TRON Ecosystem To Undergo Changes – A Bane Or Boon To TRX Price?

Christian Encila

Last Updated: December 6, 2022 8:00 am

3 mins read

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As the newest committee proposal nears completion, Tron will undergo dramatic changes. An update tweet states that the fee cap for smart contracts will be raised from 10,000 to 15,000 TRX coins.

The developers believe this would mitigate the risk connected with smart contracts by reducing the number of low-value smart contracts created on the ecosystem.

At the same time, it will greatly increase the #TRX staking rate and burning volume, further expand the #TRX deflation rate to 3.17%, and the annual burning volume of #TRX on the #TRON network will reach 5 billion.

👀For more analysis, please refer to: https://t.co/AM8YebxxvG

— TRON DAO (@trondao) December 4, 2022

Let’s take a quick look at TRX’s performance:

Improvements to the Tron ecosystem have boosted investor confidence.
The indicators point to the formation of a robust uptrend.
Price could rise to $0.05560 or higher on a rebound from the current level of $0.05274.

As the burn rate of TRX increases with the increase in fee limit, the deflection in the ecosystem would also grow, from -1.39% to -3.17%. According to the developer’s Medium post, a rise in fee limitations would also impact the staking rate.

In aggregate, the shifts herald the beginning of bullishness in TRX, however CoinGecko reports a 1.1% decline in the daily timeframe price of TRX. Will these changes influence the price of TRX?

What The Coming Days May Bring For Tron

There is an indication that TRX is beginning to rebound from the market downturn that followed the FTX disaster. In Tuesday’s trade, TRX shows a red candle at $0.05278. It would appear that the RSI statistics are bullish in the short and intermediate term, however this is negated by the fact that the RSI has a bearish crossover.

Chart: TradingView

The MACD indicator corroborates this. Despite the fact that the market appears to favor buyers, bearishness can still be observed as the EMAs of the MACD indicator trend downwards.

Chaikin’s money flow index suggests that bulls are still in charge of the market, and this optimistic sentiment is reinforced by the MFI of TRX, which opposes the price decline. This indicates that the developing decline has no actual impetus.

Investors and traders could rely on the $0.05 support, which halted additional declines on November 11, when both cryptocurrencies and equities collapsed following the November 10 release of the Consumer Price Index.

Solid Bullish Momentum For TRX?

According to Messari’s measures of volatility, TRX is relatively stable. This further reinforces the optimistic conclusion anticipated by the community. With Bitcoin’s price breaking past the $17K barrier and TRX’s increasing link to BTC, we can anticipate further bullishness.

Even though the price trend is falling, a rebound from $0.05274 to $0.05560 and above is inevitable.

TRX total market cap at $4.8 billion on the daily chart | Featured image: Freepik, Chart: TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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