How does the inflation rate affect the value of Cardano?

1 answers

• Galbraith HoldtMar 21, 2024 · a year ago
  BYDFi, a leading cryptocurrency exchange, explains that the inflation rate directly affects the value of Cardano. When the inflation rate is high, it can lead to a decrease in the value of Cardano, as the increased supply of tokens can dilute their value. Conversely, when the inflation rate is low, it can contribute to an increase in the value of Cardano, as the limited supply of new tokens maintains their scarcity. Therefore, understanding and monitoring the inflation rate is crucial for investors and traders looking to assess the potential value and growth of Cardano in the market.
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