Despite the overall bearish sentiment dominating the cryptocurrency market and most of its assets struggling to stay in the green zone, one of them is breaking a record – the period of time spent in a state of deflation.
As it happens, TRON (TRX) has been in a state of deflation from the period between starting October 28, 2021, and October 12, 2022, which equals to 50 weeks or close to one year, as announced by TRONSCAN, the official explorer of the TRON blockchain, in a tweet on October 17.
According to the announcement, the total amount of TRON’s tokens at the end of this deflationary period reached 9.6 billion TRX. As per the data, the number of TRX generated hit a maximum of 5,273,312 on August 14, 2021, while the number of tokens burned hit a maximum of 1,106,056,407 on May 22, 2022.
TRX as deflationary cryptocurrency
TRON’s token has been touted as being a deflationary cryptocurrency after the network’s community agreed in February 2021 to make it deflationary by introducing a burning mechanism that reduces its total circulating supply over time.
This means that the number of its coins in circulation is decreased from time to time, making the coin more valuable, as opposed to inflationary cryptocurrencies and traditional fiat money, the value of which depreciates as banks and networks mint new coins.
In April 2021, TRX completed its first deflation in history – from March 30, 2021, to April 5, 2021, with TRON proclaiming the move as making it the world’s first cryptocurrency to move from inflation to deflation, thus consolidating its value.
Breaking other records
Meanwhile, TRON has broken another record – it has registered more than 4 billion network transactions in 24 hours alone after rumors of its founder Justin Sun being the real buyer of the crypto exchange Huobi.
On top of that, TRON’s staking value exceeded $12 billion, and the number of accounts created on the network surpassed 116 million, three months after TRON became the second-largest public chain by stablecoin market capitalization.
At press time, the price of TRX stands at $$0.06257, which presents an increase of 1.88% on the day, but is still a drop of 2.13% compared to seven days before, as per CoinMarketCap data.
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Source: https://finbold.com/tron-trx-has-been-in-a-deflationary-state-for-almost-a-year-heres-what-it-means/