Tron Network's price potentially affected as Justin Sun reduces transaction fees by a significant 60%

The Tron Network has announced a significant reduction in its transaction fees, effective from August 29, 2025. This reduction, amounting to a 60% decrease, is expected to lower transaction costs considerably, making Tron (TRX) more appealing to users and potentially increasing transaction volume and network activity.

The fee cut, which reduces the energy unit price from 210 sun to 100 sun, marks the largest cost reduction in the network's history. This move could positively impact TRX market demand and price, but market volatility and broader crypto market factors will continue to influence TRX price movements.

At present, the TRX price is consolidating within the $0.33 support and the $0.35 level, where the 8-day and 13-day moving averages intersect. A death cross has formed on the TRXUSDT 24-hour chart, with the 5-day simple moving average dropping below both the 8-day and 13-day averages, indicating a bearish trend.

The price is likely to remain at risk of persistent downswings until the bulls stage a decisive breakout above the $0.36 price level. CoinGlass' liquidation map data emphasizes short-term bearish expectations among TRX holders, with $19 million of short positions deployed at the $0.36 price level.

On the other hand, bullish traders have trimmed down exposure to $15.9 million in active long TRX positions. The Tron Network currently has a total USDT supply of $82 billion, and the fee cut is expected to boost its dominance in stablecoin transactions. $24 billion in USDT transactions executed on Tron account for 20% of USDT's total 24-hour trading volume of $136 billion.

Justin Sun, Tron Network Founder, supports Tron Improvement Proposal #789, which brings about this fee reduction. However, the fee cut reduces income accruing to token holders, potentially leading to considerable unstaking and a massive short-term supply surge.

Meanwhile, some traders are rotating toward high-risk speculative tokens like Maxi Doge (MAXIDOGE), with the Maxi Doge presale having raised $1.6 million of a $1.9 million goal. The Relative Strength Index (RSI) has retreated from overbought territory towards 58.95%, signaling declining buying pressure.

As of press time, the Tron price has dipped 4% intraday to $0.33, while trading activity has seen a 29.5% increase, with trading volume approaching $1.2 billion, according to CoinMarketCap data. This news underscores the ongoing dynamics within the crypto market, where price movements are influenced by a complex interplay of various factors.

Tron Network's price potentially affected as Justin Sun reduces transaction fees by a significant 60%