Analyzes the performance gap and its impact on crypto investors

In a world where digital currencies rule and technology advances at breakneck speed, Tron (TRX) has entered the scene as a formidable player, challenging Ethereum’s (ETH) dominance and becoming among the dominant forces in the cryptocurrency market.

Tron’s lightning-fast transactions and minimal fees have made it an investor favorite, attracting more and more investors and enthusiasts. According to Google Trends, Tron has now overtaken Ethereum in terms of social interest, cementing its position as a sought-after crypto.

This increased interest may be the result of a number of factors, such as the network’s distinctive features and benefits, favorable media coverage, or increasing adoption by individuals and businesses.

Image: The Daily Hodl

In the blockchain sector, two major token standards are TRC20 and ERC20. ERC20 is an Ethereum blockchain token standard, while TRC20 is a Tron blockchain token standard. For the creation and use of tokens on their respective blockchain networks, both standards have been widely adopted by developers and consumers.

Recently, interest in its token standard, TRC20, has grown relative to Ethereum’s ERC20 standard. A keyword comparison between TRC20 and ERC20 shows a huge increase in search volume for Tron’s token standard.

Although TRX’s price volatility has decreased, trading volume has also been down, which is cause for concern. This downward trend in trading volume can be interpreted as an indication of an impending price correction.

TRON (TRX) Slightly up in the last week

At the time of writing, TRX was trading at $0.0673, up 1.0% in the last 24 hours and 2.3% in the last week. The cryptocurrency is up 5.5% on a biweekly basis and 14% on a monthly basis, data from crypto market tracker Coingecko shows.

Source: Coingecko

It is important to note that market corrections are common in the cryptocurrency market and can happen quickly and unexpectedly, resulting in a significant price drop.

Token Terminal, a platform that provides insights and analysis on crypto projects, has reported that Tron’s development activity has slowed significantly. Over the past 30 days, the number of active developers on the Tron network has dropped by almost half.

Lack of development activity

This decrease in developer activity may mean a lack of future Tron protocol updates or upgrades. Without regular updates, Tron may struggle to keep up with the competition and meet users’ changing demands. The lack of development activity may also indicate a decline in community engagement, which is critical to the success of any blockchain project.

In addition, daily activity on the Tron network has decreased by 12.0% over the same time frame, which may indicate a decline in network adoption and utilization. These factors may cause investors and consumers of Tron to be concerned about the future of the network.

TRX total market cap now at $6 billion on the daily chart at TradingView.com

Meanwhile, Tron’s weighted sentiment has been steadily rising, indicating that the cryptocurrency community has a positive view of TRX. Some analysts believe that the recent behavior of whales, which have shown a growing interest in TRX, could be one of the reasons for the price increase.

However, the concentration of whales holding TRX could contribute to the centralization of the network, which could be of concern to retail investors. If these whales decide to sell their positions, the coin price can drop dramatically, resulting in significant losses for coin holders.

– Featured image from GoodReturns