Top 5 Deflationary Cryptocurrencies To Buy Before 2023 - Our Picks
XRP - One of the best deflationary altcoins
CRO - An emerging crypto to bet on
SHIB - Best deflationary memecoin to invest in now
CAKE - Experts’ favorite crypto
SOL - A hit crypto to have in your portfolio
A Closer Look at The Top 5 Deflationary Cryptocurrencies To Buy Before 2023
Deflationary cryptocurrencies have a total token supply that decreases over time. This means that, in theory, the value of the cryptocurrency will increase as the supply reduces.
This guide analyzes the top 5 deflationary cryptocurrencies to buy before 2023.
Ripple (XRP)
XRP is one of the top deflationary cryptos to buy before 2023. This project has been operational since 2012, which makes it one of the most established cryptocurrencies in the space. It primarily serves banks and financial institutions through its innovative payment network technology. The coin is priced at less than a dollar, at $0.38 at the time of writing, indicating its potential for growth.
The long-term objective of XRP is to replace the SWIFT network. The crypto appeals to institutions that need to perform cross-border payments, not least because transactions take seconds to complete. Moreover, the Ripple network can currently handle up to 1,500 transactions per second, irrespective of which currencies are used in the transfer.
The network automatically burns tokens associated with transaction fees. The standard transaction fee amounts to 0.00001 XRP, which, although minute, could eventually translate into a sizable number of burned tokens should its network be utilized by the global banking network.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Cronos (CRO)
Cronos is the digital currency that backs the Crypto.com ecosystem. It operates on a proof of authority consensus mechanism, which ensures that transactions are fast, scalable, and cost-effective. Similar to Ripple's XRP token, Cronos serves plenty of use cases, like offering traders of the Crypto.com exchange discounted trading fees.
Token holders can also take advantage of higher APYs when utilizing Crypto.com crypto interest accounts or lower APYs when borrowing funds. However, the overarching reason CRO is deflationary is that Crypto.com regularly engages in token burning.
Many billions of Cronos tokens have been burned to date. CoinMarketCap notes that Cronos originally traded at $0.02 when it hit public exchanges in 2018. However, the token hit an all-time high of just under $0.97 in 2021, representing growth of over 47x. Currently, the token is trading at $0.06, which gives investors a very attractive price point to enter before 2023.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Shiba Inu (SHIB)
Shiba Inu was created in 2020 as a meme coin alternative to Dogecoin. The project very quickly amassed a huge online following via its social channels. This resulted in it becoming the fastest-growing cryptocurrency of all time.
It is now one of the top cryptos by market capitalization and one of the top deflationary cryptos to buy before 2023. Although the rise of Shiba Inu was largely built on speculation and FOMO, the project is looking to move away from its meme coin status. At the forefront of this is the project's development of its very own metaverse world.
When it comes to its deflationary crypto coins policies, Shiba Inu regularly burns tokens from its circulating supply. One such angle the project is taking to fund its burning program is by utilizing 5% of any NFT sales to buy back tokens from the open marketplace. The coin is still priced quite low, well below one dollar, and is prime for a heavy investment considering its future potential.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
PancakeSwap (CAKE)
PancakeSwap is the most popular decentralized exchange for trading tokens that operate on the Binance Smart Chain. In the past 30 days alone, it has been used by over 1 million traders, and more than $3.9 billion worth of crypto assets are locked in staking pools. Like most exchanges in this space, PancakeSwap has its own native token - CAKE.
There are several use cases that CAKE token holders can avail. This includes liquidity to PancakeSwap pools, which enables investors to earn a share of any trading commissions collected by the exchange. In addition, CAKE holders also have access to higher-yield farming APYs.
The objective outlined by PancakeSwap is to ensure that more tokens are being burned when compared to those entering circulation. This is an automated process based on many smart contract agreements. For instance, 10% of CAKE tokens utilized to buy lottery tickets on PancakeSwap are subsequently burned. These factors make CAKE one of the top deflationary cryptos to buy before 2023.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Solana (SOL)
There are tokens that can possess both inflationary and deflationary characteristics, like the SOL token. It is considered an inflationary token since the token has an infinite supply. However, it also employs a deflationary mechanism by charging transaction fees paid in SOL tokens to maintain its value.
Additionally, the ecosystem regularly burns the SOL coins to sustain the value of its governance token. There are several ways a crypto coin can qualify as a deflationary token, and burning the tokens is one of the proven ways since it regularly reduces the supply and subsequently drives up the demand and value of the crypto.
These factors make SOL one of the top deflationary cryptos to buy before 2023.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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