Looking at the coin info of TRX one cannot help but notice its infinite supply.
What would it take to propel such a coin as a top ranked crypto and keep it in the green ?
source
(Tron price a few days back source coinmarket cap)
This is despite the current crypto scenario!
Almost everyone associated with the crypto space is aware of how the Terra UST saga has played out after the Terra UST peg broke and crypto hell broke lose.
These events have only prolonged the crypto winter
For many investors TRON has been a coin on the radar for various reasons.
It is a coin with its couple of interesting use cases on the blockchain and has seen some significant development of dapps and staking pools.
Tron inching up
It is a coin which has inching up the rankings ladder. The coinmarketcap listing shows that it is currently at rank 13/14.
The above TRX pricing was a snapshot I had taken about ten days back
// Ten days back this is how the numbers stacked
On close scrutiny one finds it has a $7,865,628,916 of Fully Diluted Market Cap.
It has a Circulating Supply of 93.22B TRX
Markets have slid significantly since then
This is where Trx stands
Yet when the entire market has been significantly in the red the TRON coin has been inching up.
Can the tron price go up higher ?
Currently the tron price has been around $0.08 cents and it has seen an all time high of around $0.23
So at this point it is a third of its all time high price.
Looking under the hood of Tron
If we look at the Tron supply and burn then there is a chart present on tronscan which presents a clear and interesting representation of the two divergent processes.
The chart can be viewed here https://tronscan.org/#/data/charts2/circulation/supplyAndDestroy
The chart for a span of 1 years shows how the supply was higher than the burn quantity.
However since Oct 2021 the burn number overtook the generated number of coins.
This is nudging Tron towards a deflationary path
Trons foray into the stable coin space
Tron has launched a stable coin USDD By burning tron USDD are generated.
The current circulating supply of Tron backed USDD is 667,521,101.61 USDD
The more USDD are generated the more are the number of Tron coins that are burned.
If USDD fortifies its position further...
The direct correlation between USDD generation ==> Tron Burn ==> reduction in tron supply ==> Increase in price of tron.
So far the steady progress of Tron backed USDD has led to steady increase of Tron pricing.
Tether USDT has a market cap of $72,497,571,768 and Even the Binance BUSD has a market cap of $18,041,372,786
As compared to this the Tron backed USDD has a market cap of $667,863,441
So if the market cap of USDD were to increase as a result of wider adoption and the need for algo stable coins then surly the price of Tron could see a healthy rise form here.
One can say this looking at the list of algo stable coins sorted by market cap. 6 June 22 Data
In this list USDD sits at number two.
Form here anything can happen. USDD can go up in terms of market cap and take the Tron price up
In crypto anything can happen so we can even see the reversal of this event being played out which would cause the Tron prices to slide down.
Let us not speculate
I am merely an observer watching how events unfold in the crypto space and how opportunities arise in this light I can only say DYOR do your own research before making an investment.