Before investing in some of the best deflationary cryptocurrency, you should familiarize yourself with all the pros and cons, including token burning, redistribution, and liquidity.
Find out how to choose deflationary cryptocurrencies and get some investing tips in this article, where we compile an updated deflationary cryptocurrency list.
Top Deflationary Crypto Coins List
- Pepe Unchained (PEPU) – Top burning cryptocurrency featuring Layer-2 technology
- Crypto All-Stars (STARS) – A deflationary coin that offers a revolutionary staking protocol
- Flockerz (FLOCK) – Coin burn crypto with a vote-to-earn mechanism
- FreeDum Fighters (DUM) – Most deflationary crypto, available on several blockchains
- Sponge V2 (SPONGEV2) – Crypto that burns coins, aspiring to replicate its predecessor’s success
- Shiba Shootout (SHIBASHOOT) – A Wild West-themed token with a crypto coin burn schedule
- Bitcoin (BTC) – Another coin on the hyper-deflationary tokens list, representing the biggest cryptocurrency globally
- BNB (BNB) – The native crypto of Binance, enabling the burning of cryptocurrency
- XRP (XRP) – Among the cryptocurrency-burning coins that can process up to 1,500 TPS
Reviewing the 9 Best Deflationary Crypto Coins
Below, we take a closer look at our list of the best deflationary cryptocurrencies and how they work:
1. Pepe Unchained (PEPU) – Top Burning Cryptocurrency Featuring Layer-2 Technology
Pepe Unchained is an upgrade to Pepe, providing enhanced scalability, security, and speed. It features Layer-2 technology, which is a framework built on top of the Layer-1 blockchain. The innovative technology addresses the typical problems associated with Layer-1 blockchains, including high transaction fees and slow processing speeds.
There’s a total token supply of 8B, 20% of which is reserved for the presale. Buying $PEPU tokens allows early investors to buy tokens now and claim them after the presale ends. Purchase methods include ETH, USDT, BNB, and card. The current $PEPU price is $0.01229, and the presale has already raised over $24.9M.
Pepe Unchained has a roadmap comprising three steps, with each step supporting growth, sustainability, and community rewards. Its staking system shares token rewards at 608.82 tokens per Ethereum block. The total number of staked tokens is 1,685,264,729.
2. Crypto All Stars (STARS) – A Deflationary Coin That Offers a Revolutionary Staking Protocol
Crypto All-Stars is a project aspiring to unite the most popular meme coins. It offers the MemeVault, a revolutionary staking protocol. Currently, traders are able to stake the following meme coins: Doge, Pepe, Floki Inu, Shiba Inu, Coq Inu, Based Brett, Milady, Mog, Bonk, Toshi, and Turbo. The list will include more meme coins once the MemeVault is launched.
The presale will take place in several stages and has raised over $3M so far. Investors can buy 20% of the total token supply during the presale. The current $STARS price is $0.0015494, with price predictions anticipating the price to reach $0.04416 by 2025.
Moreover, stakers will be able to take advantage of the project’s large APY, which currently stands at 505%. Its roadmap consists of three stages; the first one focuses on the presale, the second one is dedicated to the $STARS token launch, and the third one to unlocking the Vault.
3. Flockerz (FLOCK) – Coin Burn Crypto With a Vote-To-Earn Mechanism
Flockerz is a community-centered project and one of the best DAO crypto projects trying to revolutionize decentralization. It puts its users in the driver’s seat, giving them all the power. But what does that mean? It means that it’s the community that makes all major Flockerz-related decisions through the Vote-to-Earn mechanism. What’s more, the community gets rewarded while doing so.
In addition to buying tokens at a currently low price, users can also stake $FLOCK tokens, with a current APY of 1313%. The presale has managed to raise $1.2 million, and 20% of the token supply is allocated to the presale.
Flockerz is now in the first of its three-step roadmap. During this step, the main focus is the marketing campaigns, presale launch, and thorough audits. Moreover, the next step is dedicated to influential voices, community expansion, and dominance over the Ethereum blockchain, and the third focuses on further community expansion, public trading, and introducing the Vote-to-Earn mechanism.
4. FreeDum Fighters (DUM) – Most Deflationary Crypto, Available on Several Blockchains
FreeDum Fighters is a new politiFi token trying to capitalize on the current US presidential race through a lucrative voting mechanism, gamified and satirical approach, and multi-stage presale plan. This is a multi-chain token, as it’s available on several blockchains.
Early presale participants can vote for one of the two political figures – Kamacop 9000 or Magatron, with each candidate having its own staking pool whose APY depends on the number of votes. What does that mean? It means that th candidate with a higher number of votes will offer a lower APY, and the other way around. Token holders can win secret airdrops by participating in weekly debates and polls.
The presale, taking place in four stages, offers a starting price of $0.00005 and a 150% higher final price. Currently, one $DUM is worth $0.00007. The total token supply is 270B, with 40% allocated to the presale.
5. Sponge V2 (SPONGEV2) – Crypto That Burns Coins, Aspiring to Replicate Its Predecessor’s Success
Sponge V2 was developed as a substitution for the Sponge V1 token, aspiring to replicate its predecessor’s success. Let’s not forget that V1 witnesses experienced a 100x jump in value once it went live.
One part of the plan to be as successful is to launch a V2 token-powered P2E game – Sponge Racer. Then, all investors who stake their tokens will receive staking rewards, distributed at a rate of 300 tokens per POLY block and an APY of 22%. So far, over 19.3 billion tokens have been staked.
The project uses a stake-to-bridge model, meaning V2 tokens can only be earned by staking V1 tokens. Once all V1 tokens are staked, V2 tokens will substitute them. The latter will be used for voting, conducting transactions, and accessing dApps.
The 150 billion token supply is well distributed between the bridged $SPONGE, staking rewards, marketing, P2E rewards, CEX liquidity, and game development.
6. Shiba Shootout (SHIBASHOOT) – A Wild West-Themed Token With a Crypto Coin Burn Schedule
Shiba Shootout is a project with a unique, Wild West-themed design. Its main goal is to create a strong community that celebrates creativity and collaboration. Its presale started in April 2024 and managed to raise $4,000 within a day. The upward trend continues, as the project has raised more than $1.2M so far.
Shiba Shootout offers numerous exciting features, one of which is the Token Governance Roundups, allowing users to vote on changes regarding the project. That makes $SHIBASHOOT a governance token.
Other impressive features include Posse Rewards, Cactus Staking, and Campfire Stories. The first offers referral programs, the second is a staking system, and the third is a group where investors can share their crypto experiences. People who stake their tokens during the presale earn 125.5 tokens per Ethereum block. Currently, staking rewards have an APY of 742%.
7. Bitcoin (BTC) – Another Coin on the Hyper-Deflationary Tokens List, Representing the Biggest Cryptocurrency Globally
Bitcoin is the first and biggest cryptocurrency in the world. Its market cap is $1.46T, and its current price is also an all-time high of $73,800, making this one of the most profitable cryptocurrencies. Bitcoin has many utilities, the most common being NFT ordinals on its network, privacy-focused transactions, cross-border transactions, streaming payments, and financial inclusion.
Bitcoin uses P2P technology without the need for banks or other central authorities. It is open-source, which means its design is public. Due to BTC’s unique properties, there are exciting use cases previously impossible with other payment systems.
During BTC halving events, the reward is cut by 50%. The last such event occurred in April 2024, cutting the reward to 3.125 BTC. The recent Bitcoin ETFs, combined with existing supply-demand imbalances, will enhance its growth prospects.
8. BNB (BNB) – The Native Crypto of Binance, Enabling the Burning of Cryptocurrency
Previously known as Binance Coin, BNB is the native crypto of Binance, the largest crypto exchange globally. It launched in 2017 and has quickly become one of the best-performing cryptocurrencies ever.
In addition to allowing traders on Binance to lower commissions by 25%, BNB has many other use cases, like enabling users to earn interest through staking. Also, BNB is the native currency of the Binance Smart Chain, settling all transactions on the network.
The overall supply of BNB consists of 200 million tokens. However, it functions as a deflationary cryptocurrency since Binance consistently burns tokens that are in circulation. Binance has completed its 29th token burn, and since the launch of BEP95, approximately 242,000 BNBs have been burned through this process.
BNB’s all-time high was reached in June 2024, when the token traded for $717. Its current price is almost 19% lower, standing at $581.
9. XRP (XRP) – Among the Cryptocurrency-Burning Coins That Can Process up to 1,500 TPS
XRP is one of the most established cryptocurrencies, and it has been operating since 2012. Its innovative payment network technology allows it to serve banks and financial institutions. Its long-term goal is to replace the SWIFT network.
XRP is attractive to institutions looking to execute cross-border payments, particularly because transactions are completed in just seconds. Additionally, XRP can process up to 1,500 transactions per second, regardless of the currencies involved in the transfer.
XRP automatically burns tokens that are related to transaction fees. The typical transaction fee is 0.00001 XRP. While small, this amount could lead to a significant number of tokens being burned if the global banking network adopts its use.
The current price of XRP is $0.5293, and its market cap is $30.19B. The total token supply is 99.99B, while its circulating supply is 56.87B.
What is a Deflationary Cryptocurrency?
We know that decrease in supply results in an increase in value over time. So, what is a deflationary token? Cryptocurrencies with a deflationary model gradually reduce their circulating supply, leading to scarcity and higher value. A deflationary model also ensures that the digital finance industry will maintain balance with crypto assets over time. On the other hand, inflationary crypto assets increase their circulating supply over time through a minting or mining mechanism.
How Do Crypto Deflationary Models Work?
In a deflationary cryptocurrency model, the cryptocurrency’s overall supply decreases gradually through mechanisms like token burning or buybacks. This strategy aims to create scarcity, which can increase each token’s value, provided that the demand either remains stable or increases. Overall, it’s a way to boost the value of a cryptocurrency (deflation crypto) by reducing its supply over time.
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 or automatic token burn mechanism.
Conclusion
This guide has reviewed 8 of the top deflationary cryptocurrency tokens. Investing in some of the best deflationary cryptocurrencies can be smart as they retain their value due to the limited supply.
In contrast, investing in a cryptocurrency with no limit means there is no scarcity to drive demand, and the value is unlikely to increase.
It’s important to note that both inflationary and deflationary cryptocurrencies carry unique risks and challenges.