TRON price has dropped up to five percent (5%) right after the founder Justin Sun announced that the network is adopting a proof-of-stake (PoS) system, while it is also speculated that it is the result of a widespread downturn of the crypto market.
Besides the downturn of the crypto market, the reason for such poor performance could also be the new plan adopting the staking mechanism that has been outlined by the founder of TRON, Justin Sun.
This new mechanism is aimed to provide a “fair, decentralized distribution of staking revenues”. Moreover, it will be encouraging the user for their participation.
Is PoS announcement affecting TRON price?
In a bid to support the decentralized TRX and encourage the users to increase their participation, this new mechanism would lead to smaller rewards for the large network contributors.
Since it is yet not settled that this drop in TRON price is greater than those of the other leading cryptocurrencies is due to this proposal, it can be coinciding with the large holders lowering their exposure.
At the time of writing, as per the CryptoCompare data, against the U.S dollar, TRON’s cryptocurrency is down by almost five percent (4.9%) trading at $0.0160, after dropping around $0.0175.
After witnessing an exciting beginning this year, the digital currency then entered the phase of the downtrend that experienced a loss of its value up to twenty-four percent in the last six months.
TRON’s TRX witnessed its value to go down at about a little over two and a half percent (2.8%) after recovering from a fall that experienced a hit of about $0.014 in the last thirty days. Interestingly, other digital currencies fell between half to one percent (0.5% – 1%) in intraday trading.