Like the rest of the market, Tron (TRX) has taken a huge hit today, following news of the Bancor exchange hack. Tron (TRX) has dropped by over 10% in the day, and is headed lower. However, one thing that stands out about Tron (TRX) is that even during the recent rally that saw bitcoin (BTC) rise from $5700 to $6700, its price remained relatively depressed.
Actually it continued to drop, and closed last week at a low of $0.036. This can be interpreted to mean that there is very little buying momentum in Tron at the moment, and has been so, since the project launched its main net. This can make an investor question whether Tron is a good investment.
To clearly decide whether Tron is a good investment or not, you first need to define yourself as an investor. Are you are short-term, or a long-term investor? If you are a short-term investor (hoping to make huge returns in a few days or weeks) then TRX might not be the best investment for you. However, if you are a long-term investor, then Tron is probably one of the best cryptos to put your money in at the moment. That’s because it is highly undervalued, relative to its fundamentals.
One of the reasons why Tron (TRX) has dropped hard is because of market psychology. Most short-term traders put their money in cryptos that have some huge news coming up in a few weeks to a month. After that, they withdraw and move on to other projects. This explains why there was a run up in price prior to the Tron main net launch, despite the fact that the rest of the market was in deep bear territory.
Then after the main net was a success, the price started going down, as short-term speculators moved their money elsewhere. However, the intrinsic value of Tron (TRX) actually went up after this launch. That’s because developers can now launch Dapps on the Tron network. Over time, as projects begin to launch on this blockchain, the price will rise.
On top of that, Tron is aiming to do something that no other crypto project is working on, and that’s to create a decentralized internet. While this is a huge challenge, it is also a big deal, one that could see the value of this crypto skyrocket by a huge margin. That’s because the internet is huge, and heavily centralized at the moment. As such, any blockchain project that will pull this off stands a huge chance for growth. Given that Tron has set its eyes of this goal, and has made steps with the purchase of Bit torrent, it has a headstart on this front.
Therefore, from a long-term perspective, Tron (TRX) could trade at as high as $5 in the future. It has the fundamentals to achieve it, including high scalability, and low transaction costs. It is a worthy opponent to Ethereum (ETH) and over time, this will show in its value.