- July’s burn statistics marked a reversal from the 17% drop seen in June.
- July recorded a 47% drop in total transactions on Tron, halting a 4-month uptrend.
With the intention of long-term market value growth, TRON continued to apply deflationary pressure on its native token TRX. The network removed 467 million tokens out of circulation in the month of July, as per Tronscan, marking a 2.4% increase from June’s figures. This achievement also marked a reversal from the 17% drop seen in June’s burn rate.
Source: Tronscan
Read TRON’s [TRX] Price Prediction 2023-24
TRX goes up in smoke
A steady drop in the issuance rate makes a token scarce, which could boost its demand in the market, resulting in price hikes.
As evident, the number of new tokens minted on the network remained largely constant. Consequently, the net issuance rate, or the inflation rate fell further into negative territory, to -310.27 million in July. Notably, TRX has been in deflation for 326 straight days.
At the time of writing, about 89.6 billion tokens were in public hands, registering a fall of nearly 2.6% on a year-to-date (YTD) basis. When measured in absolute terms, the data revealed that about 2.38 billion TRX tokens have been burned since the beginning of 2023, representing a sizable contraction.
Moreover, for the period from 29 December, 2019, to press time, the supply of TRX has been shrinking at the rate of 2.96% per year.
Source: Tronscan
A look at Tron’s network growth
Tron continued to outperform other major blockchain projects in terms of network activity.
As per data analytics platform Artemis, the daily active addresses on the Tron network hit 1.58 million on 1 August, eclipsing second-ranked BNB Chain and establishing a massive lead over chains like Ethereum [ETH] and Solana [SOL].
Source: Artemis
Tron also fared well in terms of transactional activity. On 1 August, about 5.24 million transactions were executed on the blockchain, second only to top-ranked Solana.
However, while Tron was outperforming most of its rivals, a closer look at its individual performance highlighted a steep fall. According to Tronscan data, July recorded a 47% drop in total transactions, halting a 4-month uptrend.
Source: Tronscan
How much are 1,10,100 TRXs worth today?
TRX still in the red
Surprisingly, TRX’s price trajectory showed a detachment from its deflationary momentum. The token was down 1.32% over the last 24 hours with its weekly chart also displaying losses to the tune of more than 7%, per CoinMarketCap.
TRX was the tenth-largest crypto in the market with its market cap equaling $6.86 billion at the time of publication.
