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.
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:
📈 #Ethereum saw a surge of new addresses created Saturday, with 135,780 new $ETH addresses popping up on the network. This is 11.1% more network growth than the next highest of 2022 (Jan 3rd). Utility rises commonly foreshadow potential asset breakouts. https://t.co/tIRv6sJxJc pic.twitter.com/boA6v5jk8W— Santiment (@santimentfeed) October 9, 2022
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