Tron, the cryptocurrency founded by Justin Sun, has declined in value over the past two months, erasing some of its 2024 gains. This article will discuss the current trends and potential growth of Tron.
TRX Falling Wedge Pattern Development
The weekly chart indicates that Tron remains above the 50-week moving average, suggesting its long-term bullish trend is intact. TRX has also formed a falling wedge pattern, often leading to a strong bullish breakout. Additionally, the presence of a doji candlestick pattern suggests a potential rebound in the coming weeks.
High Profitability of Tron Network
Tron has established itself as the most profitable layer-1 network in the crypto industry, generating $1.44 billion in fees over the past six months. These fees are significant for Tron holders as they receive a portion as staking rewards. Currently, Tron offers a staking yield of 4.5%, higher than Ethereum's 3%.
Decreasing Tron Supply
A critical factor on the market is the decreasing supply of Tron in circulation. According to TronScan, TRX is one of the most deflationary tokens in the crypto industry, with an annual deflation rate of -2.83%. This trend is driven by the fact that the number of newly minted TRX tokens is consistently smaller than the amount burned.
Tron continues to attract investor attention due to its current metrics and growth prospects. Despite the recent price drop, long-term chart patterns and high staking yield point to positive prospects for TRX.
