The Tron mainnet launch has not been as kind to Justin Sun’s much hyped entertainment platform as many expected. In recent weeks Tether had grabbed Tron’s spot in 10th place in the market cap rankings; and now IOTA has also accelerated past TRX, leaving Tron propping up 11th place.
The TRX price started at a high of $0.041 earlier today, and sunk by 8.5% down to $0.037 – a price that TRON has managed to stay above since early April, right before it went on a major bull run and tripled its value within two weeks. The hype train was up and running for TRON at that point, and even the most cynical crypto enthusiast was looking upon it with some curiosity.
Since then TRX has been on a steady decline, losing around 62% of its value over the course of May and June. The only solace for TRX holders is that most of the rest of the market is in the same boat. And it’s not just lowly altcoins which are feeling the heat; both Ethereum and Litecoin have recently hit recent lows, while EOS has lost 67% of its value since April 29th.
Battle for the Top 10
Monero is coming up behind Tron in 12th place, and while XMR is still $0.5 billion behind TRX’s market cap, the privacy coin’s rate of growth over the past week could soon see it challenge Tron’s position.
But that too will depend on Tron, and whether or not it can climb back up to the price of $0.101 that we saw towards the end of April. The token’s market cap at that point breached the $6.5 billion mark. That amounts to more than twice its current market cap of $2.5 billion, and is comparable to the current valuation of EOS.
That’s not to mention the miraculous growth throughout January which saw the price of TRX reach $0.276 – and climb to a market cap valuation of $18,171,353,939 in the process. However it’s probably wise not to hold our breath waiting for that happening any time soon; at least not before the next major bull run that people are starting to worry might never appear.
The mainnet launch was celebrated with the burning of $50 million worth of TRX tokens. So far, the markets have not taken any notice of the burn, or at least not in a positive way. There’s a strong feeling that the coin burn was symbolic more than anything else – a PR move which would ultimately have no effect on a token with a valuation of $2.5 billion.
The 1 billion TRX tokens which were burned only amount to 1/65th of the current supply, and just 1% of the total supply.
Tron’s tumultuous movements from recent weeks look set to continue, and will leave many Tron holders pining for the heady days of April, when everything seemed so certain.