Frag is getting burned at an alarming rate. According to the latest Frags statistics, the total amount of burnt tokens reached over 950k just recently (out of 10 million initial supply).
The FragToken project is probably the only remaining deflationary project in TRX right now. The key to the success of FragToken is the development of an underlying ecosystem of Dapps and partnerships (including one with Tewkenaire).
Frag will probably partner with more Dapps in the future and its value will be a reflection of the value of the TRX ecosystem as a whole.