- July’s fire statistics marked a reversal from June’s 17% drop.
- July recorded a 47% drop in total transactions on Tron, halting a 4-month upward trend.
Intent on growing market value over the long term, TRON continued to put deflationary pressure on its native token TRX. The network withdrew 467 million tokens from circulation in the month of July, according to Tronscan, a 2.4% increase from June figures. This performance also marked a reversal from June’s 17% drop in burn rate.
Source: Tronscan
Read TRONs [TRX] Price Forecast 2023-24
TRX goes up in smoke
A steady decline in the issuance rate makes a token scarce, which could boost demand in the market, leading to price increases.
As can be seen, the number of new tokens minted on the network remained largely constant. As a result, the net issuance rate, or inflation rate, fell further into negative territory, to -310.27 million in July. Notably, TRX has been in deflation for 326 straight days.
At the time of writing, there were approximately 89.6 billion tokens in public hands, down nearly 2.6% year-over-year (YTD). Measured in absolute terms, the data revealed that approximately 2.38 billion TRX tokens have been burned since early 2023, representing a significant contraction.
In addition, the supply of TRX has shrunk at a rate of 2.96% per year from December 29, 2019 to going to press.
Source: Tronscan
A look at Tron’s network growth
Tron continued to outperform other major blockchain projects in terms of network activity.
According to data analytics platform Artemis, daily active addresses on the Tron network reached 1.58 million on Aug. 1, eclipsing the second-placed BNB Chain and building a massive lead over chains like Ethereum. [ETH] and Solana [SOL].
Source: Artemis
Tron also performed well in terms of transaction activity. As of August 1, approximately 5.24 million transactions were executed on the blockchain, second only to the top-ranked Solana.
While Tron outperformed most of his rivals, a closer look at his individual performance revealed a sharp drop. According to Tronscan data, July recorded a 47% decline in total transactions, halting a 4-month upward trend.
Source: Tronscan
How much are 1,10,100 TRXs worth today?
TRX is still in the red
Surprisingly, TRX’s price trajectory showed a detachment from its deflationary momentum. The token is down 1.32% over the past 24 hours, with the weekly chart also showing losses of over 7%, per CoinMarketCap.
TRX was the tenth largest cryptocurrency in the market with a market cap of $6.86 billion at the time of publication.