This morning my intention is to do a bit of a deep dive into TRON (TRX or Tronix to give its token its full name) as it's Dutchy Faucet’s coin of the month. It is a coin that has always hovered somewhere at the back of my mind but never really drawn me in. I must be honest I often confuse it with WAX, whose main utility seems to be minting NFTs (and we all know my opinion of NFTs – “Pointless Pixelation”).
Incidentally, last month I managed to attain more than 77,000 SHIB on the same platform currently worth about $0.67. It may well be a ShitCoin (as are all MemeCoins in my opinion) but who knows? If a whale decides to pump it and it hits the lofty heights of half a cent ($0.005) as some analysts have predicted in the distant future, following coin inflation and token burning, and if proven right, that is a nice easy $385.00 for nothing!
So back to Tron…
Although it started as an Ethereum-based ERC-20 token, Tron, founded in 2014 by Justin Sun and launched its own proof-of-stake blockchain in 2018, is a decentralised platform designed for fast, low-cost transactions and the hosting of decentralised applications (dApps) with a special focus on digital entertainment (gaming / streaming), finance and content sharing where it holds a particular attraction for developers who use it to build their applications.
At its core, Tron is aiming to decentralise the web, by eliminating intermediaries between creators and consumers. Meanwhile, some measure of success can be seen in that its utilisation involves millions of accounts, billions of transactions, and as a result it is one of the most actively used blockchains globally.
Further to it reaching into the entertainment / content world TRX is used for transactions and the execution of smart contracts and has strong ties to StableCoins and in particular it hosts one of the largest USDT (Tether) ecosystems, which is second only to Ethereum. This utility enables it to power smart contracts and enable cross-chain swaps by integrating with platforms like THORWallet. Finally as with many such projects its governance is democratised by allowing TRX holders to participate in voting and governance decisions within the TRON network.
* Coinspeaker’s actual prediction is $0.30 to $1.30
So assuming it can break resistance, we can realistically expect a price coming in somewhere above the dollar but probably no higher than $1.50 by 2030, even if some analysts are more optimistic. As I posted about Cardano, this will also represent a fivefold increase – and you may remember my analogy describing how BitCoin has made a similar jump over the last few years?
So, to conclude and summarise, with its low fees and high throughput it is highly competitive, which in turn makes it one of the most used blockchains (and especially for StableCoins) and its real-world usage is strong with its ties to entertainment, content creation, finance and cross chain swaps. And finally, as already commented, its ensuing growth will rely on regulatory clarity, developer adoption, and how it fairs against competition from Ethereum, Solana, and other Layer 1 chains.
