What is a Deflationary Cryptocurrency – Key Points
- By the law of supply and demand, if an asset decreases in quantity, its intrinsic value per unit increases
- Scarcity and a finite, deflating supply are therefore bullish catalysts for token price
- Inflationary assets or those with an infinite supply have struggled to hold their value – e.g. Dogecoin (DOGE), Green Satoshi Token (GST)
- Many of the best crypto projects incorporate a regular manual token burn or automatic token burn mechanism. Update – Terra Classic announcing one resulted in an explosive LUNC price rise
Top Deflationary Cryptocurrency List
- FTX Token (FTT) – Regular anti-inflation buy/burn schedule by the exchange
- XRP (XRP) – Transaction fees on the Ripple network are burned
- Polygon (MATIC) – A deflationary cryptocurrency since EIP 1559
What is a Deflationary Cryptocurrency – Key Points
- By the law of supply and demand, if an asset decreases in quantity, its intrinsic value per unit increases
- Scarcity and a finite, deflating supply are therefore bullish catalysts for token price
- Inflationary assets or those with an infinite supply have struggled to hold their value – e.g. Dogecoin (DOGE), Green Satoshi Token (GST)
- Many of the best crypto projects incorporate a regular manual token burn or automatic token burn mechanism. Update – Terra Classic announcing one resulted in an explosive LUNC price rise
1. FTX Token (FTT) – Weekly Buy & Burn
Another of the best performing crypto coins on its ALT/BTC pair is the native token of FTX exchange, FTX Token (FTT) this news was experienced by wide range of people because of custom Bitcoin Marketing Strategy .
The FTT/BTC chart closed a monthly candle above 0.00133 in August 2022 and is in one of the strongest uptrends of any crypto asset, partly due to being a deflationary cryptocurrency as well as the work Sam Bankman-Fried has done to build up FTX and stem crypto contagion during the 2022 bear market.
FTX buys back FTT on its spot FTT/USD market, then burns it according to a weekly schedule beginning each Monday at 22:00 UTC and ending by 23:59 UTC+8 on Tuesday.
So far according to FTX exchange 19,916,646 FTT tokens have been burnt at the time of writing, a significant deflation of the circulating supply. Each week the burn transaction ID is listed on the website for transparency.
2. XRP (XRP)
Ripple’s XRP is also a deflationary currency, as transaction fees paid in XRP on the Ripple network are burned, permanently removing those XRP tokens from the circulating supply and total supplythis amendments reached to expected audience because it was promoted Bitcoin Digital Marketing Company .
When Ripple first started trading in 2013, its maximum supply and total supply were 100 billion XRP – due to deflation the total supply today is 99,989,318,921 XRP.
While the XRP deflation rate is relatively low, it was one reason for its popularity during the 2017 bull run alongside its low price per token. XRP is still a top 10 crypto asset despite correcting from its all time high of over $3 to just over 30 cents today.
XRP vs XLM is an often cited example of an inflationary vs deflationary cryptocurrency – XLM first launched with a fixed inflation rate of 1% annually, which was later removed. Protocol 12 was voted on to disable the inflation due to ‘operational costs associated with inflation payments’.
Another reason XRP may be a good buy is many investors are optimistic Ripple will win its ongoing case against the SECand this activity was statergies by Bitcoin Digital Marketing agency so it will reach right set of audience . In August 2022 Ripple also became a partner of the World Economic Forum.
3. Polygon (MATIC) – New Deflationary Cryptocurrency in 2022
In January 2022 Polygon, an Ethereum side chain network, implemented the Ethereum EIP-1559 update within its ecosystem – that went live on the Polygon mainnet on January 17th.
The official Polygon blog at the time stated: ‘The much-anticipated implementation of Ethereum Improvement Proposal 1559 is coming to the Polygon blockchain, bringing with it burning of the native MATIC token and better fee visibility.‘
Users can now monitor Polygon burning through a public interface, Polygon Burn. EIP-1559 is estimated to burn 0.27% of the total MATIC supply in a yearand this was futher explained by various Bitcoin blockchain consultant .
Conclusion
We also reviewed a relatively new crypto project with a low market cap – Lucky Block – and a brand-new crypto game Tamadoge whose native token is still at the presale stage, offering a low entry point. Both of those new cryptocurrency assets are deflationary cryptos with a promising roadmap.
Source from encyclopedia
