Cryptos with a token burn that deflates the circulating supply like BNB, Tamadoge and now Terra Classic (LUNC) can hold their value better over time.

In this guide, we put together a deflationary cryptocurrency list updated for the recent Q3 2022 news that Terra Classic will now have a 1.2% token burn to reduce its total supply – that news resulted in an over 70% pump for the LUNC price in a day in September, and over 100% in a week.

Top Deflationary Cryptocurrency List

• IMPT – Burn Digital Assets to Reduce your Carbon Footprint

• Tamadoge (TAMA) – Newest meme coin with 5% token burn

• Lucky Block V1 (LBLOCK) – 1% of transaction taxes burnt to lower supply

• Terra Classic (LUNC) – New 1.2% token burn announced in 2022

• Binance Coin (BNB) – Quarterly buyback and burn, auto-burn mechanism

• 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

Visit IMPT Now

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

Buy Terra Classic on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Reviewing the Best Deflationary Crypto Coins

Below we take a closer look at our list of the best deflationary cryptocurrencies and how they work:

1. IMPT – Burn Digital Assets to Reduce your Carbon Footprint

Combining deflationary tokenomics with environmentally sustainable practices – IMPT is one of the top cryptocurrency platforms to watch right now. Built on the Ethereum chain, IMPT is a Carbon Offset programme that aims to reduce an individual’s carbon footprint.

Interested in knowing how to purchase carbon credits? IMPT offers a shopping marketplace where buyers can purchase from one of hundreds of retailers that have partnered with this cryptocurrency in order to become more environmentally conscious. After making a purchase, buyers receive a percentage of the sales margin as IMPT tokens. After accumulating enough tokens, holders can leverage their cryptos to purchase Carbon Credits – which are tokenized Carbon NFTs representing 1 ton of CO2 emissions.

The NFTs can be bought on IMPT’s marketplace and are recorded on a decentralized ledger to guarantee transparency and provide traceability. Holders have two options – either to trade the token like an investment or burn the Carbon Credit and nullify its existence on the blockchain. Burning the token reduces the individual’s tokenized carbon emissions from the atmosphere. As a reward, each investor that burns a Carbon Credit is gifted an NFT minted on the platform itself.

Along with the market burn tokenomics, IMPT also has a limited supply of 3 billion tokens. Therefore, investors may experience higher demand as supply reduces in the future. The success of this project is already being witnessed during the ongoing cryptocurrency presale – which is offering 20% of the available supply. 180 million tokens of the available 600 million tokens have been sold, raising over $3.2 million.

Interested readers can purchase IMPT for only $0.018 right now. Get your hands on IMPT before the price increases to $0.023 in time for the start of the second presale round towards the end of 2022. Join the IMPT Telegram channel to get the latest updates and new stories surrounding this trending digital asset.

Buy IMPT tokens

2. Tamadoge (TAMA) – 5% Token Burn

Tamadoge is an virtual pets game in which players mint Doge pets as NFTs, each with different attributes, strengths and weaknesses – then nurture, feed and train them ‘Tamagotchi’ style from puppy to adult.

When players purchase food and accessories using the in-game currency TAMA in the Tamadoge store, 5% of the transaction cost is permanently burnt to reduce the total supply of TAMA tokens from 2 billion coins.

Via Tamadoge whitepaper

Tamadoge is also on presale now at buy.tamadoge.io so we rank it high on our best deflationary cryptocurrency list due to its low price point and market cap – presales and pre-ICO crypto projects usually offer the lowest entry point possible.

The first recorded Dogecoin price for example shortly after its ICO and being launched on exchanges was $0.00055, and today DOGE is priced at $0.06 with an $8 billion market capitalization.

Dogecoin achieved that despite being inflationary – Dogecoin technically has an infinite supply and small inflation rate. Over the course of its price history since 2013, the total supply of Dogecoin has risen from 100 billion at launch to over 132.6 billion today.

Tamadoge aims to offer more utility than DOGE as the rewards token of the P2E Tamadoge battle app and mini-games, and be able to resist sharp price corrections – DOGE has retraced 92% since its ATH of $0.74 hit in May 2021. See our guide on how to buy Tamadoge.

Buy TAMA Now

3. Lucky Block V1 (LBLOCK) – 1% Burn on Sales Tax

The Lucky Block NFT competitions platform has two native tokens, its most recent upgrade is an Ethereum chain token used to facilitate for crypto exchange listings and more suited to day trading as it is tax-free (V2).

Its original Binance Smart Chain token LBLOCK V1 is used to play its jackpot games, and for holders to earn rewards – it is also deflationary as part of its 12% transaction tax – 1% – is burnt to reduce the circulating supply.

Learn more about the Lucky Block project in its official Discord where both tokens are explained in detail.

As well as being a deflationary crypto LBLOCK V1 is now likely an undervalued cryptocurrency – having corrected back to around a 2x from its presale price, after a 65x bull cycle earlier in 2022.

LBLOCK V1 (and V2) have several upcoming bullish catalysts – firstly the ERC-20 V2 token is now listed on Gate.io, one of the highest trading volume crypto exchanges (ranked in the top 10 by CoinMarketCap), giving it more room for growth that also benefits the V1 token.

Secondly the Lucky Block team are implementing an Ethereum bridge audited by CertiK to allow V1 and V2 tokens to be exchanged seamlessly. See our LBLOCK V2 price prediction post for more details on the ETH bridge.

Buy LBLOCK Now

4. Terra Classic (LUNC) – Now a Deflationary Crypto

The original Terra (LUNA) token – before its crash alongside the collapse of UST – has now been renamed Terra Classic (LUNC) and still available to buy on safe regulated exchange such as eToro.

LUNC coin may now be a safer crypto to invest in as it has announced a token burn to reduce its circulating supply – part of the reason it crashed was the hyper inflation of its total supply from around 350 million to 6.5 trillion – causing the price per token to decline over 99.99% in May 2022.

The new LUNA and old LUNA – rebranded as LUNC – also didn’t perform well at first immediately after the hard fork, since late May. However as of September the bullish LUNC news investors were waiting for finally materialized – when a token burn was voted on.

That will enable LUNC to become a deflationary cryptocurrency as of September 12th – with a 1.2% token burn reportedly set to be applied to all transactions on the network. Twitter Account ‘LUNC burn’ (@LunaBurn_13) also reported 3.08 billion LUNC tokens have already been burned prior to that date.

The Terra Classic price pumped over 70% in a day on September 1st, 2022. See our guide on how to buy LUNC.

Buy LUNC Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

5. Binance Coin (BNB) – Big Cap Deflationary Cryptocurrency

Binance Coin (BNB) is the native token of the largest crypto exchange in the industry by trading volume, Binance – which supports over 600 cryptocurrency tokens.

BNB itself has been one of the best performing cryptocurrency assets of all time, rising to the 5th highest market cap asset only behind Bitcoin, Ethereum, Tether (USDT) and USD Coin (USDC).

The Binance network regularly carries out a buyback and burn each quarter, whereby the Binance team decreases the amount of BNB tokens in circulation. Its 20th quarterly burn for example was completed in July during which 1,959,595.29 BNB were burned.

When it launched in 2017 the Binance Coin total supply was 200 million – as of September 2022 that is now just 161 million, an almost 20% reduction. In December 2021 an auto-burn protocol was implemented to make the deflation rate even more transparent for traders.

As well as Binance, BNB is today listed on most crypto exchanges including eToro.

Buy BNB Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

6. 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).

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.

Buy FTT Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

7. 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 supply.

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 SEC. In August 2022 Ripple also became a partner of the World Economic Forum.

Buy XRP Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

8. 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 year.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Conclusion

Two of the defacto best cryptos to buy over the past 3-5 years have been deflationary cryptocurrency tokens – BNB and FTX. Partly their success was also due to being native tokens of major crypto exchanges, but their deflationary tokenomics also played a role.

Investor interest in LUNC coin now that its deflationary token burn has been announced demonstrates the utility buyers see in the total supply of their chosen asset decreasing over time, making it more scarce and valuable.

We also reviewed a relatively new crypto project with a low market cap – IMPT – a cryptocurrency that aims to offset an individual’s carbon footprint from the environment. IMPT is available to buy during its ongoing presale for just $0.018 per token.

#cryptocurrency #cryptocurrencynews #cryptocurrencytrading #cryptocurrencyexchange #cryptocurrencymining #cryptocurrencymarket #cryptocurrencycommunity #cryptocurrencys #cryptocurrencyinvestments #cryptocurrencyinviestments #cryptocurrencyeducation #cryptocurrencyrevolution #allsortofcryptocurrency #cryptocurrencytop10 #cryptocurrency_news #instacryptocurrency #cryptocurrencymemes #investincryptocurrency #cryptocurrencyinvestment #cryptocurrencyisthefuture #cryptocurrencyinvesting #newcryptocurrency #cryptocurrencylife #cryptocurrencytrade #cryptocurrencylifeinvest #cryptocurrencymillionaire #cryptocurrencytrader #cryptocurrency_updates #tradingcryptocurrency #cryptocurrencysignals #cryptocurrencytradingplatform #cryptocurrencysolution #cryptocurrencytraders #cryptocurrency_for_dummies #cryptocurrencymalaysia #cryptocurrencytakingover #cryptocurrencybali #cryptocurrencyinvestors #cryptocurrencyindex #cryptocurrencyattorne