TRON and its native token TRX have performed well in the past few months, with impressive market capitalization growth. According to Messari's tracking for the third quarter of 2024, TRX's market capitalization increased by 24%, from nearly $11 billion to $13.5 billion. This is the seventh consecutive quarter that the token has increased its circulating market capitalization, pushing the company into the top 10 cryptocurrencies by market capitalization.
TRX’s price surge also extended to the TRX/BTC pairing, which also saw a 25% gain. The token ranks just behind XRP and Dogecoin in the list of top cryptocurrencies by market cap. It is primarily supported by USDT trading and was launched on the first “meme expo and online platform” SunPump.
TRON gets a boost from SunPump
The TRON network saw a significant increase in transaction volume in the third quarter due to the launch of SunPump. TRX transaction volume reportedly grew 29% in the third quarter to $151 million. In August alone, SunPump destroyed more than 270 million TRX, worth $42 million. This is believed to be the largest single-day destruction of TRON. As a deflationary token, TRX is destroyed every time it is used in a transaction to support its value.
TRON supply drops in Q3
TRON has set a fixed supply of 100 billion tokens to protect its value and prevent inflation. The market supply of TRX has dropped from 87.20 billion in the third quarter to 86.62 billion. This is supported by the network's destruction schedule that exceeds the minting rate of new tokens. In short, TRX's annualized inflation rate reached -2.7%, compared to -2.4% in the previous quarter.
TRON strives to find a balance between burning and issuing new tokens. The network aims to reduce the circulation of tokens, which can benefit holders and investors. In addition, TRX staking yield increased by 13% month-on-month, which attracted more users and investors.
The Future of TRON
TRON is now one of the top cryptocurrencies by market cap, currently valued at $13.5 billion. Holders and users can expect continued growth in the network due to increased revenue, helped in part by the launch of new meme coin fairs and platforms. Additionally, the network’s token destruction policy currently exceeds its minting policy, boosting the potential value of the token.
Finally, Dune’s statistics show that over 90,000 meme coins have been issued through the TRON network using SunPump. August 20th was the most active day with over 7,500 meme coins issued, highlighting the platform role of meme coins in sustaining TRON.
