Tron’s Tronix (TRX) price has increased by 16% in total over the past two weeks (as per the CoinGecko data), after Bitcoin’s magical 60 minutes on Tuesday, April 2nd. Bitcoin went up by 20% in an hour flat, and it dragged up the whole market including TRX. It’s trading at $0.0269 as we write this article.
Let’s not forget that this is a digital asset that’s hardly 19 months old and it’s gone up by 21% over the last thirty days. It’s the eleventh cryptocurrency by market capitalization with 1.79 Billion in total market capitalization value. So the price may seem low, but the numbers are thoroughly impressive.
Tron’s ambition is to use blockchain technology to decentralize the web and create a content network in which content producers keep all the rights to the work they do, and it which central authorities (such as Youtube) are no longer in a position to dictate terms. However, that’snot all. Tron is also a third generation blockchain that functions as a programmable platform that allows for the deployment of decentralized applications and smart contracts.
Its current CEO, Justin Sun founded the Tron project (ruled by the Singapore-based Tron Foundation). Mr. Sun had worked for Ripple for a while before starting his own project, he has a proven track record as a technologic business tycoon in China (the country’s most successful messaging app is his), he’s one of Forbes’ 30 under 30 and he’s known to be a close friend and protegé of Jack Ma’s, the man who founded and owns Alibaba.
So Tron is a substantial project with strong fundamentals but the token, despite being in the top 11 already remains rather cheap and it hasn’t performed spectacularly well as a financial tool. Can that change? Can the TRX break into the world’s top five cryptocurrencies before this year ends? In this article, we’ll try to answer that question.
Right now, the top five are Bitcoin, Ethereum, Ripple’s XRP, Litecoin and Bitcoin Cash, in that order. Bitcoin cash is worth $5.20 billion which is a lot more than Tron’s capitalization. It surpasses it by roughly three billion.
So, should everything else stay the same (which never happens in crypto) Tron would need to gain at least three million in value from here to December. However, it’s not impossible. It’s a very innovative project that works very hard to keep improving and using blockchain technology to solve new problems, so the potential is there. However, will all the ducks line up?
Let’s explore the reasons that could indeed line up the ducks.
Tron has managed to outperform almost everybody else as a decentralized application platform, and its new independent Main Net is not yet one year old. Also, on top of that, it bought CoinPlay.
CoinPlay is a blockchain-based decentralized application store. It offers software, games, cryptocurrency ratings and indices. Both projects have similar value and visions, so it’s somewhat natural for them to join forces as they strive in “providing a better user experience for blockchain practitioners.”
The point in CoinPlay is to make the transition into the crypto market easier for newcomers. As Tron’s dApps keep generating interest inside and out of the Tron network, Tron’s new partner should make it easier for new users to find dApps to their liking. It should also help developing teams to list and promote their projects.
Last month, Tether announced that it would create a stablecoin that will run on Tron’s blockchain. The new USDT stablecoin (which is called like that because every token is a cryptographic currency, but a fiat USD also backs it). It will be a Tron-based token that will use TRC-20 technology, which is the most advanced amongst the two token-issuing technologies Tron has developed (the other one being TRC-10). The new USDT-Tron will be fully compatible with the Tron network, and it will be accepted by all of Tron’s decentralized apps and protocols.
A Tron stablecoin launched using the Tron network could make potential institutional investors pay attention to the project as a whole because the new token can’t be worth less than a USD thus eliminating volatility, which is the institutional world’s main fear about the crypto verse.
The new stablecoin will be launched soon, sometime during the 2019’s Q2. Mr. Sun is quoted saying that it could even be launched in early April, so keep your eyes open, it could arrive any day now!
Odyssey 3.5 is Tron’s latest network update (which blockchain projects like to call a “hard fork”).
The upgrade has many new exciting features that will enhance the network’s performance and security.
There’s the introduction of multi-signature Tron accounts. This is all about improving security because it means that a single key will no longer be enough to secure an account and enter into the wallet.
The updated virtual machine is 50% faster and far superior in functionality compared to its predecessor.
Justin Sun is looking forward to seeing how the BitTorrent token will affect the Tron network and project. The Tron Foundation paid USD 140 Million for BitTorrent, which wasn’t exactly cheap. But BitTorrent will bring into Tron 100 Million new users scattered all over the world, so maybe it wasn’t a high price to pay either.
The new Tron-based BitTorrent network includes a token called BitTorrent Token which has already been launched.
The next step is BitTorrent Speed. This will be a new BitTorrent client that will do all the tricks you know and love from Transmission or Deluge (two very popular BitTorrent clients) plus a few new tricks enabled because of integration with a blockchain network. Chief among those is that the client will compensate seeders with BTT tokens thus allowing them to earn some passive income for sharing their bandwidth and content with the network. The new software should be available sometime in the current quarter.
TRX Price Analysis (long term)
If Tron is to reach the top 5, it has to get beyond the $0.08 level. That will mean that a few resistance levels must be faced and broken. Here are some details.
Current daily charts show that the TRX market has broken the 200 days EMA as well as the 100 days. This strongly smells of bulls.
The price action also broke beyond resistance levels, according to Fibonacci Retracement Theory, at USD 0,028. This indicator is computed using the coin’s height from May 21st of last year to the December 2018 low.
Buyers are driving the TRX/USD trading pair higher. Should they continue to do so, they’ll need to face the music at USD 0039 which is the .328 Fibonacci Retracement level. If it goes above USD 0,040, the new resistance could be one cent higher with the next retracement level (.618 Fibonacci) located at 0,056.
If (and this is a big “if”) the bulls keep insisting and driving the price up, they will face resistance at USD 0,064, and then again at 0,070, and 0,076.
Tron has a lot of potential to get to the top five, especially after the hard fork implementation has given the network a whole new functionality level, and especially once that Project Atlas (the total merger of the BitTorrent decentralized network into Tron’s blockchain Main Net) brings 100 million new potential users and gives them BTT tokens they can use around the Tron network.
The BitTorrent Speed launch will get Tron all kinds of new attention from expert computer users who are otherwise uninterested in crypto. And that kind of new momentum could be the thing that finally brings the TRX price higher than the required $0,08.
So yes, Tron can hit the top five this year. Will it? We’ll have to see.
Image courtesy of Pixabay.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.