What is the Future Outlook of TRON (TRX)?
Launched during the 2017 ICO boom, TRON raised $70 million right before China's crypto ban. Since then, its TRX token has soared, delivering an eye-popping return of nearly 8,300%.
Now, let's take a closer look at Tron. We’ll cover what it is, how it works, its history, key use cases, and what the future might look like.
What Is Tron (TRX)?
Founded in 2017, Tron (TRX) is a high-throughput blockchain that aims to decentralise the internet. With smart contract functionality, it can host decentralised applications (dApps) and launch tokens based on the TRC-20 standard.
For that reason, it is often considered one of Ethereum's most prominent competitors, especially in the decentralised finance (DeFi) and stablecoin markets.
Tron leverages the Delegated Proof-of-Stake (DPoS) consensus mechanism and a limited number (27) of validators called super representatives to achieve high throughput at 2,000 transactions per second (TPS) and a 3-second block time. While this architecture ensures the network's security and scalability, it comes with certain sacrifices in terms of its decentralisation.
Tron is powered by its native TRX token, which currently ranks as the ninth top cryptocurrency by market capitalisation. The coin's main use case is to cover transaction fees within the network. TRX has no hard cap on its max supply, with currently 86.48 billion circulating in the market.
What Is the History of Tron?
Tron was founded in 2017 by entrepreneur Justin Sun initially as an ERC-20 token based on Ethereum, which later migrated to its own blockchain in June 2018. Soon after the project's inception, Tron collected $70 million of funding from ICO investors.
One of the most notable events in the high-throughput blockchain's history was when the TRON Foundation, the non-profit behind the project, acquired the peer-to-peer (P2P) file-sharing service BitTorrent in July 2018. The deal's goal was to foster faster content uploads and downloads via the existing infrastructure.
In 2021, Sun resigned as the CEO of the TRON Foundation, and the non-profit transitioned into a decentralised autonomous organisation (DAO). With this move, community members were put in charge of the project's governance.
In March 2023, the US Securities and Exchange Commission (SEC) launched a lawsuit against Tron and Sun, accusing the defendants of selling unregistered securities related to TRX's and BitTorrent's BBT tokens' promotion and engaging in wash trading to manipulate TRX's price. The case hasn't concluded yet, with Sun scoring a partial victory in August 2024.
What Are the Tron Blockchain's Primary Use Cases?
Initially, Tron was launched as a blockchain for content creators to allow them to interact directly with their fans. This model enabled them to eliminate intermediaries, maintain complete ownership over their work, and receive payments in TRX from their audiences.
However, this original vision didn't attract as much attention from content creators and their fans as the project intended to. Consequently, Tron later rebranded to a high-throughput blockchain that can host dApps, run smart contracts, and aims to decentralise the internet.
With a strong emphasis on scalability, low transaction fees, and user experience, the Tron blockchain's current use case is to host dApps and TRC-20 tokens. In terms of the former solutions, Tron is currently the second-largest chain for DeFi, with a 7.79% market share and a nearly $7 billion total value locked (TVL) as of October 31, 2024.
Regarding tokens, Tron's main focus is centred on stablecoins. Due to the network's fast and inexpensive transactions, it has become a top blockchain for sending, receiving, and paying with stable assets. In fact, the Tether USD (USDT) market capitalisation is higher ($61.76 billion) on Tron than on Ethereum ($54.9 billion) or any other blockchain (including Avalanche and Solana)
Exploring Tron's Future Outlook
With a high-throughput network that facilitates transactions between users with low fees and fast settlement, Tron has become one of the top blockchains for dApps, smart contracts, DeFi protocols, and stablecoins. Thus, it is safe to conclude that the project's efforts to rebrand from a content creator-focused blockchain to one that serves dApps and seeks to decentralise the internet were successful.
In addition to serving as the top blockchain for USDT transactions and the second-largest chain for DeFi protocols, TRX's recent price rally also positively impacts Tron's future outlook. Besides an all-time ROI of nearly 8,300%, the token has also been on the rise in 2024, increasing in value by 56% since the start of the year. Moreover, while the lawsuit with the SEC is not over yet, Sun's recent partial victory has likely strengthened the defendants' case.
Buy TRON (TRX) on VALR
Looking to buy TRX? You can purchase TRX on VALR using two methods: Simple Buy/Sell or Pro Trading. With Simple Buy/Sell, navigate to the "Buy/Sell" section, select TRON (TRX), choose your payment currency (ZAR, BTC or USDT), and enter the amount of TRX you wish to buy.
For Pro Trading, acquire USDT first, then choose the "TRX/USDT" Spot trading pair and set your order parameters before placing the buy order. Both methods allow you to easily acquire TRX and participate in its growing ecosystem.
Stake TRON (TRX) on VALR
Once you've purchased TRX, you also have the option to stake it directly on VALR and earn up to 3% APR. Staking rewards are paid out hourly, and you can stake or unstake at any time, meaning you have immediate access to your funds whenever you need them. Learn more about Crypto Staking on VALR here.
Frequently Asked Questions
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The future outlook of Tron is positive, with its high-throughput network facilitating transactions at low fees and fast settlement. TRX has seen a price rally, with a 56% increase in 2024. The project has successfully rebranded to serve dApps, DeFi, and stablecoins, with TRX ranking among the top cryptocurrencies.
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Tron is not a stablecoin. However, it is closely tied to the stablecoin market, particularly with Tether (USDT) transactions being more prominent on Tron than on Ethereum.
Risk Disclosure
Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate. VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).
Disclaimer: Views expressed in this article are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.
