Just about a month ago, we published a piece on the top 5 coins with an actual user base beyond speculation.
Now, one of them, Justin Sun’s Tron, has climbed 30% (measured against USD) in a single month.
While long-term, hodling BTC still vastly outperformed…
…short-term traders will certainly be delighted, given almost 60% price appreciation versus BTC in recent weeks.
The ongoing demand for TRX to power the majority of the globe’s USDT transfers has caused a steady rise in the USD price of Tron (TRX) since the beginning of 2023.
What is the outlook for Tron from here?
Well, not much has changed from our initial assessment in July.
While the fundamentals of Tron versus Bitcoin as decentralized stores of value are incomparable – Tron is essentially entirely controlled by Justin Sun and his group – there is strong and factual market demand for Tron (TRX) to facilitate USDT (Tether) transfers on its network.
What does this mean for the price of Tron?
We don’t have a crystal ball, but as soon as speculators pile in, you can be certain that the price will correct to the mean in the long run.
That said, the Tron blockchain provides a valuable service to millions of users worldwide on a daily basis, all of whom need to acquire Tron (TRX). So, there’s that.
However, keep in mind:
If the USD price of Tron becomes too expensive, users might switch to alternative, cheaper blockchains to transfer their stablecoins, potentially putting Tron’s network effect at risk.
On the other hand:
Thanks to the high centralization of the Tron network, Justin Sun can take quick and decisive action to prevent Tron from losing significant market share in the stablecoin transfer protocol competition.
However, such actions would likely decrease the demand for TRX and potentially cause any ongoing speculative bubble to burst.
Generally, we discourage speculation on short-term price movements of specific tokens unless you have done thorough research. We recommend adopting a longer-term approach in your investment journey.
Nevertheless, if you need to acquire a small or large amount of TRX—whether as a user or a speculator—you can do so with no sign-up required via the BitcoinVN crypto-to-crypto swap feature.
You can also purchase Tron (TRX) with Vietnamese dong (bank wire or cash).
For purchases over 5,000,000 VND, account verification will be required.
Yield on Tron?
If you want to move further out on the risk curve:
Yes, we do have a Tron staking vault, currently offering about 25% APR (as of the time of writing).
Are there risks?
Yes.
It is a fully custodial solution, and your funds are actively used to provide liquidity for swap activity on the BitcoinVN platform.
We do not recommend using the staking feature unless you have fully understood its risk profile.
Keeping your Tron safe
A more advisable solution is to self-custody your crypto, including Tron.
Which hardware wallets support Tron (TRX)?
Currently, only Ledger devices support Tron natively.
So, if you plan to use USDT on Tron and/or build a “war chest” of TRX, Ledger hardware wallets are your best option.
BitcoinVN Shop is an authorized supplier of Ledger devices in Vietnam, ready to ship directly from our warehouse without customs hassle.
