As more people are interested in cryptocurrency, it is becoming increasingly important to understand the various trading and investing options available. Swapping ETH for TRX can help you diversify your portfolio and potentially take advantage of different market opportunities.
Nevertheless, as with any investment decision, you’ve got to carefully consider the advantages and disadvantages before making the swap. In this article, we’ll look at the benefits and drawbacks of converting ETH to TRX to help you make an informed decision.
Why TRON (TRX)?
TRON is a decentralized, open-source blockchain-based operating system with smart contract features, a proof-of-stake consensus process, and its own cryptocurrency Tronix (TRX). It was created with the aim to build a global entertainment system for digital content.
It made it possible for content creators to sell their works directly to consumers, eliminating the need for the middleman. Users directly pay content providers for access to their apps with TRX. Content providers do not pay any transaction fees.
The platform has its own protocol — TRON protocol. It is characterized by high throughput and scalability.
There was a major upgrade to the TRON network in May 2018 with the introduction of its Main Net, an independent blockchain. Before that, TRON ran on the Ethereum blockchain. That improved transaction speeds and scalability. Additionally, the Main Net allowed TRON to operate independently as a blockchain.
TRON gained popularity through its effective marketing strategy. It included strategic partnerships with well-known companies such as BitTorrent and Samsung.
TRX: Price Prediction
The predictions for the TRX price are favorable — the currency won’t drop in its value. DigitalCoinPrice indicates that the value of TRX will rise by 221.46%, hitting $0.23 by the end of 2025. The minimal price will be around $0.19, while the maximum it will reach in 2025 will be approximately $0.23.
Ethereum is a decentralized platform with smart contracts functionality. It creates a peer-to-peer network on the blockchain that allows building dApps and carrying out transactions without a trusted central authority.
After the Merge in September 2022, Ethereum moved from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus mechanism. That improved sustainability, scalability, and security.
Its native cryptocurrency, ether (ETH), is second to Bitcoin in market capitalization. You can use it to pay for work done within the blockchain or paying tangible goods or services. Apart from this, ETH is used to process financial transactions, run smart contracts, and store data within the blockchain ecosystem.
It’s worth noting that Ethereum’s value went through considerable changes in the past years. As it reached an all-time high value of $4,878.26 in November 2021, it then plunged to $2,610.48 in January 2022. There was an insignificant recovery of ETH in May 2022 when its price rose to $3,383.69, only to see a dramatic drop in June 2022 ($1,098.91). Since then, ETH has been showing an upward price trajectory, but no significant changes in its value are yet to be seen.
ETH: Future Price
Experts predict that ETH will recover in the future. By the end of 2023, the average value of this cryptocurrency may grow to $3,860.95 per coin, while its min and max values will hover between $1,617.89 and $3,966.20 respectively. Ether might get closer to its all-time high rate in 2024, being available at around $4,390.96. In 2025, its average value can reach $5,858.86.
If you are interested in investing in other currencies to diversify your portfolio, you may want to compare other options, such as AVAX versus SOL.
If you want to get into the business of entertainment apps or buy content from creators within the TRON network, then you should probably consider swapping ETH for TRX. But as a value currency, it is very unlikely that TRX will ever make it to the level of ether. So, perhaps, it will make sense to keep your ETH coins till they restore their value.