Tron started off as an ICO in early 2017. Now, it finds itself sitting at the #20 spot for the largest market cap. With a bright future, unique protocol, and community support, Tron is set to take a spot in the top 10 cryptocurrencies in no time. In the past few weeks, Tron has grown nearly 100% in the past month with a trade volume growing every day. Is Tron a good investment in 2021?
What is Tron?
Tron first appeared in 2017. The original founder Justin Sun, originally Ripple’s chief representation, had the idea to start a non-profit organization which would focus on building the infrastructure for a decentralized internet. When the Tron ICO launched, TRX flew off the charts. The initial coin offering price was $0.0019/TRX. Now TRX has reached a staggering $0.06/TRX!
Tron features a very unique protocol which helped it stand out from other blockchains. If you spent a lot of time investing in Ethereum, you know about the absurd gas prices. This is where Tron mixes stuff up a bit. The network uses a DPoS system where elected nodes approve the transaction blocks. This means instead of paying a hefty fee to miners, Tron users can stake their TRX in exchange for “Power”, allowing them to make transactions for free. After 72 hours, users can withdrawal their power back as TRX. In addition, staking TRX allows you to vote on super representatives and earn a APY.
Is Tron (TRX) a Good Investment in 2021?
Many professional traders have contrasting speculation on the future of Tron. In 2020, Tron has seen a lot of volatility making forecasting it’s future value quite challenging. Following its significant growth in Feb of 2021, Tron has a good chance of hitting $0.1 by late 2021. On the other hand, Tron has a chance of following a bearish trend. If this occurs, it wouldn’t be unlikely for Tron to drop back down to $0.04, or even $0.03.
Nonetheless, Tron has a made a great ecosystem for Altcoins. If some promising Dapps and Altcoins reach the Tron blockchain in 2021, TRX is bound to skyrocket. In the end, this is still all speculation. Nobody is certain where Tron will go, but it’s definitely a promising project. If you want to diversity your portfolio a bit, holding and staking some TRX on the Tron network may be a smart decision. After all, you still earn from staking!