TRX Halving Buzz May Turn This Token Into the Next Top 3 Cryptocurrency

The Tron (TRX) community is abuzz with speculation about a potential TRX halving, which could turn the token even more deflationary. By: Aloukik Sarkar

The Tron (TRX) community is abuzz with speculation about a potential TRX halving, which could turn the token even more deflationary. As rumors swirl about the possibility of slashing TRX emissions by 90%, several validators expressed concerns over the impact on their earnings and interest in keeping the network running.

Responding to these questions, the founder of Tron, Justin Sun, provided further details on the proposed TRX halving and its implications. He also touched upon the integration of Tron with Solana (SOL) for seamless asset transfer and Sun’s advisory role at World Liberty Financial International (WLFi).

What is TRX halving and why does it matter?

In a recent post on a crypto community platform, several Tron validators raised questions regarding the proposed TRX halving and its impact on validators’ economics. One validator pointed out that a 90% reduction in TRX emission would drastically affect validators’ gains, especially with the current low TRX price. Another validator highlighted that slashing TRX emission by 90% might disincentivize validators from continuing to validate the network.

These concerns stem from the fact that Tron’s economic model is based on a token burning mechanism to create scarcity and long-term sustainability. TRX is used to pay for network fees and tips, which are burned to reduce the circulating supply.

However, with the proposed TRX halving, which is part of Tron’s strategy to adapt to the changing market conditions and ensure long-term sustainability, there will be a significant reduction in TRX emission. This move is similar to Bitcoin’s strategy for halving.

But, in an update to validators and the broader Tron community, Justin Sun shed light on the proposed TRX halving and its implications.

According to a recent report by AZCoin News, Justin Sun responded to these queries, explaining that even with the reduction in TRX emissions, it would still be worthwhile for validators to validate the network.

In his statement, Sun noted that the new coins generated from block rewards would still be allocated to validators, even after the TRX halving. Moreover, he pointed out that Bitcoin's model had already been tested successfully over 14 years, and Tron could follow suit.

“After the TRX total amount is halved, the new coins generated from block reward will still be allocated to Tron validators. Also, we can see that BTC has been using this model for 14 years and it’s still running well. So we can follow the same strategy.”

Is Tron being included in a U.S. crypto-reserve?

In addition to the TRX halving conversation, Tron is making significant strides across the crypto landscape. A substantial integration between Tron and Solana is forthcoming, facilitating efficient asset transfer between the two blockchains.

This integration will be instrumental in facilitating seamless cross-chain transactions and liquidity. Specifically, it will enable users to effortlessly move their TRX from the Tron Chain to the Solana Chain, and vice versa.

Furthermore, Justin Sun has recently assumed an advisory position at World Liberty Financial International (WLFi), an organization closely associated with former President Donald Trump. This engagement has sparked speculation that TRX may be included in a crypto-reserve being backed by the U.S. government.

With several government officials investing in cryptocurrencies, and President Trump known for his interest in financial matters, it wouldn't be surprising for them to collaborate on ventures like this.

As speculation runs high about TRX's role in the U.S. government's crypto strategy, investors are starting to notice the significant gains that Tron has generated this year.

TRX price analysis: Is a breakout imminent?

With so much wind behind Tron, TRX’s price has been moving. With increased enthusiasm, traders are watching key technical indicators to determine if this rise has legs. Next, we will dissect TRX’s price on a 4-hour chart by pivoting through moving averages, RSI, and key support and resistance levels to gain insight into TRX’s direction.

The trading session on March 21 commenced with a moderate downtrend, unfolding after the bullish momentum encountered in the previous session. A glance at the chart reveals an integration of a 20-period exponential moving average (EMA) and a 50-period EMA, which is commonly known as a golden cross, at 05:25 UTC.

This alignment occurred simultaneously with an overbought signal from the relative strength index (RSI) and observed a pushing of the prices in an uptrend channel.

After the strong bullish momentum that pushed the TRX price to rise from the key support level of $0.2327 to reach the high of $0.2373 at 07:55 UTC, a death cross appeared as the 20-period EMA crossed below the 50-period EMA. This integration of EMAs, also known as a golden cross, is often used by technical traders to identify the continuation or reversal of an existing trend.

However,