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How Does a High Token Inflation Rate Affect the Value of a Cryptocurrency?

High inflation increases supply faster than demand, leading to downward pressure on the token price.
Greeks.Live17.11.25

How Does a High Token Inflation Rate Affect the Value of a Cryptocurrency?

A high token inflation rate, meaning the circulating supply increases rapidly, generally exerts downward pressure on the token's price. If demand does not keep pace with the supply increase, the value of each individual token decreases.

This is a critical factor for long-term investment viability.

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