Skip the Pi Network and opt for these deflationary altcoins as an alternative investment instead.
Crash of Pi Network Price Post-Mainnet Launch
The price of Pi Network's Pi coin has plummeted from its all-time high following its mainnet launch in February. On Thursday, the Pi coin dropped to $0.62, down 62% from its highest point this year and a whopping 80% from its all-time high.
One of the primary reasons behind the ongoing crash is token inflation, with millions of coins being unlocked daily. Experts predict that over 1.5 billion PI tokens will be unlocked in the next 12 months, translating to significant downward pressure on the price.
Meanwhile, deflationary altcoins that reduce their circulating supply through mechanisms like token burns are capturing attention. Let's check out some top blue-chip deflationary altcoins worth considering.
Binance Coin (BNB)
BNB is a must-buy deflationary altcoin due to its real-time and quarterly token burns. A portion of the gas fees in its network gets incinerated in real-time. The funds burned over time amounted to a staggering $172 million.
In addition, Binance Smart Chain (BSC) conducts quarterly burns based on the number of blocks generated during the period. These burns have annihilated over $1 billion in tokens per quarter. The burn program will continue until the circulating supply is reduced from over 140 million BNB to 100 million.
BNB is backed by robust network fundamentals. In the past 30 days, protocols on BSC have processed over a breathtaking $227 billion in transactions, surpassing Ethereum, Solana, Base, Arbitrum, and Unichain combined.
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Tron (TRX)
TRX is another deflationary token worth investing in. The TRX supply has been in decline over the past few years, moving from 101.9 billion in 2021 to 94 billion today.
The deflationary effect of TRX comes from its burn mechanism, where more tokens are destroyed than created. On Thursday alone, 7.6 million TRX were burned, while only 5.06 million were generated.
TRX tokens get burned through transaction fees and smart contract executions. Tron is one of the busiest blockchains, handling a majority of Tether transactions. Over the last 30 days, the network has processed 268 million transactions.
Terra Luna Classic (LUNC)
Terra Luna Classic, surviving Terra's collapse, actively reduces its token supply through burns. Since 2022, Terra Luna Classic has incinerated over 410 billion tokens, bringing the circulating supply to 5.48 trillion tokens. The network has burned 735 million coins in the last seven days.
Most of the burn activity has come from Terraform Labs in times of bankruptcy. Binance, DFLUNC Protocol, LunaticsToken, and MEXC have contributed significantly to the burns as well. Binance burns a portion of the fees it earns from LUNC trading each month.
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Keep in mind that token burns can significantly influence the deflationary nature of cryptocurrencies, like Binance Coin (BNB), Tron (TRX), and Terra Luna Classic (LUNC). While Binance Coin (BNB) has an active token burn mechanism, Tron (TRX) and Terra Luna Classic (LUNC) rely more on sporadic community initiatives for burns. Market conditions and community efforts drive the value of TRX and LUNC more than the systematic reduction in their supply.
- Despite the Pi Network's Pi coin price crash post-mainnet launch, deflationary altcoins like Binance Coin (BNB), Tron (TRX), and Terra Luna Classic (LUNC) are garnering attention due to their token burn mechanisms.
- Binance Coin (BNB) is a notable deflationary altcoin with real-time and quarterly token burns, amounting to over $172 million burned in gas fees alone.
- The Binance Smart Chain (BSC) conducts quarterly burns based on the number of blocks generated, annihilating over $1 billion in tokens per quarter.
- BNB's network has processed over $227 billion in transactions in the past 30 days, surpassing several other blockchains.
- Tron (TRX) is another deflationary token worth investing in, with its supply declining from 101.9 billion to 94 billion over the past few years.
- Terra Luna Classic (LUNC), surviving Terra's collapse, has incinerated over 410 billion tokens since 2022, bringing the circulating supply to 5.48 trillion tokens.
- Market conditions and community efforts drive the value of TRX and LUNC more than the systematic reduction in their supply, as opposed to Binance Coin (BNB)'s active token burn mechanism.
- Other deflationary altcoins, like Binance Coin (BNB), Tron (TRX), and Terra Luna Classic (LUNC), could offer potential investment opportunities, given their token burn mechanisms that reduce their circulating supply.
