In a world where digital currencies reign supreme and technology advances at breakneck speed, Tron (TRX) has entered the scene as a formidable player, challenging Ethereum’s (ETH) dominance and becoming among the dominant forces in the cryptocurrency market.
Tron’s lightning-fast transactions and minimal fees have made it an investor favorite, attracting an increasing number of investors and enthusiasts. According to Google Trends, Tron has now edged Ethereum in terms of social interest, cementing its position as a sought-after crypto.
This increased interest could be the result of a host of factors, such as the network’s distinctive attributes and advantages, favorable media coverage, or increasing adoption by individuals and businesses.
Image: The Daily Hodl
In the blockchain sector, two major token standards are TRC20 and ERC20. ERC20 is an Ethereum blockchain token standard, whereas TRC20 is a Tron blockchain token standard. For the creation and use of tokens on their respective blockchain networks, both standards have been widely adopted by developers and consumers.
Recently, interest in its token standard, TRC20, has grown in comparison to Ethereum’s ERC20 standard. A keyword comparison between TRC20 and ERC20 demonstrates a huge increase in the search volume for Tron’s token standard.
Despite the fact that TRX’s price volatility has decreased, its trading volume has been likewise down, which is cause for concern. This downward trend in trading volume could be interpreted as an indication of an impending price correction.
TRON (TRX) Slightly Up In The Last Week
At the time of writing, TRX was trading at $0.0673, up 1.0% in the last 24 hours and 2.3% over the last week. The cryptocurrency is up 5.5% on a biweekly basis and 14% on a monthly basis, data from crypto market tracker Coingecko shows.
Source: Coingecko
It is essential to note that market corrections are common in the cryptocurrency market and can occur quickly and unexpectedly, resulting in a substantial price decline.
Token Terminal, a platform that provides insights and analytics on crypto projects, has reported that Tron’s development activity has significantly decreased. In the last 30 days, the number of active developers on the Tron network has decreased by nearly half.
Lack Of Development Activity
This decline in developer activity may signify a lack of future Tron protocol updates or upgrades. Without regular updates, Tron may struggle to keep up with the competition and meet its users’ changing requirements. The lack of development activity may also indicate a decline in community engagement, which is essential for the success of any blockchain project.
In addition, daily activity on the Tron network has decreased by 12.0% over the same time frame, which may indicate a decline in network adoption and utilization. These factors may cause investors and consumers of Tron to be concerned about the future of the network.
TRX total market cap now at $6 billion on the daily chart at TradingView.com
In the meantime, Tron’s weighted sentiment has been steadily rising, indicating that the cryptocurrency community has a positive outlook on TRX. Some analysts believe that the recent behavior of whales, who have demonstrated a growing interest in TRX, may be one of the reasons for its price appreciation.
However, the concentration of whales holding TRX could contribute to network centralization, which could be worrisome for retail investors. If these whales decide to sell their positions, the coin’s price could decline dramatically, resulting in significant losses for coin holders.
-Featured image from GoodReturns