Ethereum Is Predicted To Be Deflationary

A new project named XEN Crypto has occupied over half of Ethereum's block space, causing network issuance to drop and gas prices to soar.

As a result, beginning October 8 the supply of Ethereum has started decreasing. According to the Ultrasound.Money dashboard, the asset has turned deflationary, at least temporarily, with a supply growth of -0.41%. More than 1,300 ETH, totaling almost $1.7 million, have been burned in the last day due to XEN Crypto.

The Fair Crypto Foundation, an organization sponsored by former Google employee Jack Levin, developed the ERC-20 token XEN. The token's website states that it would enable users to "mint their way to freedom."

With no permit and a set supply, the token adopts a novel strategy. The coin can be eternally minted by holders, but as more users join the network, the minting difficulty is anticipated to increase. Immutable contracts and admin keys are absent from XEN.

The project seeks to advance the original cryptographic concepts of "self-custody, trust through consensus, transparency, and decentralization," according to its website.

At the time of release, XEN had over 416,288 active minters and a total supply of 771,520,659 XEN. The project encourages users to stake their tokens with a 20% APY, and some holders have already started to do so. There are already 116 active stakes, with almost 10 million tokens staked.

Some exchanges, including Gate.io, Huobi, MEXC exchange, and Uniswap, have listed the token due to the rising interest in it.

XEN has lost more than 80% of its value in the previous 24 hours, according to Coinmarketcap. After temporarily reaching above $1, the asset is currently trading for $0.001036.