Ethereum Turns Deflationary as XEN Crypto Degens  Emerge


By Hannah Parker 

Decentralised and open-source, Ethereum is a blockchain that supports smart contracts. The platform’s native cryptocurrency is Ethereum. Ether’s market valuation is second only to that of Bitcoin among cryptocurrencies. 2013 saw the creation of Ethereum by programmer Vitalik Buterin. 

Ethereum started operating on two parallel blockchains in December 2020, one using the previous approach to validate transactions and the other using proof-of-stake to allow developers to experiment with and enhance the protocol. Through this merging, the two blockchains are combined into a single one utilising a proof-of-stake validation technique as held by Bitcode Method.

After the integration, the network will advance thanks to stakeholder wealth rather than processing capacity. The most prominent owners, including custodians, may have disproportionate influence in the Ethereum ecosystem. As a result, this results in departing from the decentralised ethos that many cryptocurrency investors hold value to.

Ethereum is one of the most widely used blockchains and cryptocurrencies currently available, coming in second only to Bitcoin regarding market share. In 2022, Ethereum is expanding in acceptance, and the value of its native coin, Ether (ETH), is rising. 

The first network to support smart contracts was Ethereum. Smart contracts have become considerably simpler to define ownership and control transferability of NFTs. Additionally, Ethereum developed the ERC-721 token standard specifically for the production of NFTs.

Even before the Merge, ETH may cause prices to recover to levels more closely resembling the all-time high it reached in late 2021. Experts already rank Ethereum alongside Bitcoin as one of the safest crypto investments. Since hitting an all-time high in November 2021, the price of Ethereum has decreased by more than 35%, and trading activity has slowed.

Ethereum Turns Deflationary as XEN Crypto Degens Dive In

A brand-new cryptocurrency project overtook all other users of Ethereum transaction fees, deflating the currency’s supply.

A new XEN Crypto project has nearly taken half of Ethereum’s block space, resulting in a decrease in network issuance and an increase in gas pricing.

As a result, beginning October 8 in 2022, the supply of Ethereum has started decreasing. According to the Ultrasound Money dashboard, the asset has turned deflationary, at least temporarily, with a supply downturn of -0.41%.

More than 1,300 ETH, totalling almost $1.7 million, have been burned in due to XEN Crypto. This resulted in many taking to Twitter, where they began discussing the possibility and effects of this.

What is XEN?

On the Ethereum blockchain, XEN is an ERC-20 token. It is founded on the fundamental tenets of cryptography, including decentralisation, self-custody, transparency, and consensus to build confidence. The XEN smart contract is open source, immutable, and devoid of admin keys.

Jack Levin, one of the first Google employees to work on cloud infrastructure, supports the “Fair Crypto Foundation,” which launched the XEN project. With a token that has a zero supply at launch and has no pre-mint, CEX listings, admin keys, or immutable contracts, Ethos seeks to empower the individual.

Twitter user, Foobar,  mentioned that it has specific Ponzi-like characteristics, which “copies a couple of HEX-like mechanics, but the main thing is that an APY exists.”

The first principles of cryptocurrency are self-custody, transparency, trust through consensus, and permissionless value exchange without counterparty risk. XEN, which entered the market in early October 2022, can be claimed, minted, or staked.

Since genesis, there have been 369,515 active minters, according to the XEN Network dashboard. There are 174 million tokens in circulation, and staking them will yield a 20% annual yield. Although no cost is associated with minting, gas prices are rising due to the increased demand for this new currency.

XEN Price Reaction

The token’s price spiked to $1 shortly after its inception, but Coinmarketcap reports that it has since dropped significantly.

At the time, it could only be traded on Uniswap, where there is very little liquidity, and the discussion has already raised concerns that it might be a fraud. Only time will tell if the newest cryptocurrency ends up being just another scam.

Although there may be changes along the way, analysts are still hopeful that ETH will rebound in the future based on the price history, movements, and market conditions in 2022. It’s crucial to remember how unpredictable the crypto asset market is.

Although cryptocurrencies may be the hot new opportunity of the day, significant risks are associated. When making investing decisions, proceed with prudence, conduct research, consider your financial objectives, and, most importantly, don’t flip a coin.

If you’re considering investing in cryptocurrency, the rule of thumb is to invest money you are willing to lose continually. Cryptocurrency always accompanies new opportunities; we have seen many become millionaires from an investment in Bitcoin over a decade ago — the possibilities with digital currencies are not limited.

Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article. 

Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.


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