- The circulating supply of TRX was 90.4 billion, down more than 7% year-over-year.
- Indicators suggested that market sentiment for TRX was weak.
With the intention of growing its market value over the long term, TRON [TRX] has taken deliberate steps to put deflationary pressure on its own token TRX.
Read TRONs [TRX] Price Forecast 2023-24
The network DELETED more than 20 million TRX tokens out of circulation on May 16, marking the biggest increase in burn rate in a month. Data from Tronscan showed that the burn rate increased significantly in 2023.
As the number of new tokens minted on the network remained largely constant, the net issuance rate or inflation rate dropped further to -15.43 million, extending TRX’s deflationary streak. 
Source: Tronscan
The ‘burn’ is real!
Notably, TRX was in deflation for 249 consecutive days, according to data from Tronscan. With the peak in combustion activity, the circulating supply of TRX shrunk significantly in 2023.
At the time of writing, there were approximately 90.4 billion tokens in public hands, representing a decline of more than 7% year-over-year (YoY).
For the period from December 29, 2019 to going to press, the annual inflation rate for TRX was -2.89%.
Source: Tronscan
Tron maintains dominance
Tron continued to outperform other major blockchain projects in terms of network activity.
According to data analytics platform Artemis, daily active addresses on the Tron network reached 1.88 million on May 16, eclipsing the second-ranked BNB Chain and building a massive lead over chains like Ethereum. [ETH] and Solana [SOL].
In addition, the number of transactions executed on the network skyrocketed in the past week. As of May 16, more than 9 million transactions were recorded on Tron, second only to the top-ranked Solana.
Source: Artemis
TRX fails to impress
The impressive performance on network traffic began to pull TRX out of its predicament. At the time of writing, TRX was valued at $0.07114, a marginal increase of 0.44% in the 24-hour period, according to CoinMarketCap.
TRX has been under heavy selling pressure over the past month, resulting in a value loss of over 13%. The ongoing recession has eroded investor confidence in TRX, as evidenced by negatively weighted sentiment.
How much are 1,10,100 TRXs worth today?
The drop in price also put a damper on the coin’s trading volume, as many existing holders preferred to take a wait-and-see approach.
Source: Sentiment
The negative funding rate for TRX on crypto exchange Binance indicated that bearish leveraged traders, betting on price losses, were dominant in the market.
Source: Sentiment
