Tron (TRX) has made huge strides in the recent past, that with no doubt make it one of the strongest platform blockchains in the market today. It has successfully launched its own main net, launched a Tron virtual machine, and recently made an acquisition that gives it access to more than 100 million users.
However, even with all these developments, Tron (TRX)’s price seems to be tanking by the day. While this can be blamed on the crypto bear market, Tron (TRX)’s price has continued to fall, even after the recent rally that saw bitcoin rise from $5700 to over $8000. Ideally, this rally should have pushed up Tron (TRX) since the project has made some huge announcements within the rally period. So why is Tron’s price not rising, or better still, what can trigger a price rally that would make Tron (TRX) investors happy in the long run?
Well, while the price will ultimately rise as fundamentals get priced in, the issue of coin supply is a major issue for Tron (TRX). Tron has a coin supply of 99 billion, and this could be a major hindrance to its long-term price growth. That’s because while coin supply does not necessary have an impact on price, as was seen with XRP in 2017, the fact remains that it is still a factor that cannot be discounted. It is only with a reduced coin supply that Tron (TRX) would rise to the price levels that many analysts like to throw around such as $10, $50 and even $100.
Otherwise, such price levels are not that realistic with a coin supply of 99 billion. For instance, for Tron (TRX) to hit a valuation of $10 with its current supply, it would have a market capitalization of 990 billion. That’s several times higher than the current total market cap of all cryptos combined. It would also mean that other cryptos such as bitcoin (BTC) would have a market cap of over $20 trillion, a market cap that is way larger than the U.S economy. Not that realistic, is it? However, if Tron were to burn coins and be left with a coin supply of say 100 million, getting to a valuation of $100 and above would be very much possible. Tron has the fundamentals to give such a valuation, and without the requirement of an unrealistic market capitalization.
So will Tron (TRX) do a coin burn? Well, no one knows, but it could be a possibility in the future. Justin Sun constantly gets hit with this request on his twitter feed, and since Tron is a highly interactive community, there is a good chance that it could be put into consideration at some point in the future. Otherwise, all investors can do at this point is hope.
But even without a coin burn, Tron (TRX) is still a good investment. It may not rise to $10 tomorrow, but it has a realistic chance of rising to $0.50, which is a huge return for an investment made at current prices.