Crypto Inflation Explained ADA, HBAR, ONDO, POL & ALGO | Part 1

[00:00:00]I've compiled and analyzed the data from several major market data sources and tokenomics trackers, examining 15 major cryptos from a perspective that most crypto investors completely overlook.

[00:00:12]And what I discovered completely exposes one of the biggest blind spots in crypto. Nobody is talking about this, and it will fundamentally change the way you evaluate and think about your crypto investments forever.

[00:00:33]The vast majority of the population are well aware of inflation in regard to dollars, but very few people in the cryptosphere think about how inflation affects their investment.

[00:00:46]Stick around to the end of this video to find out which of these cryptocurrencies has an inflation rate of over 250%.

[00:00:55]As more dollars are printed day by day, the amount of circulating currency explodes.

[00:01:03]Which causes inflation to continue to rise over time as the currency expands.

[00:01:08]As the money supply continues to rise, so do the prices on everyday goods that we rely on, such as food, rent, products and services that we use on a daily basis.

[00:01:21]But currency inflation works different than crypto because dollars are used as the global settlement mechanism.

[00:01:28]In crypto terms, many cryptos still suffer inflation as their supply is increased.

[00:01:36]As the supply of any individual cryptocurrency increases over time, especially during times of economic downturns, like major bear markets, as there is less currency circulating throughout the economy chasing after these cryptos that have an ever expanding supply.

[00:01:57]Because increasing the supply of any crypto dilutes and depresses the price over time, especially when prices are bearish.

[00:02:06]Not only that, but it also makes it even harder to take out the previous all-time high unless it gets additional capital inflows to increase the market cap.

[00:02:19]Some of the most sought-after coins on the market like Solana and Ethereum, the second largest coin by market cap. Both of these coins have an infinite supply, meaning they could be printed into oblivion, which is one advantage that cryptocurrencies like Bitcoin have in regard to their capped supply as they are inherently disinflationary.

[00:02:41]But before we get into these five cryptocurrencies, going over those inflation rates, do me a favor, hit that like button and subscribe to the channel. I'd really appreciate it.

[00:02:52]If you've been holding crypto for any amount of time, then you're already well aware of the crypto roller coaster. It's quite a game that we play.

[00:03:03]Many investors who have bought in the last couple of years holding their coins long-term are now deep in the red on their positions.

[00:03:12]And if you're a long-term crypto investor, it's even more important that you come to understand exactly what I'm about to discuss.

[00:03:20]This is how I calculated the inflation rate of the five cryptos that I'm about to go over.

[00:03:26]The annual inflation rate of the following cryptocurrencies is calculated by dividing the projected or planned increase in the liquid supply over the next 12 months by the current liquid supply.

[00:03:38]Now taking a look at Cardano, ADA, the inflation rate is currently sitting at 3.06%, which really isn't that bad. The circulating supply is currently sitting at 37.28 billion with a max supply of 45 billion.

[00:03:54]This means that 82.84% of all Cardano that's ever going to be minted is already in circulation. When we look at the ADA chart going back to September of 2021, we can see where it set this high right here indicated by the red arrow, which was 1,764 days ago. Even with the low inflation rate that ADA currently has, it has still been unable to set a new all-time high since that time. Algorand, ALGO, with a current inflation rate of 3.76%.

[00:04:29]It also has a circulating supply of 8.96 billion with a max supply of 10 billion, which means that 89.6% of all Algorand that's ever going to be minted is already in circulation. And even with this low rate of inflation, going back to November 2021, Algorand [clears throat] has been unable to set a new all-time high in the last 1,703 days going all the way back to November 1st of 2021. Now, we're going to see some incredible inflation rates. Taking a look at Hedera, HBAR, with a current yearly inflation rate of 22.49%.

[00:05:09]It has a circulating supply of 43.79 billion and a max supply of 50 billion, which means that 87.58% of all the Hedera that's ever going to be minted is already in circulation.

[00:05:23]When we look at the HBAR chart going all the way back to September of 2021, HBAR has been unable to set a new all-time high in the past 1,764 days. And there's no doubt that this yearly inflation rate being so high is contributing to the fact that it has been unable to do so. When we look at Polygon, the current inflation rate is sitting at 88.45% per year. The circulating supply is currently at 10.68 billion, and the max supply is infinite, meaning they can print Polygon into oblivion, completely diluting anyone who holds this crypto.

[00:06:08]When we look at the chart, and keep in mind, this is the MATIC chart, since switching its name to POL, it has moved to a new chart. So, there's a portion of the chart here that we're not seeing, but I did extend these numbers to mark the current date. But, since setting this all-time high, right here in December of 2021, Polygon has been unable to set a new all-time high, and there's no doubt that this high rate of yearly inflation is not making it any easier. Taking a look at Ondo, which has the highest inflation rate out of any of the 15 cryptocurrencies that I am covering in these three videos. With the current inflation rate sitting at 250.37% per year. The circulating supply is currently 4.87 billion, with a max supply of 10 billion, which means that 48.7% of all the Ondo that's ever going to be minted has already been put into circulation. This inflation rate is absolutely staggering. And when we look at the chart, even though we see a much more recent all-time high set right here in December of 2024, there's absolutely no doubt whatsoever that the yearly inflation rate of over 250% is contributing to the fact that price has been pushed down considerably, coming from the $2 range to where it's now trading at about 36 cents. Not to mention, with all of this additional supply, which has been released over the last 2 and 1/2 years, diluting the value of each coin, it's going to be significantly harder to take out this previous all-time high without additional capital inflows increasing the market cap to make up for the difference in order to push the price up above this previous all-time high, which is one of the things that very few people take into account. The more you inflate a cryptocurrency, the more that's put into circulation, the less each coin in existence is worth. And since each of those coins has been devalued in order to reach previous peaks, like all-time highs, you have to increase the capital inflows, giving you a bigger market cap in order to take out these previous highs. In order for Ondo to set a new all-time high, it's going to have to have a larger market cap when it does than it had right here to compensate for the increase in supply caused by the 250% in yearly inflation.

[00:08:37]And this video has been part one of a three-part series. In the next video, I'll be going over the inflation rates of Chainlink, Sui, Cosmos, Render, and IOTA. So, click this video right here in the upper right-hand corner to start watching part two.