Tron Crypto Proposal 106 Approved, Here’s What You Should Know

Key Insights:

• Tron to boost key security features and enhance Tron virtual machine compatibility with Ethereum.
• Tron TVL grew by over 15% in the last 4 weeks, which could signal the return of liquidity.
• TRX crypto faces resistance after retesting its 6-month resistance.

The Tron crypto network and its mainnet demonstrated resilience on key metrics, even as the crypto market faced a tough time. One of the latest developments related to Tron involves a recent proposal, which might introduce some noteworthy changes.

Tron Crypto Upgrade Targets Malicious Activity with New Contract Rules

The Tron crypto community has reportedly passed Proposal 106, which will facilitate some structural changes. According to the official Tron DAO page, the proposal will enable modifications to the SELFDESTRUCT opcode.

In simpler terms, the proposal will enable changes to the Tron Crypto network’s smart contract operations. For example, Tron DAO noted that “contracts will be deleted if they are executed within the same transaction where they were created.

According to the announcement, the contract code data will remain onchain unless the SELFDESTRUCT optcode deletes the data. This is in accordance with the first point.

These changes will reportedly benefit the Tron crypto network in terms of security. For example, they will block malicious actors from force closing contracts after deployment. A key benefit is that it boosts the line of defense against malicious actors.

The changes will also make audits easier since the data will not be deleted. The third change will be a shift in energy costs from 0 to 5000 units in smart contract computation. A shift that could boost organic demand for TRX crypto.

Tron Crypto Network Sees Noteworthy Spike In TVL

Aside from upcoming technical developments, the network has also been demonstrating significant activity. The lowest total value locked (TVL) that the network has recorded was $3.85 billion on 11 March.

Tron’s TVL clocked $4.96 billion as of 10 April (Friday), which was a $1.1 billion gain from its lowest figure in March. Such growth figures are not quite common during a market downturn.

A substantial amount of that upside was because the TRX price surged considerably during the last 4 weeks. However, a look at the Tron TVL in TRX form rather than in dollar denomination also revealed a surge from 12.84 billion TRX towards the end of March, to 15.48 TRX at press time.

Rising TVL often denotes growing confidence among the network’s users.  It may also signal that investors were making a comeback perhaps in anticipation of market recovery.

TRX Crypto Runs Into Another Resistance Wall

While Tron crypto network’s TVL was making a recovery, the network’s native coin has been steadily climbing since early February.

For context, TRX price exchanged hands at $0.31 at press time, an 18% bounce from its floor in August. Most of that upside occurred in March, during which it rallied by roughly 11%.

The reality of TRX price was that its upward trajectory was that it appears to be facing resistance near its recent highs ($0.31). This resistance suggests that it could potentially be about to enter a profit-taking phase if demand fizzles out.

Large order book data still indicated a bullish bias among whales across multiple exchanges. Binance in particular, contributed over $6 million worth of net inflows into TRX crypto in the last 24 hours at press time.

TRX price has so far demonstrated noteworthy resilience against the downside. Something that most top coins have struggled with due to geopolitical tailwinds. Whether this resilience will carry the cryptocurrency beyond the current resistance level remains to be seen.

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