JUST, and SUN.io are just some of the many successful projects that run on the network and continuously register an increased number of users. 

Final Take

Tron is a useful platform that is reaching maturity in regard to its smart contracts and dApp deployment. Major players in the blockchain space like USDC are using the network, increasing Tron’s credibility. This has resulted in an upside momentum for the TRX price, despite the rest of the market experiencing a stark downfall. 

What’s more, purchasing TRX has become easier throughout the years. Today, almost every reputable platform, including Godex exchange, offers the TRX token in their listings, providing increased investor exposure to this digital asset.