Jan 20, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Cooling CPI Relieves Market

Recent data indicated a stagnation or potential reversal in inflation progress, with a key measure of underlying price hikes — the core Consumer Price Index (CPI) — remaining unchanged for months. However, this trend shifted on Wednesday, as the Bureau of Labor Statistics reported a slowdown in the core CPI for the first time in months.

The CPI, which tracks price changes for commonly purchased goods and services, showed an overall increase of 0.4% from November 2024, lifting the annual rate to 2.9%. This rise was primarily driven by surging gas and food prices, with energy costs alone contributing to 40% of the monthly increase. Food prices also remained high, impacted by weather conditions and disease affecting key staples like meat and eggs.

Excluding volatility for food and energy prices, the core CPI only rose 0.2% from November, easing to 3.2% after being stuck at 3.3% since September 2024. Market reactions were positive, as traders hoped the Federal Reserve would continue its rate-cutting campaign.

While inflation has slowed since peaking at 9.1% in June 2022, the journey back to normalcy has been bumpy. Everyday item prices are now 21% higher than in 2021, straining household budgets, particularly for lower-income Americans. Though wages have risen faster than inflation over the past 20 months, they still lag behind pre-pandemic levels.

This latest CPI report, the last before President Biden transitions power to president-elect Trump, underscores the ongoing challenges in managing inflation, particularly for essential goods and services.

Weekly Crypto Highlight — Crypto Cases Drop Before Trump’s Inauguration

Digital Currency Group and its subsidiary, Genesis Global Capital, reached a settlement with the Securities and Exchange Commission (SEC) on Friday, indicative of a broader trend among cryptocurrency firms resolving regulatory issues as the Biden administration approaches its conclusion. Over the past week, multiple U.S. regulatory agencies — including the Commodity Futures Trading Commission (CFTC), the Justice Department and the SEC — have announced various settlements and charges across at least six cases involving digital assets, signaling a renewed focus on enforcement as the administration winds down.

During Biden's term, more than 100 enforcement actions were filed against crypto companies, reflecting heightened scrutiny of the industry. However, with president-elect Donald Trump set to take office, there’s an expectation of a paradigm shift in regulatory approaches. Trump, once a critic of cryptocurrencies, has appointed crypto-friendly officials to key positions and intends to prioritize legislation that supports the industry.

For many crypto firms, settling with regulators is seen as a strategic move. Legal experts note that such settlements allow these companies to close contentious chapters and redirect their efforts in a potentially more favorable regulatory environment. Jonathan Groth, a partner at DGIM Law, commented on the implications of the incoming administration, suggesting that support for extensive enforcement actions may diminish.

Recent high-profile cases include a $5 million fine against Gemini for regulatory violations and a $100 million penalty for BitMEX due to failures in 

 measures. Additional actions have targeted fraudulent schemes, and individuals involved in illegal cryptocurrency activities. As the regulatory landscape shifts, firms settling with agencies may be positioning themselves for a fresh start under a more accommodating regime.

Advanced

20 Jan Weekly Newsletter.png

Weekly Institutional Insights: Cooling CPI Relieves Market; Bitcoin Regains $100K Ahead of Trump’s Inauguration

Dive into HeyAnon, an innovative protocol launched by experienced DeFi builder Daniele Sesta, and merging DeFi interactions with AI agents.

 (DeFi) protocol designed to simplify DeFi interactions. By integrating conversational artificial intelligence (AI) with real-time data aggregation, HeyAnon empowers users to manage DeFi operations seamlessly. From 

 to tracking project updates and analyzing trends, HeyAnon combines natural language processing and actionable insights to redefine the DeFi user experience.

This article explores the emergence of DeFAI (DeFi + AI), HeyAnon’s groundbreaking features and its role in shaping the future of DeFi.

DeFAI is the birth child of DeFi and AI. It represents a groundbreaking evolution in blockchain technology, whereby AI agents are integrated into DeFi. This emerging sector goes beyond traditional AI applications, focusing on automating on-chain activities through autonomous trading agents, abstraction layers and AI-driven DApps.

The term gained traction during the rise of the AI agent meta, beginning with projects like 

 (GOAT), an innovation born from Andy Ayrey’s Truth Terminal experiment. 

This movement has spurred the creation of numerous AI agents and frameworks, eventually pushing the AI agent market to a peak 

 (as of Jan 15, 2025). Despite its overlap with AI agent concepts, DeFAI has carved out a distinct niche valued at $1 billion, emphasizing deeper blockchain integration. 

Unlike early AI agents, which primarily operated as bots posting on social media with limited on-chain utility, DeFAI agents can participate in blockchain activities. This shift indicates the prioritization of tangible applications, such as automated trading, staking and 

 is an AI agent network built to simplify DeFi interactions while providing users with unparalleled access to real-time information. By combining conversational AI with robust data aggregation capabilities, HeyAnon creates a seamless interface for managing DeFi operations.

Designed with user experience in mind, HeyAnon leverages natural language processing (NLP) to allow users to execute complex DeFi tasks through simple conversations. From automating bridging, swapping, staking and borrowing to monitoring market trends, HeyAnon streamlines operations that typically require advanced technical knowledge.

HeyAnon’s strength lies in its ability to aggregate data from diverse sources, such as X (Twitter), Telegram, Discord, GitHub and GitBook. It provides insights into project updates, community sentiment, development activity and price fluctuations, enabling users to make informed decisions with ease.

Essentially, HeyAnon aims to bridge the gap between technical complexity and user accessibility, improving the way we experience DeFi.

, a renowned figure in DeFi and the crypto market. Sesta is widely recognized for his past projects, including Wonderland (TIME), a decentralized reserve currency protocol that made waves during the DeFi 2.0 era.

HeyAnon empowers users to streamline their DeFi experience with the following features, while remaining informed, efficient and in control.

By leveraging advanced natural language processing (NLP), HeyAnon enables conversational interactions for managing DeFi operations. Users can perform tasks such as staking, swapping tokens or borrowing simply by engaging in a natural conversation with the platform. This intuitive interface eliminates the steep learning curve often associated with DeFi, making it accessible to both newcomers and seasoned users.

HeyAnon excels at consolidating real-time data from diverse sources, including X (Twitter), Telegram, Discord, GitHub and GitBook. By aggregating project updates, community sentiment, development activity and market data, HeyAnon provides users with actionable insights at a glance. For instance, it can monitor GitHub commits or X (Twitter) sentiment to keep users informed about a project’s health and progress.

Automation lies at the core of HeyAnon’s utility, simplifying the following complex DeFi tasks.

, in which several innovative projects are also making their mark. Following is an overview of some key players.

 is a prominent competitor that focuses on leveraging AI to simplify on-chain interactions.

 specializes in providing crypto market intelligence and automating the process of tracking market trends and interpreting data. 

 is an AI agent that aims to transform the way users interact with DeFi. It’s developed by 

, a company that builds infrastructure merging AI and blockchain capabilities. Orbit is available on over 100 blockchains, including Bitcoin, Ethereum and Solana, and across thousands of DeFi protocols.

The ANON token is central to HeyAnon’s ecosystem, serving governance, community benefits and treasury purposes. As the governance token for the Anon DAO, ANON grants holders voting rights to shape HeyAnon’s development, influence agent skills and determine platform features. Holders enjoy free and/or discounted AI agent services, and can actively participate in shaping the project's road map and priorities.

, ensuring transparent fund use within the DAO’s treasury. Further details can be found in 

HeyAnon is one of the most promising projects in the emerging DeFAI market, combining advanced AI capabilities with actual utility. Its innovative features — automation, cross-chain interactions and data aggregation — could position it as a leader in DeFi and AI innovation.

With a strong team and an experienced DeFi founder in Daniele Sesta, HeyAnon’s road map is set to drive community-led development and enhanced DeFi solutions.

Intermediate

heyanon.png

HeyAnon (ANON): Daniele Sesta’s New DeFAI Platform

Swiss bank PostFinance has partnered with Sygnum to launch Ethereum staking, allowing customers to earn passive income via Ethereum blockchain integration into its e-finance platform.

Daily Top Performer — Morpho Protocol (MORPHO)

The S&P 500 dropped 0.21%, ending a three-day rise, with tech losses offset by gains in utilities, real estate, and industrials. Gold prices rose above $2,700, driven by weak US retail sales, rising jobless claims, and dovish comments from Fed Governor Waller, which fueled expectations of rate cuts. Falling bond yields further supported the uptrend, with gold targeting $2,750. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.10%, with Bitcoin rising by 0.69% and Ether dropping by 3.34%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is MORPHO, which surged nearly 37.1% following the launch of Coinbase's seamless crypto-backed loans powered by Morpho infrastructure.

Morpho Protocol (MORPHO), founded in 2021, is a decentralized Ethereum-based lending platform with a P2P order matching system. It offers customizable markets and Morpho Vaults for various risk levels. Initially launched in 2022 for Aave and Compound, it introduced Morpho Blue in 2024 for flexible lending. Morpho Labs continues to develop Morpho while supporting the original Morpho Optimizers. 

, allowing users to borrow USDC against BTC via the Coinbase app. The product offers competitive rates, flexible terms, and a seamless experience. This move highlights the growing use of Morpho's infrastructure for onchain finance, with more institutions expected to follow suit.

Check Out the Latest Prices, Charts, and Data of 

 with Sygnum to launch Ethereum staking, allowing customers to earn passive income via Ethereum blockchain integration into its e-finance platform. Customers can start staking with a minimum deposit of 0.1 ETH, and rewards will be displayed alongside other crypto assets. The service is currently limited to Ethereum, with plans to expand to other cryptocurrencies in the future.

Yesterday, Bitcoin spot ETF flows totaled $98.2M, driven by $168.2M inflows from non-GBTC products, offset by a $70M outflow from GBTC.

. Wave 1 eligibility is now live, limited to specific Quai Discord roles, with more waves to follow. NFT holders might qualify for allocations, though it's not yet confirmed.

Beginner

4.png

PostFinance Launches Ethereum Staking for Passive Income on E-Finance Platform

Top Hat is an AI-based token launchpad built on the Solana blockchain. Learn about how this project works in this article.

There’s currently a huge demand for token launchpads that allow everyday consumers to create their own 

 plans to meet this demand by pairing classic launchpad design with artificial intelligence (AI) technology. This exciting new product has the potential to make token creation more accessible and convenient than ever. If you're interested in learning more about Top Hat's design, check out this helpful guide.

Top Hat is an AI-based token launchpad built on the 

 blockchain. This user-friendly system requires no coding ability, and allows people to create personalized tokens and 

Not much is known about the team behind Top Hat. The project is a fairly new one, having just started in October 2024 and being made available to the public the next month. As of January 2025, its creators haven’t announced their identities. Instead, all of the communication from the Top Hat team 

 a Twitter/X account. Though this account hasn't revealed much about the creators' motivations or experience, it has disclosed that its team is focused on promoting AI and making Solana development fun and accessible.

Top Hat's goal is to provide the most user-friendly and low-effort experience possible. There’s a huge demand for launchpads, but many companies struggle to create one that can handle all of their potential users. By incorporating AI design, Top Hat hopes to reduce the burden of running a launchpad.

Top Hat’s other primary goal is to create a convenient space for people designing new cryptocurrencies and AI agents. Traditional web3 launches often require users to have advanced technical knowledge — such as the ability to code. Top Hat does away with such requirements, and instead guides users through a convenient interface. AI prompts, simple wording and clear menus make it much easier for the average person to create their own Solana-based token.

Top Hat runs on a Solana base integrated with Telegram, X and other social media sites. Solana is used to manage the cryptocurrency side of the website, generate tokens and keep track of individual transactions. 

Meanwhile, generative AI is used to create social media posts for each AI agent. This allows users' agents to develop their own personalities and socialize with each other. To guide users through the process of making AI agents, Top Hat employs the following mechanisms.

The manual build process allows people to create a customized, blockchain-based AI character. Simply link a Solana wallet, and follow the prompts from Top Hat as it asks for details about your desired personality, culture and goals for your character. A manual build also lets you create a new token and specify details such as token supply.

For those with a less defined concept, Top Hat also features a 

 setting. A user simply inputs their token contract address, and Top Hat's AI system will fill in all the details of the character for them. This can be useful for those who want to work with an AI agent but don't want to spend time designing the agent themselves.

Top Hat's creation options also include the ability to clone a public personality. Instead of defining a character themselves, users can simply enter the X account of a person, and the AI launchpad design will analyze and mimic that person's account. 

In just a few months, Top Hat has launched the public version of its site and acquired over 2,000 users. In 2025, Top Hat hopes to capitalize on its success by launching 

. This new and improved version of the site will include a full rebrand and more features for users to try out:

The HAT token plays a critical role in the Top Hat ecosystem. It's currently the native token for the site. Top Hat plans to add additional utilities in the future, such as fee payments and/or voting usage. The HAT token is 

, and the project’s owners plan to use the resulting revenue to buy back and burn 

There’s a maximum supply of 1 billion HAT tokens and a current total/circulating supply of just under 990 million. Because HAT is meant to be as accessible as possible, it features no predetermined distribution. Instead, anyone who wishes to acquire HAT can buy it directly from the market.

Looking to trade Top Hat tokens? Bybit now offers the HAT/USDT Spot trading pair. To get started, you’ll need to first create a Bybit account, fund it with cryptocurrency and navigate to the 

The Top Hat project is an exciting look at how crypto, AI and web3 technologies can be combined. It's grown rapidly, and has already acquired many users. This optimistic outlook is supported by HAT’s performance. Since its debut, its price has primarily stayed in the $0.05 to $0.10 range. There have been some notable price spikes, and a steady price increase that indicates opportunities for investors to profit. 

HAT certainly has some positive qualities, but keep in mind that this product is lacking in a lot of detail. Without knowing much about the team, or having a clearly defined idea of how the project’s technology runs, it's hard to say whether Top Hat is set up for long-term success. Therefore, it's a somewhat risky investment that investors need to approach cautiously. For best results, HAT should only be a small part of a diverse portfolio. Always 

 carefully before buying cryptocurrencies.

Through the power of AI, Top Hat makes it quick and easy to design custom, blockchain-based agents. These characters are capable of engaging with others on social media and managing complex plot lines. Thus, they have numerous applications for entertainment and meme coins. While Top Hat is still a new project that needs to fully prove its utility, it's already done a great job of appealing to a select group of web3 AI enthusiasts.

top hat.png

Top Hat (HAT): Solana's First No-Code AI Agent Launchpad

Bybit Learn

Crypto

What are inflationary and deflationary cryptocurrencies? Find out their differences and the best inflationary and deflationary cryptocurrencies to trade here.

 continues to be a hot button today as it impacts the purchasing power of currencies around the world. In the process, it affects the financial decisions of both businesses and private consumers. With inflation, it requires more fiat or cryptocurrency to buy the same item today than it did previously. 

At a lower level, inflation can be healthy, such as by encouraging economic growth. However, a high rate of inflation can have devasting effects. While many people have a solid understanding of inflation as it relates to fiat and fiat-based purchases, they may not be familiar with inflationary cryptocurrencies and deflationary cryptocurrencies.

An inflationary cryptocurrency is one that decreases in value over time through its tokenomics. Essentially, inflationary cryptocurrencies have an increasing or unlimited supply to keep up with or even exceed demand, and this creates downward pressure on the coin’s price.

The number of coins in circulation for an inflationary cryptocurrency rises over time, and there may not be an upper limit on how many coins can be minted in some cases. When an inflationary cryptocurrency issues more coins, investors and other users are more encouraged to participate in the platform’s activities. This places downward pressure on the price of the coins. For long-term investors, or HODLers, the pressure on the price of an inflationary cryptocurrency to generally rise over time is disadvantageous. However, volatility presents 

How Does an Inflationary Cryptocurrency Work?

The buying power of inflationary cryptocurrencies declines over time. This occurs because more coins are continually being minted. Based on a basic economic principle, the price of something decreases when it becomes scarcer. Because there is always a growing number of inflationary cryptocurrency coins available, however, the coin never becomes scarce. The unlimited supply means that the buying power of an inflationary cryptocurrency decreases over time.

A deflationary cryptocurrency is one that has a fixed supply of coins available. When demand increases, only a limited supply of coins may still be available for release, and this leads to increased value over time.

Because these cryptocurrencies have a fixed supply, there will be a point where no additional coins can be minted to keep up with demand. As a result, those who hold deflationary cryptocurrency coins may be compensated at a higher level when selling their in-demand coins. This upward pressure on the value of deflationary cryptocurrencies could make them more advantageous for HODLers than an investment in inflationary cryptocurrencies. In addition, you can generally expect to see an increase in purchasing power with deflationary cryptocurrencies.

How Does a Deflationary Cryptocurrency Work?

Once the set supply of coins for a deflationary cryptocurrency coin has been released, no additional coins can be created. The same principle related to price and scarcity that applies to inflationary cryptocurrencies also applies here. As the demand for a deflationary cryptocurrency increases, investors and users will pay more because the supply is limited. No deflationary cryptocurrency coins are being minted to keep up with demand. Over time, you may be able to purchase more goods with a deflationary cryptocurrency than you previously could.

How to Determine Whether a Cryptocurrency Is Inflationary or Deflationary

When you research cryptocurrencies for your next investment purchase, it is essential to pay attention to the inflationary versus deflationary nature of the options available. The price of cryptocurrencies can swing wildly within a short period of time, but you may also need to assess what a specific cryptocurrency’s value may be over a longer period of time. Since a deflationary cryptocurrency has a limited token supply, the coins may be more suitable for a long-term hold. What are the factors to review in order to determine if a cryptocurrency is inflationary or deflationary?

 of all cryptocurrencies online. One of the key pieces of information to look for is the cryptocurrency’s maximum supply. A deflationary cryptocurrency has a 

 on its maximum supply of tokens. This means that once that specified number of tokens has been created, no additional tokens will enter the supply from mining, minting or other methods. The maximum supply is usually clearly detailed in a cryptocurrency’s white paper.

Through your research, you will also see a specific cryptocurrency’s circulating supply. This describes the number of coins that are available at that point in time for buying or selling. These are tradable coins, so coins that are 

 or otherwise off the table are not considered in the circulating supply count. A platform can encourage its users to stake their coins in various ways, and this can decrease the number of coins in the circulating supply.

The total supply of tokens describes the total amount that has been 

 or created. This includes the tokens that are in the circulating supply and tokens that are reserved or locked. However, tokens that have been lost, destroyed or burned must be subtracted to reach an accurate total supply number. A deflationary cryptocurrency can also burn some of its tokens to reduce the total supply available. An example of a deflationary cryptocurrency that did this is 

 (XRP). On the other hand, an inflationary cryptocurrency has an unlimited or increasing supply of tokens.

Inflationary Cryptocurrency vs. Deflationary Cryptocurrency

The key differences between the inflationary and deflationary status of cryptocurrencies could impact your investment decisions as well as the long-term returns that are generated by your token purchases. To get a better understanding of inflationary vs deflationary cryptocurrency, a review of their differences and similarities is in order. Inflation describes the growth in price while deflation relates to a reduction in price. However, when you compare inflationary and deflationary cryptocurrencies, both are directly related to the token supply. A closer look at the mechanisms driving these different types of cryptocurrencies can highlight their unique traits.

The token supply for a deflationary cryptocurrency token is fixed. Once the total supply has been released, no additional tokens are available. This is in direct contrast to inflationary cryptocurrencies. These cryptocurrencies have a floating or unlimited supply. Because there is always a possibility of new tokens being created and the mechanisms in place to do so with an inflationary cryptocurrency, demand will never be higher than supply.

Whether a cryptocurrency is fixed or floating directly impacts supply and demand. The supply of inflationary cryptocurrency coins is said to be floating because it increases over time. By doing so, it keeps pace with demand. As a result, the token price may not be driven by the supply and demand mechanism. On the other hand, the supply of deflationary cryptocurrency tokens is steady or fixed. Demand may increase, but there are only so many tokens available to meet that demand. This causes upward pressure on the value of deflationary cryptocurrencies over time.

It is important to note that some inflationary cryptocurrencies are designed with deflationary or limiting mechanisms to moderate the effects of inflation on token prices. For example, some cryptocurrencies have a burning mechanism, which could rein in the supply when demand is high. Others mint and destroy their tokens as needed to maintain a stable price. These are referred to as stablecoins. In addition, some cryptocurrencies charge a transaction fee. By burning this fee, they are able to continue releasing tokens from an established supply while maintaining a deflationary status to minimize inflation.

Generally, the value of inflationary cryptocurrencies decreases over time because more tokens are being released. As the value of an inflationary cryptocurrency token declines, the purchasing power of the token drops as well. Essentially, it may take more of those tokens to purchase a product a few years from now than it takes today. Deflationary cryptocurrency tokens generally will increase in value over time. Demand for a limited supply of these deflationary tokens drives the value higher. As a result, the purchasing power of these tokens tends to increase. It may take fewer of these tokens to buy a product a few years from now compared to what it takes today.

Many of the top cryptocurrencies in use today are inflationary. Due to the extreme volatility of cryptocurrencies, shorter-term investments may make sense for some investors. In addition, some of the inflationary cryptocurrencies have mechanisms to limit the effect of inflation, and this may make them more appealing to some investors. What are some of the best inflationary cryptocurrencies available on Bybit?

 rose to popularity several years ago. While it quickly became well-known that it was created as a joke, investors have continued to flock to this 

. Soon after its debut, a large online community developed, and this community continues to be active today. Dogecoin’s popularity largely drove the token price upward initially. In fact, in August 2021, Dogecoin was recorded as the 

 by market capitalization. As of Jan 26, 2023, its ranking has dropped to ninth place. The value of DOGE is expected to decline steadily over the course of time. 

There are currently more than 137 billion DOGE tokens in circulation today. This supply increases annually by five billion, and there is no token supply limit. Dogecoin does not have any mechanisms to rein in inflation, such as a burning mechanism. Its value has been highly volatile throughout most of its history. The current 

 supports digital gaming and other forms of entertainment, and it uses FLOW as its native token. The platform has been specifically designed for ease of use by users and developers, and it has a built-in structuring mechanism to make it modular for future growth. FLOW can be used in the apps tied to the platform, and the tokens can also be traded, held or staked. FLOW is used to complete network functions and is in constant demand. 

Rather than creating and distributing tokens to recruit validator node operators, Flow runs off of decentralized communities. This results in Flow's inflationary structure. However, it stands out with its unique structure to minimize, but not eliminate, inflation. Specifically, 100% of FLOW’s inflation is 

 to its stakers. This means that dilution is kept in check as long as a user is an active participant. 

The circulating supply of FLOW is 1.04 billion, and the maximum supply is 1.41 billion. The current 

 has quickly risen to prominence since it debuted in 2020. It supports the development of DApps on its network. It also serves as an exchange for transactions without the need for a middleman. Polkadot is often compared to 

The circulating supply of DOT is close to 1.2 billion, and the total supply is nearly 1.28 billion. There is no maximum supply. However, Polkadot uses 

 to minimize the effect of inflation. This is accomplished through long-term staking rewards. Because of this unique mechanism, the price of DOT is relatively stable in comparison to many other inflationary cryptocurrencies. As of Jan 26, 2023, 

A deflationary cryptocurrency has a fixed supply of tokens. As a result, the value of the token will increase over time as demand increases. Cryptocurrency prices are highly volatile overall, so there could be wild swings in prices from day to day. However, over a longer period of time, the value may generally trend upward. This makes deflationary cryptocurrencies a reasonable, long-term investment option for some people. However, other factors impact cryptocurrency values as well, and all factors should be taken into consideration before buying any crypto coins. Here are some of the best deflationary cryptocurrencies you can consider buying on Bybit.

 is a digital payment network that functions with its native token, XRP. Unlike many other platforms, it does not use blockchain mining. Instead, its consensus mechanism is used to confirm transactions. This mechanism operates off of several bank-owned services. It is known for its fast processing times and low transaction fees. Ripple is often considered to be an alternative to the international payment system 

The circulating supply of XRP is 50.8 billion, and its 

 is $0.4111 (as of Jan 26, 2023). XRP has a maximum supply of 100 billion tokens, which were premined. 55 million of these tokens were locked up by Ripple and are slowly being released from their escrow status via 

. A very small transaction fee is charged for each Ripple transaction, and this fee is burned. 

 is a Layer 2 scaling solution that aims to support connections and networking of blockchains. By doing so, it has built an Ethereum-compatible, multi-chain blockchain ecosystem. It is comparable to Ethereum in that transaction processes use a 

 (PoS) mechanism. In addition, Ethereum supports the security of activities on the Polygon blockchain platform. The native Polygon token, MATIC, is primarily used for staking and paying fees. 

An important update to Polygon occurred in January 2022. At that time, the cryptocurrency introduced its new 

. This burning mechanism serves the important function of stabilizing the Polygon token supply.

The circulating supply of MATIC is close to 8.98 billion. The total supply and maximum supply of MATIC are set at 10 billion. The current 

 is a cryptocurrency exchange that allows users to buy and trade cryptocurrencies. Its native token is BNB, and some users choose to hold BNB as an investment. BNB can be traded on other exchanges, including Bybit. In addition, BNB can be used to purchase services and goods in the real world. BNB is subject to automated burns. This maintains its total supply near a fixed number. The number of tokens burned is adjusted as needed. Further, gas fees are collected on each transaction made on Binance, which are then burned. 

 is $305.33 (as of Jan 26, 2023). The circulating supply of BNB is almost 135 million, and the maximum supply is 200 million while the total supply is roughly 157 million.

Bitcoin is by far the most popular and well-known cryptocurrency in use today. To date, 19 million of its total supply of 21 million coins have been released and are in circulation. Some may argue that Bitcoin is actually inflationary because while it may seem like Bitcoin is close to reaching its limit, it has built-in mechanisms such as 

 to stretch this out. In fact, it is said that the limit is not expected to be reached for more than 100 years. 

However, as the amount that Bitcoin miners receive for their efforts gets smaller with each halving, the circulating supply is kept from growing too much at one time. Further, since there is a fixed supply of BTC available, there would be a limited supply once all BTC coins have been mined. This would result in the value of BTC gradually increasing over time. Hence, Bitcoin is ultimately a deflationary cryptocurrency.

There are inherent differences between inflationary and deflationary cryptocurrencies. The differentiation is determined by the token supply. In addition to specifying a hard cap or having an unlimited supply, cryptocurrencies may use burning and other mechanisms to control supply. Because token supply directly impacts the price of cryptocurrencies over a longer period of time, this is an important factor to consider when making a purchase or investment.

Inflationary vs. Deflationary Cryptocurrency: The Key Differences

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards