Tron debuts on Ethereum, hits 1-year high: What next?
- Ethereum is the largest network for DeFi and dApps, with a TVL of $27.04 billion.
- The news of the bridging pumped TRX to its highest value since May 2022.
Justin Sun, founder of the TRON [TRX] blockchain, announced that the network’s native token, TRX, will be fully accessible on the largest altcoin network, Ethereum [ETH].
According to Sun, this was made possible by using the BitTorrent Bridge, a cross-chain transfer solution which facilitates movement of assets and data between blockchains.
The news of the bridging pumped TRX to its highest value since May 2022. At the time of writing, it had surged by 9.59% in the 24-hour period to be valued at $0.08356, data from CoinMarketCap revealed.
#TRON (#TRX) has now expanded its reach by going live on the #Ethereum blockchain by leveraging the #BitTorrent bridge . With the contract address 0x50327c6c5a14dcade707abad2e27eb517df87ab5, #TRX is now fully accessible within the Ethereum ecosystem.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) June 2, 2023
TRX enters a new universe
The move has the potential to boost TRX’s liquidity like never before. It can help TRX holders to access the wide array of decentralized finance (DeFi) protocols functioning on the Ethereum ecosystem.
Similarly, Ethereum users will be able to utilize the bridged TRX token to access applications on the Tron network. This addresses one of the major issues with blockchains – lack of interoperability.
Recall that, Ethereum is the largest network for DeFi and dApps, with a total value locked (TVL) of a staggering $27.04 billion at press time, according to data from Artemis. On the other hand, Tron, which comes second-best in the list, held assets worth $5.55 billion.
Source: Artemis
Tron gets busier
The Tron network has been on a tear lately, witnessing a massive spike in network traffic. The chain hit a new record high in daily transactions, processing 11.47 million transactions on 2 June, as per Tronscan.
In the last 30 days, the average daily transaction on TRON was 8.78 million.
Overall, the total number of transactions increased by 1.6% in the last month, reflecting growing demand for the proof-of-stake network.
Source: Tronscan
How much are 1,10,100 TRXs worth today?
Deflationary trend continues
With the intention of long-term market value growth, TRON continued to apply deflationary pressure on TRX. The network removed about 17.21 million tokens out of circulation on 2 June.
As the number of new tokens produced on the network stayed mostly unchanged, the net issuance rate, or inflation rate, decreased further to -15.43 million, extending TRX’s deflationary streak.
With the spike in burn activity, TRX’s circulating supply contracted considerably in 2023. At the time of writing, about 90.2 billion tokens were in public hands, having shrunk nearly 2% on a year-to-date (YTD) basis.
Source: Tronscan
