Home News Stand GryffinDAO, Avalanche, Solana Set to Soar, As Eurozone Brace for Hyperinflation

GryffinDAO, Avalanche, Solana Set to Soar, As Eurozone Brace for Hyperinflation

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The second to last quarter of 2022 has never been any good for major economies of the world. The Ukrainian-Russo war crisis coupled with looming economic and trade wars between some economies such as the US and China has disrupted major economic activities and also led to a limited supply of Agro and energy services and products.

The year 2022 will also be remembered as the year cryptocurrencies also did a lot of investors dirty. Bitcoin and many altcoins dipped so aggressively that many DeFi startups paused activities or liquidated their holdings. A typical example of the catastrophe was the Terra Luna (LUNA) incident which swept more than 99% of LUNA’s value and deeply affected the price of its algorithmic stablecoin, UST.

Hyperinflation is already beginning to hit the world economy, plunging many other economies into recession. Although crypto appears to be the way out of the mess, there is still a lot left unchecked. We take a deeper look into hyperinflation and crypto as the solution and also peer into 3 cryptocurrencies expected to soar as 2022 comes to a close: GryffinDAO (GDAO), Avalanche (AVAX), and Solana (SOL).

What is Hyperinflation?

Hyperinflation is a situation where the prices of goods and services continue to rise abruptly as the legal tender of the affected jurisdiction plunges in value. People who use, hold, or trade currencies of affected economies begin to seek alternative options to store their assets, particularly more stable currencies, and asset safe-havens.

As of September 2022, the inflation rate of Euro states, comprising 16 member states, rose from 8.9% in July to 9.1% in August, with experts predicting higher inflation rates looming, according to financial reports from Eurostats.

Many economies outside of the Eurozone also suffer from alarming inflation rates. For instance, Germany’s inflation rate hit its highest point in nearly 50 years. Same thing with France and Spain. The European Central Bank has placed measures such as interest rate increments to reduce the situation, however, this has not proven to be the best at hand. Can cryptocurrencies play a role in curbing hyperinflation?

Cryptocurrency and hyperinflation

Cryptocurrencies are not free from inflation, especially because they derive intrinsic values from inflation-ridden legal tenders. Also, regular minting and unlocking of new tokens or coins make crypto vulnerable to inflation.

However, unlike fiat, cryptocurrencies have the potential to beat inflation or suffer inflation at a lower rate because of their high volatility, profitability, and inflation regulatory protocol such as token burning or vesting.

Cryptocurrencies have often been seen as safe havens among many investors because of their low inflation rates. However, since crypto isn’t regulated in many jurisdictions and can’t be trusted due to outrageous volatility, people are on the lookout for alternative safe havens.

Nevertheless, here are a few reasons why crypto could be the solution.

Crypto could be the solution — here’s why

Financial reports on the US dollar since 2019 show that it only appreciated by 8% since 2019, meanwhile, BTC has returned more than 240% within the same interval. This includes neglecting the inflation rates on both fiat and BTC during this interval, plus BTC retracing and having price corrections of more than 60%.

From the above report, it is obvious cryptocurrency can be a better alternative than fiat during economic recessions/depressions. Why so? Let’s see more. We’ll also see some reasons why crypto might not be a better option, especially in a world controlled by the government.

1/ Crypto has a lower inflation tendency

Earlier, we highlighted an instance, based on stats, where crypto could be a store of value better than forex. Well, this is true as we saw that despite BTC’s price corrections, it still presented a better ROI than many forex reserves.

Many cryptocurrencies maintain “burning” mechanisms to combat inflation rates, most especially tokens that do not have a specified total supply, or tokens that are yet to fulfill their token supplies. Deflationary tokens (tokens with a specified total supply) usually have low inflation rates.

Alternatively, inflationary tokens (which may suffer inflation) maintain protocols that reduce inflation. At most, inflationary token systems have a fixed inflation model that facilitates the profitability of the token over time.

2/ Crypto accrues lesser fees

Except for Ethereum, the fees of the token standards of Ethereum killers such as Cardano, Tron, Solana, etc., cost less than $0.01 for every transaction. Compare this rate to onramp or money services like Paypal or Western Union which charge up to 5% for every transaction. Some even charge fixed rates that could amount to $25 per transaction.

3/ There could be limited taxation on crypto-based purchases

Crypto-based purchases are anonymous, making it easy to beat taxes. While this is not a good practice, many merchants have been able to trade legal and illegal stuff over the internet without paying a dime on taxes.

The cryptocurrency, Monero, is popularly used for anonymous transactions over the internet and was commonly used on the darknet trading platform, Silk Road.

4/ Crypto is borderless

Crypto doesn’t have boundaries unless the jurisdiction does not have access to the internet which is not even possible. Anyone can easily download a crypto wallet or use a web application to carry out transactions discreetly anywhere in the world. This is unlike fiat, which you must transfer between internet money services or from one internationally recognized bank to another.

Why crypto may not be a great option in the current world

Cryptocurrency has continued to face setbacks mostly from the government who are not in support of decentralization but may like the idea that it is widely accepted by the people. The Crypto market is unregulated and extreme sentiments have been known to affect its price greatly.

Needless to say, crypto has faced backlash from countries that accepted it as legal tender, for instance, Venezuela. Citizens have expressed their frustrations following crypto winters. For this reason, it is important to say that regulating the crypto market is one way to set crypto on the part of being widely adopted as a solution to hyperinflation killing many world economies.

GryffinDAO Token joins Avalanche, Solana for potential spike amid energy and food crisis

Avalanche is an Ethereum-killer network designed to provide super-fast crypto transactions and encourage scalability in DeFi. Avalanche’s block finality is around 10 seconds from initiation which is more than 1000 faster than Ethereum.

Avalanche’s native currency, AVAX, alongside Solana, has continued to show strong signals of booming in the coming fiscal year. In August, there was a strong spike which later plunged. The spike saw AVAX and SOL soar by more than 30% respectively.

However, many traders could long AVAX and SOL when tokens hit potential low points of $17 and $28 in Q4 2022. This could cause prices of both tokens to soar longer into 2023.

GryffinDAO Token is a newcomer to the crypto market and appears to be imitating AVAX and SOL’s price patterns. GryffinDAO Token will promote the crypto community as the powerhouse of DeFi and encourage more support from crypto enthusiasts through its native coin, GDAO.

The $GDAO token will be required to participate in GryffinDAO’s governance protocols. Additionally, holders may earn amazing rewards available in the ecosystem. $GDAOcould become the next Avalanche and Solana and could spike more than 1000x after the presale.

Want to hodl some GDAO tokens ahead of IDO? — Here is how you can do that:

  1. Head to GryffinDAO’s official website where the presale is currently held. (https://gryffindao.com/)
  2. Next is to register for presale by clicking the “Enter Presale” red button on the landing page.
  3. Enter your basic info in the assigned fields and enter the crypto payment method and amount. Your payment method and amount determine how much bonus you receive upon signing up and purchasing within 30 minutes.

As such, GryffinDAO’s presale is scheduled to run for 60 to 90 days. During this period private buyers may accumulate more than 1000% bonuses cut across referrals, instant sign-up and purchase options, and subsequent purchases.

Learn more below:

 

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