TRON is a decentralised blockchain network founded in 2017, with a similar purpose to the Ethereum blockchain but providing an advantage that aims to attract more users.
Initially, the TRON token was minted according to ERC-20 standards before switching to the TRC-20 protocol and becoming the central cryptocurrency for the TRX network.
The project was created to provide a decentralised environment and a fair reward system for content creators, encouraging them to create and earn without a centralised middleman that takes big chunks of their gains.
The TRX network targeted dApps creators and the Web 3.0 gaming community to create, own, and earn upon their creations in blockchain, which nurtures quicker transactions than other blockchains. The network also created a compensation system for digital creators to develop and share their digital assets transparently and quickly.
This introduction received a welcoming reception from the crypto community, and the price has grown steadily over the years.
TRON’s price movement and blockchain activity in the last couple of months grabbed the attention of crypto enthusiasts, and many started questioning will Tron reach $10? Despite reaching $10 is far from reality, these questions come from TRON’s recent rally against Ethereum.
Tron transaction explorer has been showing great activity compared to the Ethereum blockchain, with more than 4.5 million transactions in one day, compared to Ethereum’s 879,000 transactions on September 17th.
This means more people are transacting and using the TRON network instead of the most popular blockchain, Ethereum. There are several reasons for this uptick in transactions on the Tronscan.
TRON network powers faster transactions and lower fees compared to the overly crowded Ethereum blockchain with its increasing gas fees. The TRX blockchain can execute around 2,000 transactions, which is superior to Ethereum, which is still around 30 TPS.
Ethereum’s crowded blockchain causes an increase in gas fees, which many crypto users try to avoid, going to alternative blockchains like the TRX blockchain.
This trend kept increasing, and on 19 September, the TRX transactions crossed 5 million, while Ethereum just scraped the surface of the 1 million threshold.
Another reason for this growth is the increasing adoption of Tether stablecoin instead of ETH in Asia, which became the largest market for stablecoins. Tether uses the TRC-20 protocol powered by the TRON network, which contributes to increasing transactions on TRX.
TRON coin price history shows a positive move throughout the course of 2023 by more than 50% from $0.0546 at the beginning of 2023 to $0.0831 by the last week of September.
This growth came with massive dips and soars, but let’s look at the September price movement after we tracked TRON transactions on the TRX blockchain.
The price trend started a positive movement from September 11th, jumping from $0.077 to around $0.080 in one day, followed by another jump on the 14th, reaching just below $0.084.
However, the massive number of transactions recorded on the 17th did not directly impact the price trend, as the price stayed steady throughout the week after September 14. The price started swinging down on September 21, but it looks like it will stabilise.
For a better understanding, we used the exponential moving average indicator over three time periods: 10 days, 50 days, and 200 days.
The EMA 10 and 50 have been interestingly moving above the EMA 200 for the majority of times in September before dropping for one day on the 10th and continuing soaring the day after.
The 10-day EMA had crossed above the 50-day EMA multiple times, picking up the TRON price, reaching a maximum of $0.0846 on September 21 before it dropped below the 50-day and the 200-day indicator, dragging the price down to $0.0829.
However, the next day, the 10-day indicator started an upward movement and is very close to the 50-day EMA indicator, hinting at a potential price increase. The price trend can potentially cross the 50-day line if it keeps growing, especially with the declining 200-day EMA.
Despite the slowly growing TRON price compared to the soaring activity on the blockchain, this can potentially translate into a considerable price increase that takes the TRON token price to new levels.
The market sentiment stays bullish for the remainder of the year, but the real question is, will the TRX native token reach $1 in 2023?