TRON price prediction: What is TRON (TRX)?
How is TRON coping after the ‘Blackest Monday’ in crypto history?
TRON has been garnering attention again over the past few weeks. As the 14th-largest crypto by market cap, TRON’s next steps will have a huge influence on investor confidence in the crypto markets in the coming weeks, and avoiding anything like the Terra Luna fiasco will be a priority for their ecosystem.
TRON has in no way been immune to the recent flash crashes which have seen the total market value slump under $1 trillion. As market selloffs deepened, TRX (one of the predominant assets backing USDD as collateral) plummeted by almost 20% between 12 June and 13 June, in what commentators are calling the ‘Blackest Monday’ in crypto history – and the sister token USDD lost its dollar peg.
In order to “safeguard the overall blockchain industry and crypto market” and defend the USDD peg, on 15 June the DAO Reserve announced the withdrawal of 2.5 billion TRX from the Binance exchange, with the intention of increasing fees for short-sellers. Further to this, the DAO added $500m in USDC to its reserve to bolster the algorithmic stablecoin’s dollar parity.
But how might TRX respond to these events in the coming weeks? We ask: What is TRON (TRX)? What is TRON used for? And what is the TRON price prediction? Let’s see if we can find out.
TRON was founded by Justin Sun in 2017, raising $70m in an initial coin offering (ICO), which led to the TRON Foundation, a not-for-profit company that aimed to help manage and raise awareness of the crypto and its blockchain. Investors were attracted to a concept that aimed to build a free, global, digital content entertainment system with distributed storage technology using a decentralised blockchain network.
TRON works in a similar way to Ethereum, in that the blockchain network hosts dApps (decentralised applications), so creators can choose to avoid working with tech giants such as Amazon and Google.
Like other projects such as Ethereum, which pioneered the use of smart contracts, TRON minted a coin to enable its users to trade and pay hosting fees for their content. The TRON cryptocurrency can also be used as a store of value, and can be bought, sold or exchanged.
The network had some notable business successes, taking over the file-sharing network BitTorrent and signing a deal to integrate TRON’s blockchain with the Samsung Blockchain Keystore in 2019.
TRON was back in the news in December 2021 when Sun was appointed a representative to the World Trade Organisation for the Caribbean island nation of Grenada.
This did not mean that the TRX coin would go away, though. Instead, the future of TRON would now lie mostly in the hands of its users and investors.
From the TRON whitepaper
The whitepaper states: “TRON is an ambitious project dedicated to the establishment of a truly decentralised Internet and its infrastructure. The TRON Protocol, one of the largest blockchain-based operating systems in the world, offers public blockchain support of high throughput, high scalability, and high availability for all Decentralized Applications (dApps) in the TRON ecosystem.”
Describing the architecture, the document states: “TRON adopts a three-layer architecture divided into Storage Layer, Core Layer, and Application Layer. The TRON protocol adheres to Google Protobuf, which intrinsically supports multi-language extension.”
TRON price history
While past performance is never any indicator of future results, knowing how the coin has behaved in the past can give us an insight which can help up when it comes to looking at the TRON price prediction for 2022 and beyond.
TRON debuted in late 2017 and made its owners some quick gains. Early in 2018 it benefited from the boom in cryptocurrency, with its price shooting up from around $0.035 at the end of 2017 to a record high of $0.3004 on 5 January 2018. But within a month its price had pretty much collapsed, and it levelled off between $0.02 and $0.03.
There were some spikes after that, notably one in October 2019 when news of the Samsung deal broke. But even that modest gain proved something of a blip and TRON’s price fell to around $0.01 at the start of 2020. TRX then spent most of 2020 bouncing between $0.01 and $0.03, before 2021 saw another bull run as the cryptocurrency market heated up.
TRON started the year at $0.02683, but with more and more people taking an interest in crypto, the price shot up and, by 3 April 2021, it had broken through the $0.10 barrier for the first time in more than three years. The culmination of the bull run of early 2021 came on 17 April, when it reached a periodic high of $0.1799. There was some fall back from this position before it started to rally again, reaching $0.1692 on 7 May 2021. At this stage, TRON had spent a good six weeks or so above the 10 cent mark, but there was bad news on the horizon.
The great crypto day crash of 19 May 2021 saw TRON drop from an intraday high of $0.1179 to a low of $0.06453. While there was some recovery, the damage had been done and the coin spent much of the next few months in the doldrums, with the nadir coming in the form of an intraday low of $0.04917 on 20 July.
August and September 2021 saw the crypto market start to recover, and TRON broke back through $0.10 in early September. While there were troughs to go with the peaks, the coin appeared to be in a much healthier condition than it had in the summer, and its positive prices continued into November, with a periodic high of $0.1291 on 15 November 2021.
This was the last of the good times for a while, though, as uncertainty surrounding the Omicron variant of Covid-19 hit the market, causing prices to fall.
What is your sentiment on TRX/USD?
The coin closed 2021 at $0.0754 and slipped away in January, with the TRON price dropping to $0.05914 by the end of the month. There was a little bit of recovery the following month, and on 7 February TRON stood at around $0.067. Another surge was witnessed towards the end of Q1 2022 when, on 31 March, the coin was trading at highs of $0.0793.
More positive developments were in store for the coin. On 21 April, the following was announced on Twitter:
Prompted by the news, TRON surged by almost 8%, and on 22 April, the coin was worth $0.06795. Over the next two weeks or so, TRX continued to grow, and it reached $0.09087 on 9 May. However, the market was then thrown into chaos as UST became depegged and LUNA collapsed. On 12 May, TRX sank to lows of $0.06612. Some positive movement followed, and the token was trading at $0.08419 as the month came to a close.
However, this was not the last crisis blighting the crypto markets. Mid-June saw another record low of $0.04744 in one of the toughest weeks so far in crypto history. How TRON responds to “extreme market activity” will determine the fate of the ecosystem:
The collateralisation ratio (a metric determining stability) of USDD remains high, according to their official Twitter page:
However, it remains to be seen whether or not overcollatorisation will make market participants more comfortable with USDD. With some researchers speculating the legitimacy of such claims, it is important to bear in mind that there may be gaps in the financial safety net.
At the time of writing on 16 June 2022, TRX is trading at around $0.0598, up almost 20% from the previous close. At that time, it had a market cap of almost $5.7bn, making it the 14th-largest cryptocurrency by that metric.
There are almost 92.53 billion TRX in total, all of which are in circulation.
What about TRON price predictions? Do remember that cryptocurrency forecasts, especially longer-term ones, are often wrong, and are often made using an algorithm which can change at any moment. But that said, a number of organisations have attempted to peer into the future of the TRON coin.
TRX/USD price history
|Jun 25, 2022||0.06303||-0.00016||-0.25%||0.06319||0.06363||0.06270|
|Jun 24, 2022||0.06318||0.00202||3.30%||0.06116||0.06402||0.06098|
|Jun 23, 2022||0.06115||0.00068||1.12%||0.06047||0.06193||0.05920|
|Jun 22, 2022||0.06047||-0.00176||-2.83%||0.06223||0.06308||0.06038|
|Jun 21, 2022||0.06222||0.00366||6.25%||0.05856||0.06405||0.05839|
|Jun 20, 2022||0.05857||-0.00014||-0.24%||0.05871||0.05947||0.05692|
|Jun 19, 2022||0.05871||0.00038||0.65%||0.05833||0.06032||0.05598|
|Jun 18, 2022||0.05833||0.00099||1.73%||0.05734||0.06099||0.05445|
|Jun 17, 2022||0.05733||0.00062||1.09%||0.05671||0.06060||0.05618|
|Jun 16, 2022||0.05671||-0.00376||-6.22%||0.06047||0.06299||0.05573|
|Jun 15, 2022||0.06048||0.00732||13.77%||0.05316||0.06139||0.04428|
|Jun 14, 2022||0.05316||-0.00810||-13.22%||0.06126||0.06216||0.04960|
|Jun 13, 2022||0.06126||-0.01200||-16.38%||0.07326||0.07378||0.05756|
|Jun 12, 2022||0.07325||-0.00004||-0.05%||0.07329||0.07565||0.07087|
|Jun 11, 2022||0.07328||-0.00266||-3.50%||0.07594||0.07737||0.07179|
|Jun 10, 2022||0.07595||-0.00205||-2.63%||0.07800||0.07859||0.07583|
|Jun 9, 2022||0.07802||0.00038||0.49%||0.07764||0.07891||0.07707|
|Jun 8, 2022||0.07765||-0.00117||-1.48%||0.07882||0.07966||0.07665|
|Jun 7, 2022||0.07882||0.00026||0.33%||0.07856||0.08002||0.07592|
|Jun 6, 2022||0.07856||0.00008||0.10%||0.07848||0.08176||0.07795|
TRON coin price prediction for 2022
PricePrediction.net foresees the coin reaching a maximum price of $0.10 this year, before reaching an average of $0.14 in 2023, $0.21 in 2024 and $0.29 in 2025.
Its TRX price prediction continues to be upbeat, with an average of $0.43 in 2026, $0.64 in 2027 and $0.94 in 2028 and $1.40 in 2029. The site’s TRON price prediction for 2030 sees it rocketing to $1.97 before reaching an average of $2.86 in 2031.
CoinPriceForecast has a TRON coin price prediction for 2022 which sees it close the year at $0.0765, before finishing 2023 at $0.0850. The coin should then close 2024 at $0.1119, 2025 at $0.1396 before reaching $0.1596 at the end of 2026.
The following few years should see a general uptrend according to the site, with TRX hitting $0.1849 in 2030 before reaching $0.1920 in 2031.
Meanwhile, LongForecast says TRX could fall in the shorter term, closing the year at $0.039. The site suggests that it should close at $0.039 in June next year, and $0.060 12 months on. The site’s TRON price prediction for 2025 sees it down to $0.037 in June before recovering slightly to finish the year at $0.046.
Finally, WalletInvestor is bullish about TRON’s future, expecting it to reach $0.0786 in 2023 and $0.114 in 2027.
Some final things to point out. First, TRON appears to be a crypto that has seen steady gains during upbeat times and bad, but not devastating, losses during downturns. The coin has broadly behaved in line with the market, in other words. For a token which certainly seems to offer a lot, this may be rather disappointing for longer-term enthusiasts.
Second, we will have to see how well it takes to full-scale decentralisation. While there has not been anything too surprising yet, we will have to see if TRON can handle its newly found freedom in an increasingly changing market.
The final thing to note is that TRX is one of many cryptocurrencies which reached an all-time high in the boom of late 2017 and early 2018. Since it has got nowhere near the heights it reached then, it may be reasonable to query if and when it can get back there – if ever. As with all cryptos, caution is advised.
As of 16 June 2022, there were 92,526,937,305 TRON coins in total, all of which were in circulation.
It could be. Most of the forecasts are upbeat, but there are some which predict a drop in price. As always, you will need to do your own research, remember prices can go down as well as up, and never invest more money than you can afford to lose.
It could do. There is a lot of space between its current price and the highs it enjoyed in April and November 2021, let alone its record price in January 2018. Again, you will have to do your own research and never invest more money than you can afford to lose.
This is entirely a matter for you. Before you make a decision, you will need to do your own research, remember cryptocurrencies can be highly volatile and prices can go down as well as up, and never invest more money than you can afford to lose.