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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Fast facts

  • 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.
  • Nearly 5,000 ETH in gas fees have been burned, or removed from the network, since Saturday, according to data from the Ethereum supply tracker,

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