In a world where digital currencies reign supreme and technology is advancing at breakneck speed, Tron (TRX) has entered the scene as a formidable player, challenging the dominance of Ethereum (ETH) and becoming one of the dominant forces in the cryptocurrency market.
Tron's lightning-fast transactions and low fees have made it an investor favorite, attracting a growing number of investors and enthusiasts. According to Google Trends, Tron has now edged out Ethereum in terms of social interest, cementing its position as a sought-after crypto.
This increased interest could be the result of a host of factors, such as the network's distinctive attributes and benefits, favorable media coverage, or growing consumer and business adoption.
Image: The Daily Hodl
In the blockchain industry, two major token standards are TRC20 and ERC20. ERC20 is an Ethereum blockchain token standard, while TRC20 is a Tron blockchain token standard. For the creation and use of tokens on their respective blockchain networks, both standards have been widely adopted by developers and consumers.
Recently, interest in its token standard, TRC20, has increased over Ethereum's ERC20 standard. A keyword comparison between TRC20 and ERC20 demonstrates a huge increase in search volume for Tron's token standard.
Despite the fact that TRX's price volatility has decreased, its trading volume has also decreased, which is concerning. This downward trend in trading volume could be interpreted as an indication of an impending price correction.
TRON (TRX) slightly up last week
As of this writing, TRX is trading at $0.0673, up 1.0% in the past 24 hours and up 2.3% in the past week. The cryptocurrency is up 5.5% on a bi-weekly basis and 14% on a monthly basis, according to data from crypto market tracker Coingecko.
Source: Coingecko
It is essential to note that market corrections are common in the cryptocurrency market and can occur quickly and unexpectedly, causing prices to drop substantially.
Token Terminal, a platform that provides insights and analysis on crypto projects, reported that Tron's development activity has dropped significantly. In the past 30 days, the number of active developers on the Tron network has decreased by almost half.
Lack of development activity
This decline in developer activity may mean a lack of future Tron protocol updates or upgrades. Without regular updates, Tron can struggle to keep up with the competition and keep up with the changing demands of its users. Lack of development activity can also indicate a decline in community engagement, which is critical to the success of any blockchain project.
Additionally, daily activity on the Tron network decreased by 12.0% over the same period, which may indicate a decline in network adoption and usage. These factors may cause Tron investors and consumers to worry about the future of the network.
TRX total market cap now at $6 billion on the daily chart at TradingView.com
Meanwhile, Tron's weighted sentiment has steadily increased, indicating that the cryptocurrency community has a positive view of TRX. Some analysts believe that the recent behavior of whales, which have shown increasing interest in TRX, could be one of the reasons for its price appreciation.
However, the concentration of whales holding TRX could contribute to the centralization of the network, which could be worrying for retail investors. If these whales decide to sell their positions, the price of the coin could drop significantly, resulting in significant losses for coin holders.
- Featured image from GoodReturns