The TRON (TRX) price has weakened after it moved up to its highest level since May. The cryptocurrency recently surpassed 51 million accounts and has announced new development projects.
What are some of the reasons why TRON is going up? And is there scope for the price to move up further?
In this article, we look at the project’s latest developments and the outlook for the TRON future price based on the recent forecasts.
TRON developing an NFT marketplace
TRON was founded in 2017 by Chinese entrepreneur Justin Sun, a former chief representative for the Ripple cryptocurrency (XRP) in Greater China. The decentralised TRON platform focuses on file sharing and entertainment content. TRON acquired the file sharing network BitTorrent in 2018. BitTorrent launched its own native cryptocurrency, BTT, in February 2019 on the TRON blockchain, using its TRC-10 standard.
Data from Tronscan shows that the total number of TRON accounts has surpassed 51 million, with more than 2 million transactions processed daily.
On 25 August, there were 71.66 billion TRX coins in circulation, of a total supply of more than 100.85 billion. The company has a market capitalisation of $6.03bn, according to data from CoinMarketCap, ranking it the 27th largest cryptocurrency by total value.
As of 20 August, there were more than 10 million accounts holding BTT – 20% of the total accounts on the TRON network.
On 18 August, data from the CryptoRank blockchain data platform showed that the total TRON coin value locked on the TRON public blockchain broke $10.1bn, ranking it third behind the Ethereum and Binance Smart Chain (BSC) blockchains.
TRON uses three-layer architecture – a storage layer, core layer and application layer. There are several modules in the TRON core layer, including smart contracts, account management and consensus, according to the company’s white paper, which offers TRON potential for growth. TRON runs on a Delegated Proof-of-Stake (DPoS) consensus in which there are 27 super representatives (SRs) that produce blocks on the chain. Every six hours, TRX account holders can freeze their accounts and vote for SRs. The protocol generates a new block every three seconds, and each block awards 32 TRX to SRs. This process allows for faster throughput than some other blockchains.
Developers can create distributed applications (dApps) and customised wallets on the blockchain. Smart contracts enable TRON to develop non-fungible tokens (NFTs). The developers announced on 23 August that TRON has made a strategic investment of an undisclosed amount in the DeFine social NFT platform. The funding will be used to develop “the first NFT marketplace in the TRON ecosystem and launch auctions soon”.
TRON also announced that the network’s BTFS file storage system will integrate with DeFine in September. And TRON plans to expand its NFT ecosystem with APENFT.
The TRX price reached an all-time high of $0.3004 on 5 January 2018 during a strong rally in cryptocurrency prices. The markets subsequently collapsed, with TRX ending the year around $0.01. The TRON trend bottomed at $0.0088 on 12 March 2020, turning higher to reach $0.02 by the end of the year, and then bursting up to a peak of $0.1799 on 17 April as cryptocurrency markets rallied.
The price dropped to a low of $0.0468 on 22 June, rose to $0.0698 on 29 June and then slipped back to $0.04917 on 20 July before the recent rally. TRX reached $0.0951 on 15 August, its highest price since 19 May, then softened to trade between $0.81 and $0.91 in the past 10 days.
So, what is the future of TRON? What price do the latest forecasts indicate?
TRON (TRX) price prediction: can the price return to all-time highs?
TRON technical analysis from CoinCodex was neutral, with the coin trading around $0.0839 at the time of writing (25 August). There were 18 bullish indicators and 12 indicators giving bearish signals.
The moving average convergence divergence (MACD) and momentum indicators were neutral, while the relative strength index (RSI) was 72.20, indicating that TRON was a sell. An RSI number above 70 indicates an asset is overbought, while a number below 30 indicates it is oversold. CoinCodex predicts that the TRON price will drop by nearly 8% to $0.0769 by 31 August.
The TRX/USD forecast from forecasting site Wallet Investor is bullish, projecting the price will rise from $0.0895 at the start of September to $0.116 by the end of 2021. It then estimates the price will reach $0.173 by the end of 2022 and pretty much double to $0.344 by the end of 2025.
DigitalCoin’s TRON price prediction also anticipates that the price will rise, but at a slower rate. It forecasts that the price will average $0.1313 in 2021, rising to $0.1469 in 2022 and $0.2393 in 2025. For the longer term, it projects the price will average $0.3701 in 2028, peaking at $0.4121 over the period.
The TRON coin price prediction from Coin Price Forecast suggests TRX will remain below $0.30 until the end of the decade. It projects that the price will end 2021 at $0.0913, rising to $0.1331 at the end of 2022, but then stabilising around the $0.16 level from 2023 to 2025. The algorithm predicts the price will resume its rise in the second half of the decade, reaching $0.2896 by the end of 2030, and trading above $0.30 in the years to follow.
It’s important to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and online forecasting sites can get their predictions wrong. We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decisions. And never invest more than you can afford to lose.
Where to buy TRON (TRX) in 2021
If you are looking to invest in the coin for a long-term, you can buy it via cryptocurrency exchanges like Poloniex, Bancor, KuCoin and Binance. You can then transfer your TRX coins to a hardware or electronic wallet for safe storage. Alternatively, you can trade TRX with contracts for difference (CFDs) on Capital.com.
CFDs allow you to speculate on short-term price fluctuations without having to buy the actual coin. Trading CFDs offers the opportunity to try to benefit from both bullish and bearish price action. If you expect the TRX price to rise, you can open a long position. If you think it will drop, you can open a short position – and still make a profit on the trade if the price moves lower.
TRON to US Dollar - TRX/USD CFD
As a leveraged product, CFDs are designed to maximise gains, which can be large on volatile products such as cryptocurrencies. However, you should be aware that using leverage also increases the size of the loss should the price moves against your position.
Make sure you understand how CFDs work and do your own research before you begin to trade. And never invest money you cannot afford to lose. Learn more about cryptocurrency CFDs with our comprehensive guide. Create an account on Capital.com to stay on top of the latest TRON news, price analysis and forecasts, and spot the best trading opportunities.
* Note that CFD trading on cryptocurrencies is currently not available in the UK under FCA regulations.
Whether TRX is a good investment depends on your personal circumstances, risk tolerance and the composition of your portfolio. It is vital that you do your own research before investing in any asset, including cryptocurrencies.
The direction of the price is influenced by sentiment on the broader cryptocurrency markets, offering potential for the price to rise further if the cryptocurrency rally continues. Forecasting sites predict that the TRX price will trend higher over the coming years. However, keep in mind when reading these estimates that analysts and online forecasters’ predictions can be wrong. Which forecasters you choose to believe is down to your own research and view of market conditions.
Based on current price projections, the TRX price is unlikely to reach $1 in the next decade. The highest price forecast is $0.42 from DigitalCoin.
Like any cryptocurrency, TRX is a high-risk investment that also has the potential for high returns. Cointobuy gives TRON a safety rating of 6 out of 10. It’s crucial that you understand the risk of investing in cryptocurrencies before you get started, and never invest money that you cannot afford to lose.