Best Deflationary Cryptocurrency to Invest in 2025

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.

Reviewing the 10 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 that provides enhanced scalability, security, and speed. It features Layer-2 technology, 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, each supporting growth, sustainability, and community rewards. Its staking system shares token rewards at 608.82 tokens per Ethereum block, for a total of 1,685,264,729 staked tokens.

2. Catslap Token (SLAP) — Among the Deflationary Cryptos With a 4,044% Increase Since Its Launch

Another coin on our crypto coin burn list is Catslap. Players compete by slapping Pepe and gain scores on the Slapometer. The project launched in November, straight on a DEX, with no presale.

Its success was evident immediately after its launch, given that its market cap grew by 16 times in a matter of minutes, while it already trended st number 1 on DexTools in only an hour. Since its launch, the token has witnessed a 4,044% increase. Catslap has been the topic of many influencers recently, who have talked about its development and latest news.

Interested investors can buy $SLAP token for $0.00253556, using a card, ETH, or USDT. The $SLAP tokenomics includes a 10% allocation for community rewards, leading to speculation that the project’s slapping game might be gamified. There are also rumors of a potential $SLAP airdrop linked to users’ Slapometer scores.

3. 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 can stake the following meme coins: Doge, Pepe, Floki Inu, Shiba Inu, Coq Inu, Based Brett, Milady, Mog, Bonk, Toshi, and Turbo. Once the MemeVault is launched, the list will include more meme coins. 

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.

4. 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 low price, users can stake $FLOCK tokens, with a current APY of 1313%. The presale has raised $1.2 million, and 20% of the token supply is allocated to it. 

Flockerz is now in the first of its three-step roadmap. During this step, the main focus is on marketing campaigns, presale launches, and thorough audits. Moreover, the next step is dedicated to influential voices, community expansion, and dominance over the Ethereum blockchain. The third focuses on further community expansion, public trading, and introducing the Vote-to-Earn mechanism.

5. Best Wallet Token – A Deflationary Coin That Could Dominate the Crypto Wallet Market

$BEST is a deflationary coin that could dominate the crypto wallet market for three reasons. First, this token powers the ecosystem of one of the most popular crypto wallets – Best Wallet. BW was the first Web3 wallet that incorporated Fireblocks MPC-CMP technology, which made it one of the most secure software wallets.

Secondly, this ERC-20 token has multiple use cases. It acts as a governance token, reduces transaction fees, and enables BW users to increase their staking rewards and gain access to new projects.

Lastly, this is a community-based project that enables its users to earn free tokens via airdrops and bonuses via Best Wallet’s iGaming partnerships. The $BEST token will be available through private and public sale. The former will launch directly on the BW app, which means that only BW users will be able to buy $BEST tokens. The latter will be available for all wallet providers.

At the time of writing, this token trades at $0.02252500. Download Best Wallet now to buy $BEST tokens at the lowest price.

6. 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. 

7. 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 token is available on several blockchains, making it a multi-chain token.

Early presale participants can vote for one of the two political figures—Kamacop 9000 or Magatron. Each candidate has its own staking pool whose APY depends on the number of votes. What does that mean? The candidate with the 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 four-stage presale 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.

8. 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.

9. 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.

10. 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.

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