Back to glossary
Hyperinflation
Hyperinflation is a situation in which the supply of a given token is rapidly and significantly increasing, leading to a sharp decline in its value. It can happen for a number of reasons, including an increase in coin production, a high inflation rate pre-programmed into the currency’s code, or a decline in coin demand.
Holders of crypto may suffer a negative effect from hyperinflation because their investments may lose their value. Most cryptocurrencies, however, have a fixed total supply, unlike fiat money. To assist prevent hyperinflation, some of them also have a hard cap or limit on the total number of coins that can be mined.
Discover other #Advanced terms in DEXTool's Crypto Glossary
ETF (Exchange-Traded Fund) Stock-to-flow WAGMI NGMI Wash Trading Hedging Bearwhale Apes Laser Eyes Shilling Bagholder Layer 1 DEG (Decentralized Ecosystem Governance) Permissionless development Cross-chain Stop Loss TVL (Total Value Locked) Miner Extractable Value (MEV) TPS (Transaction per second) Total exchange volume