Tron price remains in a bear market after plunging by almost 50% from its highest point in December this year. The TRX token was trading at $0.2315 on Friday, down from last year’s high of $0.4497. This decline has brought its market cap from over $36 billion in December to $22 billion today. Still, this article explores why Tron is one of the best crypto to buy.
Tron is the most profitable chain
The most important bullish case for Tron price is that it has now become the most profitable chain in the crypto industry by far. Only Tether, a stablecoin, is making more money than it.
Data shows that Tron’s network has made over $702 million this year. This makes it a more profitable chain than other popular networks like Ethereum, Solana, and BNB Chain. It is also more profitable than other large players in the crypto industry, like Circle, Jito, Uniswap, and Lido DAO.
Tron makes most of its money from its stablecoin transactions. Data on its website shows that it handled Tether (USDT) transactions worth $61 billion on Thursday, a 20% drop from a day earlier. It is not uncommon for Tron to handle over $100 billion a day. As such, it often handles more money a day than other networks like Visa and Mastercard.
Crypto users prefer handling their Tether transactions using Tron because of its substantially low fees.
With stablecoin usage growing, there is a likelihood that the Tron ecosystem will continue thriving in the coming months.
Read more: Tron price prediction: where technicals meet good fundamentals
Tron is highly deflationary
Another reason why Tron is one of the best cryptocurrencies to buy is that it is highly deflationary. This means that, while new TRX tokens are coming online, many more are removed through th burning process. Tronscan data reveals that about 5,067,392 new Tron tokens are released each day. This is a much lower figure than the over 8.4 million tokens that are burned every day.
Data shows that the Tron supply peaked at over 101 billion in 2021, a figure that has now dropped to about 95 billion. This is good as it helps make TRX tokens scarce and more valuable.
Tron supply has fallen
Tron’s inflation metrics differ than other networks that release thousands or millions of tokens each day. For example, Solana has a circulating supply of 510 million SOL coins against a total supply of 596 million. That explains why it releases thousands of new tokens each day.
On top of this, Tron is one of the most-held cryptocurrencies. It has over 3 million active accounts, much higher than other cryptocurrencies.
Tron price may also benefit from its growth initiatives, such as its investment in the meme coin industry. It also seeks to gain market share in the Real World Asset (RWA) tokenization industry.
Tron has also developed a good relationship with Donald Trump after Justin Sun invested in his World Liberty Financial (WLFI). WLFI has now invested in Tron, while the Justice Department has ended its lawsuit against Sun.
Tron price technical analysis
TRX price chart by TradingView
The daily chart shows that the TRX price has remained in a tight range in the past few months. It has remained below the 50-day and 100-day Exponential Moving Averages (EMA).
Most notably, Tron has formed a falling wedge chart pattern comprising of two descending and converging trendlines. These two lines are nearing their confluence now.
Therefore, the price of TRX will likely have a strong bullish breakout with the next point to watch being at $0.45, the highest point in 2024, which is about 92% above the current level.
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