TRON price enters uptrend with net negative issuance after 6.7 million TRX were burned overnight
- Tron’s issuance turned negative on April 3, 2022, as 6,708,836 TRX was burned, and the net production ratio dropped below zero.
- As the altcoin continues its uptrend, Tron price has posted 16% gains over the past two weeks.
- Net negative issuance has fueled a bullish narrative among Tron’s investors.
Tron price recently suffered a drop before the altcoin started its recovery. The altcoin posted double-digit gains, wiping out losses from before and climbing higher.
Tron price ready to breakout in response to supply shortage
Tron price is on track to resume its uptrend as net issuance of the altcoin turns negative. On April 3, 2022, a total of 6,708,836 TRX was burned. The net issuance of Tron turned negative, fueling a bullish narrative among investors.
Typically, a net negative issuance indicates a shrinking supply that results in a shortage. The altcoin’s price could begin an uptrend in response to the drop in Tron supply.
3rd April: #TRON burns more than 6,708,836 coins with a net production ratio less than zero -1,642,852 pic.twitter.com/TRpqXpBLNl
— TRON Community (@TronixTrx) April 4, 2022
The total value locked on Tron has surpassed $57.8 billion and continues its climb. While projects on the Tron network continue building, it contributes to the rising total value locked on the blockchain.
Binance recently announced the listing of Tron on its US exchange. The listing fueled the adoption of Tron and increased the altcoin’s demand among investors. The spike in on-chain activity of Tron can be attributed to the listing by leading cryptocurrency exchanges, demand from investors and new partnerships in the network.
Analysts have evaluated the Tron price trend and network activity; they observed a rise in buy and hold type investors and portfolio managers. The demand for Tron is increasing from retail and institutional investors.
The altcoin’s price is above the 100-day Simple Moving Average, close to its 52-week high.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
