The future of the internet is decentralized and multiple blockchains are competing to facilitate such a reality. Many blockchains offer their networks to developers who can create Dapps and Ethereum is currently one of the most popular blockchains. However, Tron has also been making power moves under the radar, some of which are aimed at rapidly growing its user base.
For those that are not familiar with this project, it is a smart contract-enabled blockchain that operates a delegated proof of stake consensus mechanism. It competes with major blockchain networks such as Cardano and Ethereum. The latter is arguably the benchmark as far as utility blockchain networks are concerned but it has had its fair share of challenges such as expensive fees and scalability limitations. However, Tron already overcomes such limitations thanks to its DPOS consensus mechanism and high transaction throughput above 2,000 TPS.
How Tron is quickly gaining popularity
Tron’s founder Justin Sun is aware that network popularity is one of the key pillars of becoming a dominant player in the blockchain industry. Unfortunately, his blockchain missed the boat as far as a first-mover advantage is concerned but that has not stopped Sun from exploiting other means of getting there. He reportedly had a $4.5 million lunch with billionaire Warren Buffett earlier this year, during which he reportedly received bits of wisdom from the Berkshire Hathaway boss. However, one of the highlights of the expensive lunch presented a unique opportunity for Tron to gain publicity.
One of Tron’s best strategies for onboarding a huge number of users in a short amount of time is the acquisition of platforms that already have a robust user base. For example, Tron acquired BitTorrent in July 2018. The acquisition was a strategic move because the decentralized peer-to-peer network had more than 100 million users at the time of the acquisition. In 2020, the blockchain company also acquired a decentralized social media platform called Steemit which had more than 10,000 active users at the time of its acquisition.
Tron has also demonstrated interest in the gaming industry through game titles such as Aftermath Islands, Score Milk, and Crypto Dungeons. Onboarding these projects on its blockchain created additional utility for the TRX coin which has multiple use cases on the Tron blockchain network. For example, it can be used to power all the on-chain applications and transactions. It can be used for staking on the network, as well as governance on the blockchain. TRX also enables the issuance of tokens on Dapps launched on Tron.
TRX price analysis
TRX is currently trading at $0.054 with a market cap of $3.9 billion and a circulating supply of 71.6 billion coins. It is currently recovering from the bearish market conditions that saw it drop to a low of $0.049 earlier this week.
TRX’s current price is a long way off from its 2021 high of $0.18 which it achieved in April this year. TRX’s humble price tag will likely not reach Ethereum levels due to its high circulating supply. However, its current price level might yield significant gains if it reaches its previous highs. Another bullish run might push it back there but long-term growth is also possible as the network continues to gain popularity.
Justin Sun has so far steered it in the right direction and it is currently in a good position growth-wise. Apart from long-term price gains, Tron is also a good platform for earning passive income through staking. TRX’s lower price makes it affordable to anyone looking to stake on a platform that has a promising future.