TRON’s Market Cap Surges to $14 Billion: A Look at SunPump’s Impact
TRON’s Impressive Market Cap Growth
TRON, powered by its native token TRX, has experienced a remarkable surge in recent months, significantly boosting its market capitalization. Data from Messari for Q3 2024 reveals a 24% increase in TRX’s market cap, jumping from nearly $11 billion to $13.5 billion. This impressive growth marks the seventh consecutive quarter of rising market capitalization, solidifying TRON’s position among the top 10 cryptocurrencies by market cap.
The bullish momentum extends to the TRX/BTC pairing, which also recorded a 25% surge. Currently, TRON sits below XRP and Dogecoin in the ranking of top cryptos by market cap, fueled primarily by USDT transactions and its presence on SunPump, the innovative ‘meme fair and online platform’.
SunPump Propels TRON’s Growth
The launch of SunPump has catalyzed a dramatic increase in transaction volume on the TRON network during the third quarter. Reports indicate a 29% surge in TRX transactions, reaching $151 million. August alone saw over 270 million TRX, valued at $42 million, burned on SunPump, establishing a new record for the largest single-day burn for TRON.
As a deflationary token, TRX is burned with every transaction, contributing to its rising value. This burning mechanism further amplifies the impact of SunPump on TRON’s market dynamics.
TRON’s Shrinking Supply
TRON maintains a fixed supply of 100 billion coins, safeguarding its value and preventing inflation. In Q3, TRX’s market supply decreased from 87.20 billion to 86.62 billion, a direct consequence of the network’s burning schedule surpassing the minting of new tokens.
This trend translates into a -2.7% annualized inflation rate for TRX, a notable improvement from the previous quarter’s -2.4%. TRON strives to achieve a delicate balance between burning and minting new tokens, ultimately aiming to reduce the circulating supply, which benefits holders and investors. Furthermore, the yield on staking TRX has witnessed a 13% quarter-over-quarter increase, attracting new users and investors.
Promising Future for TRON
With its market cap now exceeding $13.5 billion, TRON firmly establishes itself as one of the leading cryptocurrencies. The network’s sustained growth trajectory is fueled by increasing revenue, particularly propelled by the launch of SunPump, the new meme coin fair and platform.
The token-burning policy, outpacing the minting of new tokens, continues to bolster TRX’s potential value. Data from Dune reveals that over 90,000 meme coins have been launched on TRON’s network using SunPump, with August 20th witnessing a record-breaking 7,500 coin releases, highlighting the platform’s significant role in TRON’s success.