XEN Crypto Launches on the Ethereum (ETH) Network, Making ETH a Deflationary Asset

Much to the dismay of investors, the Ethereum merge failed to instantly make the Ether a deflationary asset.

XEN Crypto low down dropped what happened

To the dismay of investors across the crypto sector, the Ethereum merge proved unable to immediately make the Ether a deflationary asset. However, that wish has now been fulfilled, as new crypto XEN launched on the Ethereum chain, bringing a deflationary mechanism to the ETH.

Interest in XEN Spikes After Launch

On Saturday, October 8th, XEN, a project created by the Fair Crypto Foundation, was launched as a “Proof of Participation” (PoP) consensus mechanism.

The project has no initial supply or supply cap, but allows users to mint tokens by paying only the related gas fees. Less than 24 hours after its launch, more than 133,000 wallets were already minting the XEN token. 

Sponsored

Santiment reported that the burgeoning interest in XEN saw the number of daily addresses created on the Ethereum network rise to hit a new nine-month high. Santiment wrote:

XEN Accelerates Deflation on Ethereum

On October 8th, XEN contributed to more than 43% of all transactions that took place on the Ethereum chain. In that period, more than 1,300 ETH, with an approximate value of $1.8 million, was burned.

Data from UltraSound Money illustrates that, immediately following the merge, Ethereum’s inflationary status stood at 0.21%. However, since XEN’s weekend launch, that figure has declined to lie in the region of 0.12% at press time.

On the Flipside

  • Since XEN’s peak price of $1.23 at launch, it has tumbled by more than 99% to trade at $0.001162 at the time of writing.

Why You Should Care

The fees paid in ETH to create XEN tokens are then burned, giving Ethereum (ETH) the status of deflationary asset. 

Another project is launching to improve Ethereum’s scaling. Find out more:
Matter Labs To Launch Revolutionary Ethereum (ETH) Scaling Solution zkSync 2.0 This Month

Read about other areas Ethereum is growing in:
Ethereum Name Service (ENS) Sets New Record With Over 437K New Monthly Registrations

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia