Ethereum’s supply growth entered a deflationary state on Saturday, a first for the blockchain since The Merge upgrade that shifted the network to a proof-of-stake consensus mechanism in September.
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Ether’s (ETH) burn rate has gone up along with gas fees (transaction fees) since Saturday behind the immense traffic brought on by a new cryptocurrency called XEN Crypto.
XEN Crypto is an ERC-20, or an Ethereum-based cryptocurrency, which accounted for nearly 30% of the network’s transaction fees over the past day, according to Etherscan data.
The cryptocurrency was created by ex-Google engineer Jack Levin and launched over the weekend, offering free minting for users willing to pay gas fees.
Ethereum’s price has not reflected the rising scarcity presented by its falling supply, and was trading at US1,290, down 1.85% in the past 24 hours, according to data from CoinMarketCap.
XEN was trading at US$0.01569 at the time of press after opening at US$0.0057 on Sunday, according to CoinMarketCap data.
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