A point worth noting is that cryptocurrencies with a finite supply are deflationary by default. They achieve this status since as long as investors buy and hold the coin, its supply reduces. An excellent example is Bitcoin, the king coin in the crypto market and retaining the highest dominance to date.

Are all cryptocurrencies deflationary?

Fiat currencies fall into the category of inflationary currencies, while most cryptocurrencies are deflationary in one way or another. The currency rates of fiat currencies are floating (their value is relative to other currencies).

What's a deflationary cryptocurrency?

A deflationary cryptocurrency is a form of cryptocurrency with a depreciating supply of coins. In simple terms, the number of coins in circulation decreases, making an individual coin more valuable. Deflationary cryptocurrencies often have a fixed, maximum supply cap embedded within their code that cannot change.