Tron increases its energy cap to 120 billion to increase network activity and lower gas fees.
The Tron community has successfully raised the network’s energy cap to 120 billion following the SunPump frenzy last week. The announcement, which was made by Tron founder Justin Sun, on his X page, stated that the move is meant to reduce network traffic and lower transaction costs as meme coin projects grow on the platform.
Proposal No. 92 of the TRON community is now in effect, raising the energy cap to 120 billion. This means more transactions for TRX stakers, lower Gas Fees, and increased network activity. I’m impressed by the TRON community’s execution. https://t.co/RbwJvQ75Ds
— H.E. Justin Sun 孙宇晨(hiring) (@justinsuntron) August 25, 2024
The energy cap increase, implemented through Proposal No. 92, will benefit Tron stakers by reducing gas fees and increasing network activity. Sun praised the Tron community for its efficient execution of the proposal.
Prior to the announcement, Sun explained that reducing gas fees and raising the energy cap would not hurt the network’s profitability. Instead, the fee cut could help increase daily transactions to over 20 million in the next three months, which could help expand market share and raise profit.
Sun added that with this in place, the network’s total revenue could hit $3 billion in the next 12 months, while $1 billion will be burnt, and $2 billion will be given as rewards to stakers and for transaction subsidies. Moreover, should Tron’s team succeed in its meme strategy, then the total revenue could reach $4 billion.
The craze for meme coins on Tron’s SunPump platform last week could be said to be a major reason why the network needed to increase its energy limits. Many crypto analysts believe that Tron’s meme coin season could experience more activity than what was seen on Solana earlier this year.
Tron’s Native Token TRX Soars Amid Meme Coin Frenzy
The increase in activity on the Tron network has raised the price of its native token TRX. The coin’s price has jumped by over 25% in the past week.
The coin is priced at $0.166 at the time of writing, with more than 3% in the last 24 hours. According to CoinMarketCap, the price spike has pushed TRX past Toncoin to become the ninth-largest cryptocurrency per market cap.
The token burn strategy and the coin’s growing adoption are part of what is driving the price. Amid this price surge, Justin Sun has also expressed optimism that the price of Tron’s meme coin project will further spike in the coming days.
One of the meme coins that has experienced massive gains on the Tron network is SUNDOG, which has experienced over 200% increase over the past week. It has also continued its bullish trend, gaining over 28% in the last 24 hours and currently trading at $0.259 with a market cap of over $258 million according to CoinMarketCap
The increase of meme coin activity on the Tron network and the needed improvement on the network could be a good catalyst for TRX towards new all-time highs, solidify Tron’s position in the crypto market, and perhaps place it among the top five cryptos per market cap.
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