Investing In TRON: What Will Drive The TRX Price In 2021?
An analytical guide to investing in TRON in 2021
Where will TRX price go in 2021?
What will happen to the Tron price in 2021? Since cryptocurrencies are decentralised, traditional investors have always wondered: What drives the Tron price?
One of the most prominent emerging cryptocurrencies: Tron established its roots back in 2017 as a valid digital coin to set off the trades, business, and other economic matters. Having a steeper fluctuation since its formation, Tron always secured its value in the top 20 most essential cryptocurrencies for that time. Its name revolves around the major cryptocurrencies like Bitcoin, Tether, Stellar, and XRP.
At the very start of its journey, Tron made its position by securing a value of 2-4 cents and still revolves around it. This was relatively good even though it is an emerging currency with a younger CEO.
For lunch in 2019, Justin Sun, the founder of the Tron cryptocurrency platform, placed a whopping $4.6 million bid on the lunch with Warren Buffett, one of the most successful investors in the world. This extravagant lunch gave Tron instant recognition and made investors raise their eyebrows to invest in this great opportunity.
This instant boost proved itself very beneficial for the ones who are looking forward to investing in cryptocurrencies. Whether it is you, me, or anyone else around us, Tron has the potential to grab anyone's attention now.
As far as Tron's prediction goes around the internet, it is somewhat expected to have a massive boost to 10 cents by the year 2021.
By having a short glimpse of the above-mentioned reputation and statistics on Tron, we can probably conclude that Tron is definitely the cryptocurrency that deserves your attention.
Cryptocurrencies enjoyed ample time in the limelight as the hot new thing for investors but have since taken a critical hit to their values. The most popular of the bunch, Bitcoin, fell from a staggering $19,000 to a meager $7,000. The volatility of cryptocurrency investment is not for the faint of heart.
The TRON platform was created back in 2017 in Singapore, targeting the entertainment and content space. With the bold goal of decentralizing the web, it aims to remove the intermediaries, which will ultimately allow content creators to charge lower and yet earn higher.
TRON is powered by TRX cryptocurrency, which is poised to eliminate the need for intermediaries in the financial sector as well, allowing for more frictionless transactions.
Tron is quickly underway to be one of the top-ten performing cryptocurrencies, according to some sources. It is currently ranked sixteenth largest, with a market capitalisation of $1.7 billion.
It is not currently a top-performing cryptocurrency, so why is it gaining popularity at such an exponential rate? Investors are showing increasing interest in Tron as it is a bit more unique than other well-known cryptocurrencies like Bitcoin. Whereas Bitcoin has set out to completely transform the online payment system, globally, Tron has embarked on transforming content creation. Tron’s ecosystem is currently working as a content-sharing platform.
In the Tron ecosystem, registered users are rewarded in Tron coins whenever they create content. This unique system ensures transparency in monetization, especially relative to other popular social media networks.
The Tron ecosystem is on its way to empower content creators by eliminating middlemen like Apple play store and Google play store. Tron's ecosystem is promoting decentralized apps and is leading the market.
The ecosystem has also given reigns to content creators as opposed to companies like Google that have too much power and control over the web. Tron ecosystem establishes a direct link of buyers and suppliers of content creators; this will result in cost cuts due to the elimination of intermediaries.
The TRON ecosystem is designed such that it really supports the TRON Foundation’s vision of a decentralized web. It can process up to 2000 transactions in a mere second. Most of all, TRON’s platform offers zero transaction costs. This level of speed and virtually no transaction costs gives TRON some edge.
One of the highlights of the cryptocurrency is definitely its young and lively CEO. The CEO, Justin Sun, has taken on various efforts, and it is mainly through his efforts that TRON has been under the spotlight for quite some time, even though it may not have been performing as well as some other cryptocurrencies.
Data courtesy of Crypto.com
The Phases Of TRON
The first phase of TRON, called the Exodus, is the content-sharing platform that directly connects content creators with buyers. The platform is not making use of blockchain technology. The technology is aimed to be incorporated in the next phase, the Odyssey. Odyssey was planned to take over at the beginning of 2019, but it went live in mid-2018.
The Odyssey software, ever since, has had many upgrades, from Odyssey to Mainnet Odyssey 2.0 to Odyssey 3.0. Odyssey does not offer the conventional views or clicks basis of incentives, but rather, the system is designed to replicate the concept of “tipping.”
The Great Voyage, also called TRON 4.0, went live on July 7 of 2020. TRON 4.0 has been upgraded with the first smart contract privacy protocol, which is undoubtedly the safest and most secure. Minor upgrades to the TPOS were made, which further decreased the confirmation time of blocks and resulted in amplified security.
As TRON’s vision is not just the decentralization of the web, that is not all; the Great Voyage also has something for financial institutions and business developers that will contribute to strengthening the financial infrastructure. Their offering is a blockchain solution that is customizable according to the needs of business developers and financial institutions.
TRON’s journey does not end here. The next stage is aimed to be launched somewhere in the middle of 2021 and will be called the Apollo. Content creators will be able to build their brands and offer Initial Coin Offering, the equivalent to Initial Public Offering, to their audience.
Moreover, Star Trek (TRON 6.0) is expected to be launched in 2023, and Eternity is 2025. The final & last stage is aimed to achieve the vision of decentralization and take the gaming industry to the next level. Apart from being able to create their very own gaming platforms, creators will have access to predictive market platforms and even fundraising opportunities.
The Foundation has already mapped the whole journey of TRON, and no matter what the future has in hold for the cryptocurrency, it is quite obvious that some of the upgrades are going to rock the industry to its core.
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What Drives TRON’s Price?
TRX's price trend is showing steady growth since its inception, but it picked up in 2019 with multiple factors influencing its value. The acquisition of the popular torrent site BitTorrent, helped put TRX on the map and contributed towards the company's plans and projects.
Other factors impacting TRX price include well-placed partnerships to extend TRON's reach, along with the PRs published by the enigmatic head of the company, Justin Sun. Almost every one of his tweets hypes up a new partnership or a new project prompts a price hike for TRX.
For instance, when Sun donated millions of dollars to a charity owned by Warren Buffet, the price of TRX rose significantly as TRON was positioned to have a momentous social impact. Similarly, TRX saw a price hike when TRON was linked to Keystore, a Samsung blockchain project.
Understanding the tricky cryptocurrency trading market is not an easy task. A lot of factors are at play simultaneously, which ultimately decides the price of cryptocurrencies.
Among other factors, there are 2 key factors that drive TRON’s price:
- Market forces
- Feasible investment environment
Here at Trading Education, we analyzed these two and some other factors that drive TRON’s price. Below we elaborated what we found out.
Factor 1: Market forces
According to Adam Smith, the father of Economics, the "invisible hand" is at play in the market. This invisible hand is what determines prices. The invisible hand is basically the market forces of demand and supply. The scarcity of an element increases its value. So, the more scarce Tron is, the higher its price will be.
Since each cryptocurrency's supply is capped, an increase in the demand pushes prices up to adjust to the limited supply. In economic terms, what we call the demand-pull inflation.
But when due to factors, the demand drops, then there's an excess of supply, which pulls the price downwards. In the case of Tron, with the digital content creation continuing to grow, the demand is going to increase.
These market forces can be manipulated to adjust the market prices of Tron through various measures.
Factor 2: Feasible investment environment
Not just for cryptocurrency investment but any kind of investment, a favourable investment environment is a must. Governments all over the world aim to foster environments that encourage investors.
Similarly, for cryptocurrencies, a favourable environment is going to encourage investment. In the case of Tron, as Tron is targeting the digital entertainment industry, the environment appears to be favourable.
The world is moving towards globalization, and the digital entertainment industry is expected to grow exponentially in the near future. And with the unique proposition of Tron that eliminates intermediaries & middlemen and gives more control to content creators, Tron is, undoubtedly, going to gain traction in the near future.
Although, COVID-19 has brought many uncertainties with itself, and even the world's most advanced economies are suffering terribly. So, the environment might not exactly be kind to investors currently.
In the investment world, word of mouth holds more importance than it should. What the hotshot investors are investing in and what influencers think about a particular cryptocurrency spreads like wildfire.
Dedicated news outlets provide updates and predictions about cryptocurrency prices. Many investors, especially amateurs, fall prey to the controversial and over-hyped news from these established outlets. Cryptocurrency investors are followed blindly by newbies, and demand is driven upwards.
As there are not many checks and balances in place, trade manipulation is also a very common practice. Prices can also be manipulated through pumping and dumping. With misleading or exaggerated statements, some investors drive up the prices of cryptos just so that they can sell their coins as the price hikes. Which then leads to market crashes.
In the age of marketing, the CEO, Justin Sun, has harnessed marketing very efficiently. He has been actively involved in promoting Tron, and it is through his efforts that Tron has been gaining popularity.
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Is TRON On Ethereum Network?
Tron is thought to be very similar to Ethereum, so much so that Tron was first launched on Ethereum's network. But Ethereum has been here longer than Tron and hence more popular. For commodities, substitutes play a vital role in their demand. For Tron, Ethereum's price and demand play an important inversely proportional role. As Ethereum gains more popularity, Tron will lose demand. Apart from Ethereum, other competing currencies also affect Tron's demand.
Why Should You Invest In TRON?
Tron's current price is $0.024168. As Tron's price is in decimals, even a slight change in the price will have significant implications on Tron's investment. Predictions from DigitalCoinPrice show that the price of Tron could be topped at $0.09. Their estimations are very hopeful, and in seven years, Tron could reach the price of $1.
Data Courtesy of DigitalCoinPrice
WalletInvestor.com’s predictions also show that the price might be capped at around $0.7 to $0.8.
Pros And Cons Of Investing In TRON
Like any other cryptocurrency that has pros and cons to investing in it, TRON has its own. Below we present them to you.
Pros Of Investing In TRON:
✅ Tron focuses on the advancement of entertainment content. Tron has a professional, dedicated team that aims to create a decentralized entertainment platform. This platform will be covering areas such as payment, streaming, video hosting and gaming portal. Therefore, Tron's future is very promising.
✅ Tron is backed by developers that have a strong background. Some of them were specialists at Ripple Labs before joining Tron.
✅ Tron has extremely low transaction fees. If you make a transaction with Tron, you have to pay $0.000005, which is extremely low.
✅ Tron can process 2000 transactions per second which means that its platform can handle a significant number of running applications.
✅ As the entertainment sector becomes more digital, Tron may become the first to apply blockchain technology in the industry. Consequently, the platform may have more attention in the future, and the price of TRX may increase.
Cons Of Investing In TRON:
❌ About half of TRX tokens are stored in a small number of addresses which has made the platform too centralized. Therefore, the owners of these addresses could be able to influence the price movement of TRX.
❌ The platform is still in its infancy. Although the network already exists and the first part of the blockchain launch has taken place, the Tron platform is still in its early stages of development, not completely ready for use, and there is too much hype about the coin already.
❌ The maximum supply of TRX is 101 billion, which is considered high and a disadvantage as it will take a while to reach the number.
❌ Tron has had some scandals throughout its existence, damaging its reputation. Some programmers noticed elements of plagiarism on the white paper of Tron, which was denied by the CEO Justin Sun. Such scandals have not done Tron any good, making investors reluctant to invest in TRX.
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- The TRON platform was created back in 2017 in Singapore, targeting the entertainment and content space.
- TRON is powered by TRX cryptocurrency, which is poised to eliminate the need for intermediaries in the financial sector as well, allowing for more frictionless transactions.
- TRON can process up to 2000 transactions in a mere second with zero transaction costs. This level of speed and virtually no transaction costs gives TRON some edge.
- The first phase of TRON, called the Exodus, is the content-sharing platform that directly connects content creators with buyers.
- The Odyssey software is designed to replicate the concept of “tipping.”
- The Great Voyage, also called TRON 4.0 offers a blockchain solution that is customizable according to the needs of business developers and financial institutions.
- TRON will launch three more stages: Apollo, Star Trek and Eternity.
- There are 2 key factors that drive TRON’s price: market forces and feasible investment environment.
- Predictions from DigitalCoinPrice show that the price of TRON could be topped at $0.09. Their estimations are very hopeful, and in seven years, TRON could reach the valuation of $1.
Hopefully, you feel somewhat motivated to start your investment journey after reading this article. If you have liked it, give us a like and share it in case there is someone else who would like to benefit from it.