Deflationary Crypto - Supply v Value : Analysis

By jonlloydjones | jonlloydjones | 4 Aug 2019

In my last article I talked briefly about deflationary cryptocurrencies and Dynamite Token. The following is an unbiased analysis of the current deflationary cryprocurrenices available. I explore whether or not low supply and high burn rate equates to higher demand and, ultimately, a higher price. After all, that’s what most of us are interesting it — right?!


Deflationary Cryptocurrencies Comparison Table

The following is a comparison of all deflationary cryptocurrencies currently available.



It’s not exactly easy to see what’s going on in this table at first glance, so let’s take a look at it in a bit more detail.

Burn Rate


Firstly, let’s take a look at the burn rate. I have exluded HYPE token from this example as the burn rate is variable and, therefore, might skew the analysis.


So, we can clearly see that HOLE has the highest burn rate of 20%, followed by FIRE with 10%, and Anar, Fuze and Void all having a 5% burn rate.

The burn rate on its own doesn’t mean anything, however, as we also need to look at supply.



Below we can see which cryptocurrencies have the lowest supply. There is quite a jump, particulary between REKT and BOMB, so it will be interesting to see how this difference impacts the price, it at all.


This is where things get interesting.


Fuze and Anar appear in all of these graphs so there is some evidence to suggest that a low supply and high burn rate can lead to higher demand and a higher value, however there is obviously more at play here and there could be other attributes impacting the price.



What have we learnt from the above analysis? Well, there are clearly some links between low supply, a high burn rate, and the price of deflationary cryptocurrency, but we need to dive deeper to understand other factors that could impact the price.

In my next article I will explore these additional factors such as time, community impact, and exchanges.




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Geek. Enjoy technology, video games, golf and rugby. Crypto enthusiast.


I'm a crypto-enthusiast and right now my interest is in deflationary cryptocurrenices. Full disclosure: I am also part of Dynamite Token team.

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