The Tron network has performed remarkably despite the bearish market situation hovering over the crypto industry. The bears continue to mount pressure on the rest of the cryptocurrencies, but Tron’s TRX continues to surge.
The network is putting effort into maintaining the positive performance of its native token by executing multiple token burns. This will help offset excess coins in circulation and balance the existing value of the TRX token.
Close to 300 Million TRX Burned
According to Justin Sun, Tron’s CEO, many TRX tokens have been moved to dead wallets. Sun added that the transaction is worth about $24 million. At the moment, the TRX token is trading at $0.079.
Furthermore, according to the Tron community, over 385 million tokens were burned on May 26 to back up the network’s stability.
Meanwhile, the Whale Alert revealed that it had tracked two similar transactions over the past 24 hours. Accordingly, more than $14.9 million worth of Tron tokens, totaling 186 million, were transferred to an anonymous wallet.
However, the Tron network has yet to clarify whether these transactions were part of the ongoing burn activity.
Moreover, the Tron network claims that it is in a deflationary state. The network has been experiencing a rapid price decline for some time now. It is reported that the network sent a whopping 7.7 billion TRX coins to an inactive wallet in 30 weeks.
The Tronscan disclosed that the TRX tokens burned are equivalent to the decentralized USDD stablecoin, which exceeds 7.2 billion coins. Sun is confident that the next days will be good for the network despite the setback.
Sun aims for the network to attain the 1 billion TRX burn threshold before halting the process.
Burn Transactions Highest in May
According to available data, the burning of Tron tokens saw a significant increase in May. The increase has since reached the 1 billion token burn mark twice a month. On May 5, the Tron network launched USDD, another stablecoin pegged by the TRX token.
The new USDD stablecoin is another laudable feat of the Tron network and has surpassed expectations. Some weeks after its launch, the stablecoin managed to get more than $600 million in circulation.
What is interesting about the latest development is that it came amid the market crash of the Terra UST stablecoin. The meltdown of the Terra ecosystem has sent shivers across the entire crypto market, and the market hasn’t recovered.
Despite the heightened fears about stablecoins following the unpleasant incident, the Tron USDD stablecoin is gaining. This landmark achievement means that the Tron network is the only digital token not affected by the recent market collapse.
Ultimately, this is a positive sign for the industry, which started the year in challenging circumstances.
Meanwhile, the TRX token has climbed up the ladder to occupy the 13th spot among the top cryptocurrencies. Tron has a market capitalization of more than $7.5 billion and a trading volume of more than $1.26 billion.