ETH Issuance Dips To 0.0011% As XEN Minters Burn Gas
ETH issuance is about to enter into a deflationary mode. In most cases, this occurs whenever there is a rise in gas consumption and on-chain activities.
Meanwhile, on-chain activity on the Ethereum blockchain increased last weekend. This increase has caused a rise in gas consumption and ETH burning.
Users Burn Over 210 ETH For XEN
Ultrasound.Money, a crypto tracking platform, revealed that the token, XEN, is among the highest gas user currently. In the last 24 hours, Xen users have burnt over 210 ETH (around $260,000) in gas fees.
This amount of burnt ETH is higher than what Unisoft, Tether, and OpenSea consume. Consequently, the high gas consumption has pulled Ethereum issuance close to zero (about 0.0011% per year).
Meanwhile, XEN Crypto, a project developed by “The Fair Crypto Foundation,” is backed by Jack Levin. Levin is among the first individuals to work on the Google Cloud infrastructure.
The project aims to empower individuals with a coin that has no CEX listings, fixed supply, immutable contracts, or admin keys. However, some crypto observers believe it is similar to the HEX token and could be a Ponzi token.
Levin launched XEN in October. Meanwhile, anyone can stake, mint, and claim XEN. Several crypto holders have shown great interest in the project and token, reflecting the high ETH gas consumption.
However, the token’s price had dropped by about 98.7% from its all-time high of $0.00037 when it was launched. In either case, the minting of XEN has been driving up gas costs while simultaneously driving down the issuance of ETH.
Analysts predict that once on-chain activity comes back up, Ethereum deflation will be very high.
Ethereum Staking Gaining Momentum As Price Dips
Meanwhile, ETH staking is gaining wide acceptance in the crypto community. Per Beaconcha.in, crypto holders have staked over 15.6 million ETH (worth about $19.4 billion).
Furthermore, the amount of ETH staked represents 13% of its circulating supply. In other news, the Ethereum Developers have disclosed that the upcoming Shanghai upgrade will implement the EIP-4895 protocol.
This update would allow users to withdraw their staked Ethereum locked on the Ethereum Beacon Chain. Unfortunately, ETH’s price hasn’t soared despite these positive developments.
According to CoinGecko data, ETH is currently trading at $1,254 and has declined by 1.7% in the last 24 hours. The number one altcoin is 74.5% away from its all-time high of $4,815 last November.
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