Tron (TRX) has slide down a few positions, and is now the 12th largest cryptocurrency on coin market cap. This has got some investors concerned that Tron might be losing its value in the market. However, unless you are a short term speculator, this drop in ranking is nothing to worry about. That’s because the fundamentals of this coin are strong, and in the long-run, they will see this crypto rise up market cap rankings.
One of the factors that will push up the value of Tron in the long-run is its potential to dominate the Dapps space, and overshadow the likes of Ethereum (ETH). That’s because Tron outperforms on every aspect that Dapps developers look for in a platform blockchain. For instance, its transaction speeds are at over 1000 TPS, which is multiples faster than Ethereum, NEO and other bigger platforms. Its transaction costs are also lower, and it’s designed for scalability right from its basics.
This is a major incentive for developers to port over to Tron (TRX). It may not happen today, but in the long-run, Tron has an upper hand, in terms of attracting developers, and increase the number of Dapps on Tron. Tron is nudging developers towards itself, with the upcoming Tron Virtual Machine (TVM) that will be launched on the 31st of July. As the number of Dapps running on Tron increases, it’s ranking on Coin market cap will rise. It could easily rise to the top 5 coins by market cap in under 5 years.
Tron also has the potential to create the decentralized internet, something that is actually part of its long-term vision. They are already making moves in this direction by acquiring bit torrent, the global leader in peer-to-peer file sharing. If in the long-run, Tron (TRX) makes it in creating the decentralized internet, its value will rise significantly, and push it up crypto market cap rankings.
One also needs to look at the long-term prospects of some of the coins that rank higher than TRX and compare them with it. Most of them don’t have the fundamentals that Tron has. For instance, EOS (EOS) launched its main net around the same time as Tron, but it had so many issues. In comparison, Tron’s main net launch and the transition from the Ethereum blockchain has been quite successful. That’s a good indicator of things to come in the future. Basically, fundamental weakness in some of the coins that rank above TRX will see it regain its spot at the top 10, and probably become a top 5 coin in the near future.
That’s why investors who believe in Tron (TRX) need to ignore short-term fluctuations in the value of TRX. Approach Tron the same way wealthy investors approach the stock markets. They are not concerned with short-term value fluctuations as long as the fundamentals are right. They always know that the future holds good things for their assets.