Over the course of the weekend, a brand-new cryptocurrency project emerged as the primary user of Ethereum transaction fees, resulting in deflationary issuance.
A new project called XEN Crypto has taken up nearly half of Ethereum’s block space, which is reducing network issuance and driving up gas prices.
DeFi analyst “@0xfoobar” stated, “Users have paid almost $1.8 million in gas fees to interact with the token contract, which has a market cap of $500k.”
Since October 8, the supply of Ethereum has been decreasing.The ultrasonography. The asset is now, at least for the time being, deflationary, as indicated by the Money Dashboard’s current supply growth of -0.41%.
Over 1,300 ETH, or approximately $1.7 million, have been stolen from XEN Crypto in the last 24 hours.
What then is XEN?
The “Fair Crypto Foundation” is behind the XEN project, which was started by Jack Levin, one of the first Google employees who worked on cloud infrastructure. With a token that has no pre-mint, CEX listings, admin keys, or immutable contracts, the ethos aims to empower the individual.
According to “Foobar,” it “copies a couple of HEX-like mechanics, but the important thing is that an APY exists,” indicating that it possesses Ponzi-like characteristics.
XEN, which went live on Oct. 8 and can be claimed, minted, or staked, is based on the fundamentals of cryptocurrency:transparency, self-custody, consensus-based trust, and permissionless value exchange with no counterparty risk.
Since genesis over the weekend, there have been 369,515 active minters, as indicated by the XEN Network dashboard. The token’s APY is 20% and there are 174 million of them available for stake. Minting is free, but it uses gas, and the degen demand for this new token is driving up prices.
Levin made a comment about the impact on Ethereum, stating that it was positive, but perhaps not for those who must now pay more for their transactions.
XEN Price Reaction
The token price soared to $1 shortly after genesis, but Coinmarketcap, which has just listed it, reports that it has retreated to $0.0032.
At the moment, it can only be traded on Uniswap, which has very little liquidity and already has commentary suggesting that it might be a scam. When it comes to cryptocurrency, only time will tell if the most recent hot cake turns out to be just another scam.