Should I Buy Tron? 5 Things You Should Consider

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Should I Buy Tron? 5 Things You Should Consider
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Tron price has recovered steadily after falling to a year-to-date low of $0.05 in February. At the time of writing, the TRX token is trading at $0.075, giving it a total market capitalization of over $7.3 billion. This makes it the 24th largest cryptocurrency in the world. Here are five things to consider when buying Tron.

Tron is a proof-of-stake token

Blockchain projects are built using a variety of technologies. Bitcoin was the world’s first cryptocurrency that introduced a concept called Proof of Work. PoW is a security technology that generates new coins using computer algorithms. While the process is safe, it requires a very expensive computer, and the process is often expensive.

Tron does not use the proof-of-work method. Instead, it uses Proof of Stake, which is a process of generating new coins using validators. PoS is generally more environmentally friendly and has a reputation for being faster than Proof of Work.

In fact, some of the most famous blockchain projects have now adopted PoS technology. Ethereum is transitioning from PoW to PoS during its Ethereum 2.0 upgrade. Other popular platforms using PoS are Polkadot, Avalanche, and Terra.

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The fact that Tron is a PoS token has several benefits. First, it means that one can easily earn staking rewards. Staking is a process where you simply deposit funds to exchanges like Coinbase and Binance. Once you do this, you will earn a certain amount of interest each month. PoW networks like Bitcoin and Kadena cannot be staking.

Second, as proof of stake, Tron is a much faster blockchain project than other networks. According to its website, it can process over 2,000 transactions per second. Bitcoin can only handle less than 10 TPS, while Ethereum can handle less than 20 tps. Third, Tron is easy to integrate with other blockchains like Avalanche and Solana.

The Tron ecosystem is growing

The second thing you need to know is that the Tron ecosystem is growing strongly. The number of developers building with Tron has grown over the past few months. Most of these developers work in the Decentralized Finance (DeFi) industry, while others work in the Metaverse and Non-Fungible Token (NFT) industries.

According to DeFi Llama, there are now nine applications built using Tron’s platform. Some of these apps are JustLend, JustStables, SunSwap, and SocialSwap, among others. The total value locked (TVL) of these applications exceeds $4.4 billion. JustLend’s TVL is over $1 billion and growing strongly. With its current TVL, Tron is the 7th largest application in its ecosystem.

One of the largest parts of the Tron ecosystem is the BitTorrent chain. It is the first scalable heterogeneous cross-chain interoperability protocol. Applications built into BTTC are compatible with other chains such as Ethereum, Solana, and Fantom.

The relationship between Tron and BitTorrent started in 2018 when Justin Sun acquired it. After years of development, they launched BTTC, whose native token is called BTT, with a total market cap of over $1.8 billion.

TRON is facing tough competition

Another thing you need to know when you want to buy Tron is that its competition is on the rise. When Tron was launched a few years ago, there were several competitors. At the time, Ethereum was one of the few platforms with smart contract capabilities. Today, the industry has become so competitive with applications using different strategies.

Some of the biggest Tron competitors are Terra, BNB Chain, Avalanche, Solana, and Fantom. All of them are much bigger than Tron. Other smaller ones that pose a major threat to Tron are Polygon, Cronos, Arbitrum. waves, and near.

All of these platforms are changing their industries with different capabilities. For example, Near Protocol and Ethereum have adopted sharding technology to improve throughput. Polygon, on the other hand, is a layer 2 network whose goal is to enhance Ethereum applications. Therefore, the growth of Tron price will depend on the number of developers embracing the network.

TRON has stablecoins

Stablecoins are becoming a player in the blockchain industry. Unlike regular cryptocurrencies which are highly volatile, these tokens are backed by fiat currencies such as USD and EUR. Some of the largest stablecoins are Tether, USD Coin, Terra USD, and Binance USD. In total, stablecoins hold more than $200 billion worth of assets.

In April 2022, TRON’s Justin Sun announced that the TRON Foundation would launch a new stablecoin called USDD or Decentralized Dollar. Once launched, it will be the first stablecoin in the TRON ecosystem.

Unlike other stablecoins, Tron’s stablecoin will be fully decentralized, meaning it will not rely on any centralized organization to store reserves. Instead, these reserves will be provided by the Tron DAO.

USDD will also be different from other stablecoins as it will not be backed by fiat currency. Instead, it will be tied to TRX. Therefore, when the USDD price falls below 1 USD, the user will be able to send 1 USDD to the system and receive 1 USD worth of TRX. It is the same concept as Terra USD.

Tron has high liquidity

Finally, Tron is one of the most popular cryptocurrencies in the world. Therefore, it is offered by most exchanges such as Coinbase, FTX and OKX. It is also one of the most widely held cryptocurrencies. According to its website, it has more than 88 million accounts. Therefore, this makes it one of the most liquid cryptocurrencies you can buy or trade.



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