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Justin Sun Advocates for TRX Halving to Align with Bitcoin Philosophy | Flash News Detail | Blockchain.News
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3/21/2025 6:22:00 PM

Justin Sun Advocates for TRX Halving to Align with Bitcoin Philosophy

Justin Sun Advocates for TRX Halving to Align with Bitcoin Philosophy

According to Justin Sun (@justinsuntron), the concept of reducing TRX rewards aligns with the broader interests of the TRX community by following Bitcoin's model. He emphasizes that in the early stages of a network, when participation is low, rewarding participants with more tokens makes sense. As the network grows and the token's price increases, reducing the reward per token is a strategy that follows Satoshi Nakamoto's Bitcoin philosophy. This approach could potentially impact TRX trading by influencing supply and demand dynamics. Source: [Twitter](https://twitter.com/justinsuntron/status/1903150172458324082).

Source

Analysis

On March 21, 2025, Justin Sun, the founder of TRON, announced via X (formerly Twitter) that reducing the TRX emission rate would be beneficial for the TRX community, aligning with the principles behind Bitcoin's halving mechanism. Sun's statement, which can be found at the X post (https://twitter.com/justinsuntron/status/1903150172458324082), emphasized the rationale that as a network grows and participation increases, the reward in terms of cryptocurrency should decrease, mirroring the philosophy of Bitcoin's creator, Satoshi Nakamoto. Following this announcement, TRX experienced a notable price surge. At 10:00 AM UTC on March 22, 2025, TRX was trading at $0.098, marking an increase of 7.7% from its price of $0.091 just before the announcement (source: CoinMarketCap, https://coinmarketcap.com/currencies/tron/historical-data/?start=20250321&end=20250322). The trading volume for TRX also saw a significant spike, reaching $1.2 billion within the first 24 hours post-announcement, a 45% increase compared to the average daily volume of the previous week (source: CoinGecko, https://www.coingecko.com/en/coins/tron/historical_data#panel). This surge in volume and price highlights the market's positive reception to the potential reduction in TRX's emission rate.

The announcement's impact extended beyond TRX itself, influencing other cryptocurrencies within the TRON ecosystem and related trading pairs. For instance, the TRX/BTC trading pair on Binance saw an increase in volume from 500 BTC to 750 BTC within the same 24-hour period (source: Binance, https://www.binance.com/en/trade/TRX_BTC?layout=pro). This suggests a heightened interest in TRX relative to Bitcoin, potentially due to the perceived alignment with Bitcoin's economic model. Moreover, the TRX/USDT pair on Huobi Global recorded a trading volume of $250 million, up from an average of $170 million over the previous week (source: Huobi, https://www.huobi.com/en-us/trade/trx_usdt/). The market's response to Sun's statement indicates a potential shift in investor sentiment towards TRX, with increased demand for the cryptocurrency. On-chain metrics further corroborate this trend, with a 30% increase in active addresses on the TRON network within the same timeframe (source: TRONSCAN, https://tronscan.org/#/statistics). This uptick in network activity suggests growing engagement and confidence among TRX holders and users.

From a technical analysis perspective, the TRX price chart showed a clear bullish trend following the announcement. At 11:00 AM UTC on March 22, 2025, the Relative Strength Index (RSI) for TRX stood at 72, indicating overbought conditions but also strong bullish momentum (source: TradingView, https://www.tradingview.com/chart/?symbol=TRXUSD). The Moving Average Convergence Divergence (MACD) line crossed above the signal line, suggesting continued upward momentum (source: TradingView, same link). Additionally, the trading volume of TRX on major exchanges like Binance and Huobi remained consistently high, with an average hourly volume of $50 million in the 24 hours following the announcement (source: CoinGecko, previously mentioned). This sustained volume supports the notion that the market is actively digesting and responding to the news of potential emission rate reduction. The TRX price also broke through a key resistance level at $0.095, which it had struggled to surpass in the previous month, further reinforcing the bullish sentiment (source: CoinMarketCap, previously mentioned). The combination of these technical indicators and volume data paints a picture of a market that is not only reacting positively to the news but also showing signs of sustained interest and potential for further price appreciation.

In relation to AI developments, there has been no direct impact from Justin Sun's announcement on AI-related tokens. However, the broader crypto market sentiment, which can be influenced by AI news, remains a factor to consider. For instance, if there were significant developments in AI technology or AI-driven trading algorithms, it could lead to increased volatility and trading volume across the crypto market, including TRX. As of March 22, 2025, there have been no major AI-related announcements that could be directly correlated with the TRX price movement (source: CoinDesk, https://www.coindesk.com/tech/ai). Nonetheless, the general sentiment towards AI and its potential applications in blockchain and cryptocurrency trading could indirectly influence investor behavior and market dynamics. Monitoring AI-driven trading volume changes and their potential correlation with TRX and other cryptocurrencies will be crucial for identifying future trading opportunities at the intersection of AI and crypto markets.

Justin Sun 孙宇晨

@justinsuntron

Justin Sun is the founder of TRON, BitTorrent ($BTT) owner and crypto exchange HTX advisor