Should You Buy Tron?

is Tron a good investment, will TRX hit $1 in the near future?

Last Updated March 16th 2022
15 Min Read

Tron (TRX) is the 24th largest cryptocurrency by market capitalization and so far the current challenger to Ethereum’s (ETH) reign as the first mover and king of decentralized finance (DeFi).

With partnerships formed with up and coming developer projects and a quest to compete with Ethereum (ETH) in the new Mania of non-fungible tokens (NFTs), will TRON get the largest share of the DeFi market in the near future?

This article takes an in-depth look at TRON, its core area of business, and, most importantly for prospective investors, the pros and cons which can better help answer the question: Should You buy Tron?

Tron (TRX) performed extremely well in 2021 and took advantage of the crypto boom led by parent crypto Bitcoin (BTC). Its novel token Tronix (TRX) returned 205% last year.

Tron (TRX) unlike Litecoin (LTC), a fork of Bitcoin (BTC) and Dash (DASH), a fork of Litecoin (LTC) as well as Dogecoin (DOGE) which basically thrives on a primary function of a transactional currency when adopted by online retailers and mainstream corporations, TRX transcends payment options.

Justin Sun has placed his blockchain technology at loggerheads with the first mover of smart contracts (Ethereum) and has vowed to use its quest of decentralizing everything on the internet to dethrone ETH and move on to colonize the whole decentralized finance space.

So is Tron a good investment, will Tron hit $1 in the near future, will the smart contracts blockchain provide new innovative decentralized applications which will bring strong competition to Ethereum? Will the dream of Justin Sun collapse in the not-too-distant future?

Most importantly, for prospective investors – what are the pros and cons which can help answer the question: Should I buy Tron?

Contents:

Tron (TRX) at a Glance

PROS of Buying TRON (TRX)

CONS of Buying TRON

What Are Analysts And Experts Advising On Tron (TRX)?

How to Invest in TRON?

The Bottom Line: Should You Buy TRON (TRX)?

 

Tron (TRX) At A Glance

TRON was created in 2017 by Justin Sun who currently serves as the CEO of Peiwo (social media application) and Rainberry Incorporation (formerly BitTorrent Incorporation) as well as TRON. The cryptocurrency and blockchain technology company is run by the Tron Foundation as a non-profit organization in Singapore.

Tron is a blockchain-based decentralized operating system that aims to build a FREE global digital content entertainment system.

It comes with a distributed storage technology which allows a cost-effective and easy way of sharing digital content.

Tron has created a third-generation blockchain technology that is at the forefront of a digital revolution that aims to take the current Web 2.0 to Web 3.0.

While several blockchains have a single layer, some have two layers and few such as Polkadot (DOT) have four, Tron (TRX) comprises there layers which are storage, core and application. Designed to serve the function of distributing storage protocol which consists of block and state storage, the STORAGE LAYER helps meet the need for diversified data storage.

The CORE LAYER serves the function of supporting the modules of smart contracts, account management and consensus.

Designed to serve the function of supporting the creation and issuance of tokens, the APPLICATION LAYER also releases decentralized protocols and applications.

Its novel token Tronix (TRX) powers the Tron Network.

The primary purpose for the creation of TRON by Justin Sun was to help creators of consumable online content have a say in how their contents can be shared and remunerated. Seeing the great injustice done by the centralized technological corporations, TRON aims to rewire the online infrastructure so that internet users would directly determine the amount of remuneration artists would like to receive for their work through decentralized applications on the TRON Network.

$70 million was raised through an Initial Coin Offering (ICO) in 2017 and TRON like many blockchains operated on Ethereum’s 1.O Network as an ERC-20 token.

TRX first appeared on crypto trading websites on September 4, 2017, at a price of $0.001091.

Like several crypto projects, TRON has seen a thorough assessment of its blockchain in its ability to withstand hacking and have so far been successful.

Despite all the negativity associated with Justin Sun’s innovation, TRON has so far exceeded expectations in terms of performance surpassing several forecasts by analysts who predicted that TRX will go into extinction mode in the near future.

On January 5, 2018, TRON (TRX) reached an all-time high of $0.3004. Following this was an important step by moving away from Ethereum’s 1.0 Network where it functioned as an ERC-20 token and switching to its PROTOCOL (an independent peer-to-peer network).

On 21st April, 2018 the founder Justin Sun made an announcement on Twitter, “#TRON would not be where we are today without #Ethereum. But we want to solve issues when we see them. Stay tuned for a $TRX airdrop today! Use #TRX to experience our high TPS platform & join the #TRON democracy - #ETH offers neither”.

The issue TRON wanted to solve was related to scalability (speed of processing transactions). Since Ethereum 1.O was based on the concept of Satoshi Nakamoto’s long-standing SHA-256 proof-of-work (POW) algorithm, Ethereum (ETH) adopted BTCs problem of not being able to process more transactions per second (TPS) due to its mining process. As a result, 5 to 30 transactions could be processed in a second while TRON Network processes 2000 transactions per second (TPS).

On 24th July 2018, TRON Foundation Officially Completed the Acquisition of BitTorrent after almost a year of negotiations. Justin Sun reported the announcement via social media platform (Twitter) and excerpts of his tweet go “Proud to announce @BitTorrent and @uTorrent are now part of the #TRON family. BitTorrent is supported by over 100 million users. Together, we are building the future of the decentralized internet! Stay tuned for updates #TRONBT $TRX @Tronfoundation”.

The year 2018 was difficult for all cryptocurrencies since Bitcoin (BTC) plummeted when faced with strong opposition in terms of bans of cryptocurrencies by Japan in 2018 and earlier on in September 2017 by China. TRX followed the bearish season of 2018 for cryptocurrencies and shed 79.9% of its opening price leading to losses for investors.

The bubble returned for cryptocurrencies in 2019 with BTC leading the way, unfortunately, TRON was not a part of the altcoins which followed the bullish patterns of the parent crypto. 

At the end of January 2019, Tron had crossed the $1 billion mark in terms of capitalization.

Despite this milestone, several analysts remained skeptical about the crypto trading asset’s potential in the market for the long term. BitTorrent started its own token sale on the TRON network in February 2019.

After HackerOne (a vulnerability coordination and bug bounty platform which connects businesses with penetration testers and cybersecurity researchers) revealed a flaw in TRONs entire blockchain in May 2019 which was debunked by founder, Justin Sun, 2020 saw TRONs Network tested to the limit.

On 2nd November, it was reported by Decrypt that Justin Sun and Super Friends ‘Save’ Tron from Mysterious Hack. The blockchain of TRON was paused for more than 120 minutes after a mysterious attack in the early hours of the morning, Asian Time.

The attacker wanted to profit from the suspension of block production until it was rectified and solved without incident.

With more partnerships announced which gave TRON a stronghold in decentralized finance (DeFi), TRON (TRX) started 2020 strong with a price of $0.0130 on January 1 and closed 31st December at a price of $0.0269 (for the first time in two years, TRX returned gains of 106.923% for investors).

The year 2021 was tagged as earnings season for cryptocurrency investors. TRON (TRX) performed well and returned 205% by the end of the year.

In February, TRON announced the launch of “GREAT VOYAGE: TRON 2021 Global DeFi Hackathon”. As Tron (TRX) celebrated its fifth (5th) anniversary, the Tron Foundation decided to offer this program as part of the TRON Decentralized Finance (DeFi) Entrepreneurial Alliance Support with $120 million reserved to see the program through. 

The primary goal of this program was to enhance the organic growth of TRON DeFi ecosystem, Tron Parachain slots auction as well as powering SUN with the SUN Network. With this, the Foundation looks forward to building the TRON DeFi ecosystem with the participation of more development teams and entrepreneurs.

With its future prospects, Tron is an asset worth consideration on the portfolio of all traders and investors.

Read Also: How To Make (Or Lose) Money With Tron (TRX)

PROS Of Buying TRON (TRX)

There are several pros that can help answer the question, is Tron a good investment, is it good to buy Tron now, is it worth investing in Tron and is Tron worth buying? Most of the pros are the advantages or drivers of TRONs price.

Let us take an in-depth look at the pros of buying TRON and how they can impact your trading and investing decisions in the near future.

Tron Relies Primarily On the Possibilities of Its Network (Blockchain), NOT Mere Speculation

After Bitcoin (BTC) started gaining grounds and mildly started achieving milestones in the form of mainstream adoption, several developers decided to join the cryptocurrency space. 

Founder Justin Sun decided to model its innovative technology on Ethereum (ETH) and not Bitcoin (BTC), since it would confine the digital asset into a transactional currency. If possible, it would become a store of value and compete with Bitcoin (BTC) which had already attained mainstream acceptance by fans of crypto who had even gone on to label it as “digital gold”.

With the possibilities of blockchain technology, Sun opted to run on Ethereum (ETH) and become an ERC-20 token so that it could employ smart contracts and compete with other blockchains for a share of the decentralized finance (DeFi) market.

After seeing the scaling problem associated with blockchain, Sun decided to take its creation to its own Network.

In the process, it dumped the SHA-256 proof-of-work algorithm which used too much energy which has led to questions on Carbon emissions and set its sights on competing with Ethereum.

In a tweet on April 21, 2018, Sun pointed out that “From today to the last day, we are no longer the ERC20 token and in the future, we will compete with Ethereum as a DApp platform. We will compete face-to-face with Ethereum, and we have confidence we will build a large ecosystem; a much larger ecosystem than that of Ethereum”.

There was strong developer activity on the Network which has been increased by TRONs Global DeFi Hackathon Program. The categories of entry for developers with interest in the program are Lending, Payment, Decentralized Exchange (DEX), Protocol Interfaces, Analysis & Visualization, Infrastructure, Computing Power-Based Mining, Stablecoin, Insurance and Non-Fungible Tokens (NFTs). 

With the final review of all projects slated for in May 2021, TRON is on the right path towards developing an ecosystem which can give strong competition to DAPPS on Ethereum and other blockchains.

In early 2021, TRON benefitted from activity on stablecoin (USDT). 

As per data retrieved from CoinDesk and Coin Metrics, “The daily transaction counts on TRON have been consistently surpassing the transactions on Ethereum (ETH). The number of tether stablecoin transactions on the TRON Network has also beaten count on Ethereum’s Network”.

In April 2020, Justin Sun added another Stablecoin called TrueUSD (TUSD). Excerpts of the tweet go, “Welcome $TUSD to join #TRON family! Stay tuned for more details of the #TUSD × TRON Collaboration in the future! $TUSD is the world’s most transparent #stablecoin, fully collateralized and independently attested live on-chain!”

✅ TRONs Scalability and Processing Fees Attracts Developers

A blockchain’s transaction fee is dependent on how slow or fast it processes transactions. Scalability is directly linked with fees. The faster a technology can scale, the lower its fees and the slower it scales, a congested network is formed and it increases the fees of processing.

As one of the go-to developers of smart contracts, TRON processes more transactions than its primary competitor Ethereum. Since Ethereum 2.0 which promises up to 100,000 transactions per second (TPS) is not fully functional, Ethereum’s current Network of 1.0 processes 10 to 15 transactions per second (TPS) and has an average transaction fee of $2 (as per data sourced from YCharts). TRON processes 2,000 transactions per second (TPS) and has an average transaction fee of $0.

Ethereum’s success has been its downfall since there is so much activity on its network which has led to high congestion which has resulted in high fees.

Cardano (ADA) which has also tagged itself as Ethereum Killer can process 1,000 transactions per second (TPS) and can be upgraded to 1,000,000 transactions per second (TPS). So far, Cardano does not have a strong use case which gives TRON a competitive advantage in terms of being the smart contracts which scales faster and provides developers with real returns on their investments.

✅ TRON Has Real World Use Cases and Several Mainstream Partnerships

In the days of the pandemic where the financial market was brought to a standstill, TRON continued to make partnerships. One of such partnerships was with SAMSUNG. In April 2020, Samsung announced that it has dedicated a section on its Galaxy Store for decentralized protocols or applications (DAPPS) which were developed on the blockchain of TRON.

Considering Samsung is one of the 3 smartphone giants globally along with Apple and Huawei, TRON DAPPS will be accessible by millions of users. To be more specific, as per data retrieved from Newzoo, there were 992.4 million active Samsung users as of March 2020. Out of this, 400 million users patronize the Galaxy Store every month and download more than 450 million applications (including TRONs) across 188 countries worldwide.

Other partnerships include CoinPayments which has over 2.2 million merchants across 182 countries that have integrated TRX as an option of payment.

Opera Browsers is among the top 5 web browsers in the world and has more than 380 million users. Opera supports the novel token of TRON, Tronix (TRX) as a result of its LEDGER CAPITAL PARTNERSHIP.

With more people getting a chance to use decentralized applications on the TRON network, new use cases are going to bring new activity on the trading patterns of TRX. This would increase trust investors have in the digital asset and its technology which would lead to more adoptions in the future.

In March 2021 was announced that TRON has established a strategic partnership with MixMarvel (a blockchain game publishing platform) to bring more NFTs and digital content to TRONs ecosystem.

CEO of MixMarvel, Yiyi He – Co – speaking of this partnership pointed out that “TRON (TRX) has one of the most active and biggest communities in the entire crypto finance space and is one of the best-known platforms in the blockchain market”.

Such partnerships bode well for the future of TRX as a tradable novel token.

CONS Of Buying TRON

Despite the positives associated with TRON and the promise the crypto trading asset shows in the near future, there are many pitfalls that may see it lose further ground in its quest to colonize the whole DeFi space.

Ethereum Has an Advantage as the First Mover of Smart Contracts

Inasmuch as Ethereum’s average transaction fee is too high, the second most popular and second-largest cryptocurrency by market capitalization controls 70% of the decentralized finance (DeFi) space. 

Currently, there is $75B locked in DeFi. The top 5 tradable tokens (DAPPS) with the most amounts of money locked in DeFi are Maker, Curve, Convex, InstaDApp which run on Ethereum’s blockchain and Aave which runs on Multichain.

On the new craze which has brought new investors to digital assets called Non-fungible tokens (NFTs), Enjin Coin (ENJ), Chiliz (CHZ) and Decentraland (MANA) are the top 3 performing NFT platforms which is followed by FLOW blockchain which has got links to the Ethereum (ETH) blockchain.

Justin Sun has made partnerships with PROSPER (is a non-custodial, cross-chain prediction market and hedging platform) and REEF DeFi (the world’s first cross-chain DeFi operating system) among a host of strategic associations, but he and his team of developers would have to do more.

As per the statistics provided, Ethereum will continuously remain as not only the first mover but the king of DeFi for a long time which does not help TRON's course.

❌ Strict Government Regulation May Set In

With more cryptocurrencies and blockchains being added to an already saturated market, regulators from powerful economies may set in. TRON is supervised by the Company Law of Singapore but due to its decentralized nature, it reaches all manner of markets as a result of the internet. Numerous governments keep warning its citizens about the risks associated with cryptocurrencies. 

Several central banks as a result have started experimenting with the idea of central bank digital currency (CBDC) which will gain more trust and acceptance by citizens since people could hold authorities accountable when investments go wrong. 

For the time being, as a trader or investor, despite the prospects of TRON and all cryptocurrencies for that matter, invest an amount of money you can afford to lose and see where it can take you as per your investment goals. We do NOT know what may happen in the near future.

❌ Strong Competition from Other Altcoins

Many people may have forgotten that aside from Ethereum (ETH) and Tron (TRX), there are other altcoins that are performing well. Polkadot (DOT), Tezos (XTZ), EOS.io (EOS), Kusama (KSM), Cardano (ADA), Gnosis (GNO), Solana (SOL), Cosmos (ATOM), IOTA (MIOTA), Flow (FLOW) and Chainlink (LINK) have more developer activity on their networks than TRON.

Some of these crypto projects have decentralized applications and NFT platforms that are recording more trade volumes daily. Aside from that, TRONs dAPPS have a fraction of their market capitalizations.

As a result, there are several projects competing for the second spot which does not bode well for TRONs quest to be the king of the DeFi space. Time will tell if TRON will continue to have a future where the crypto trading asset would still make the headlines as a competitor to Ethereum’s dominance.

What Are Analysts And Experts Advising On Tron (TRX)?

Due to the popularity of TRON as a result of its founder being a crypto enthusiast, several analysts have weighed in on the performance of the cryptocurrency in the foreseeable future.

Trading Education has searched length and breadth to find realistic TRON price predictions which can answer the questions, should I buy Tron? Is it worth investing in TRX?

Trading Beasts forecasts the price of TRON to reach the maximum of $0.098 by the end of the year 2022 and $0.14 in 2025.

The Economy Forecast Agency believes TRON will exchange hands for $0.06 by the end of 2022 and go through a bullish season in 2023 and trade for $0.092.

Wallet Investor foresees a trading price of TRON of $0.10 by the end of 2022. The online portal which provides good quality and free-of-charge technical forecasts for cryptocurrency rates further forecasts TRX to trade at $0.15 in 2023 and $0.24 in 2025.

Digital Price Forecast predicts the price of TRON to close at $0.08 by the very end of 2022, $0.09 in 2023, $0.13 by the year’s end of 2025 and $0.29 in 2029.   

Price Prediction website foresees the price of TRON trading between $0.080 and $0.095 in 2022 and between $0.24 and $0.28 in 2025.

Crypto-Rating.com analyst Alex Paulson foresees TRON for $0.18 by 2023 and increase to $0.33 by the end of 2024. Aside from this, the analyst who writes for the ratings website believes the bullish momentum will be maintained which will take TRX to a price of $0.64 to end 2025.

Arthur Webb of Ripple Coin News believes TRON will reach the $1 mark by 2025.

At the end 2030, TRON (TRX) will have a trading price of $0.29, according to the Coin Price Forecast. Coin Switch forecasts a prediction for 2030 which they believe will hit $1. Change Hero sees TRON (TRX) exchange hands in the price range of $1 to $10 in 10 years.

Read More: TRON Price Prediction Forecast

How To Invest In TRON?

With so much controversy surrounding TRON (TRX) as a result of a possible hacking attempt in 2020 and former employees taking the founder Justin Sun and other stakeholders of the organization to court for wrongful termination, is TRON worth the investment of your hard earned fiat currency? 

If it is, then where can you gain assurance for the safety of your coins (TRX) as well as your money?

eToro is the brokerage of our choice. eToro has been in business for a long time and has the necessary certifications and license from regulatory bodies in advanced countries such as the United States and the United Kingdom.

Aside from this, it ticks all our boxes in terms of authenticity, scalability and ease of use. 

The Bottom Line: Should You Buy TRON (TRX)?

If someone tells you there is a perfect crypto trading asset, do not believe it. Cryptocurrencies go through bullish days and bearish seasons.

As a result of TRONs quest to take the whole Web 2.0 to Web 3.0 where every fiber of the internet is decentralized, it has a competitive advantage in terms of creators in the music and publishing industries opting for its Network as their blockchain of choice.

Tron (TRX) shows great promise with its partnerships and more developer activity from its Global Hackathon Project which will add more innovative applications to its ecosystem.

This would go a long way towards increasing the overall valuation of the cryptocurrency. The resultant effect would be gains for investors.

Still trading at a relatively lower price than its competitors Cardano (ADA) and Ethereum (ETH), any investor can make a purchase of TRX to serve as a hedge against risky investments which are expensive.

Monitoring the Twitter handle of Justin Sun sees an expansion of Total Value Locked-in TRON DeFi as well as partnerships for DAPPS and NFTs which is great for the future of the digital asset.

If we are to go by this, TRON is a buy and may be able to make gains for investors who are patient enough to see the real value of the digital asset in the near future.

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