Profitability of Investing in TRX in 2022
Tron is an innovative blockchain project that intends to become dominant in the 2020s. Its strategy to achieve this is with drastically improved blockchain performance. Tron currently processes over 5-10 million transactions per day and gives its users access to zero transaction fees. TRX is also one of the fastest-growing tokens, with TRX to BTC transactions available on 130+ crypto exchanges.
Here we’ll explore the Tron ecosystem, review its market performance, look at some expert price predictions for 2023 and 2025, and decide if TRX is likely to be a profitable investment.
Exploring the Tron Ecosystem
Tron achieves its famed high scalability with three-layered blockchain architecture. The chain is split into a storage layer, core layer, and application layer. Each of these layers has its specific role. This optimization of functionalities is what gives Tron its scalability advantage. The blockchain uses a delegated proof-of-stake consensus algorithm, which is also built for its high transaction throughput.
This high scalability allows it to offer free transactions to users that stake a certain amount of Tron. Otherwise, there is a negligible transaction fee of a fraction of a cent, which is mainly in place to prevent denial of service spam attacks.
The top decentralized apps in the Tron ecosystem are the SunSwap exchange, DeFi lending platforms like JustLend and BSG, and gambling application WINk.
TRX Market Performance
TRX started trading as an Ethereum ERC-20 token in 2017. Its price jumped an astonishing 100x from $0.002 to $0.22 between 2017 and 2018, which turned out to be the all-time high it still has not broken. The network has had strong transaction volume growth over the years, growing from around $2 million per day in 2017, to its peak of over $10 billion per day in April 2021. It has since settled down to around $400 million per day in 2022.
TRX is currently trading at around $0.06-$0.07, after a 30% collapse in June 2022 when the Tron DAO was attacked. The market cap is $6.3 billion, with a circulating supply of 92 billion TRX.
TRX Price Prediction from Experts
Here are TRX price forecasts from various expert sources for the short and medium term:
| 2023 Forecast | 2025 Forecast | |
|---|---|---|
| PricePrediction.net | $0.12 | $0.25 |
| DigitalCoinPrice | $0.10 | $0.13 |
| Gov Capital | $0.152 | $0.353 |
| Average forecast | $0.12 | $0.24 |
The average of these forecasts sees Tron almost doubling in 2023, and more than tripling in 2025. This forecast is roughly in line with other crypto forecasts, so this predicted growth is mainly driven by an expanding crypto market. If Tron can keep taking market share from ETH, the TRX price could grow even faster than these forecasts.
Benefits of Buying TRX
The main reasons you should own TRX are:
- It’s a crypto investment with high growth possibilities.
- You can use it on Tron DeFi apps and games.
- You’ll have access to free TRX transactions if you stake some TRX tokens.
- It’s a method of diversifying your crypto portfolio beyond BTC and ETH.
- TRX is available on over 130 exchanges.
- Shielded TRX transactions can be completely anonymous. This is especially useful on anonymous exchanges where you simply look up the TRX, BTC, or AGIX price, and execute a transaction without having to verify your ID.
Investing in TRX: Worst- and Best-Case Scenarios
The best case scenario is that the crypto ecosystem recovers as predicted by the forecasters, and TRX manages to continue its rise as a competitor to ETH and others. If the bold Gov Capital forecast comes true, then your $1,000 in 2022 will turn into $5,000 by 2025. If the more reserved DigitalCoinPrice forecast comes true, then a $1,000 investment will turn into $1,857 by 2025. Of course, the absolute worst-case scenario is that the Tron network fails and TRX goes to zero. There’s always a possibility of this happening in the crypto market.
Overall, Tron looks like a promising project with innovative technology, decent network usage, and strong forecasted price growth from experts. This makes TRX token a good choice for investment in 2022, especially if you’re willing to hold onto your investment until 2025.
