Ethereum, which has moved to a new network structure with the Merge update ( ETH), is shrinking the coin supply with the increase in gas fees.
New project on the ETH network XEN Crypto , resulting in high gas fees due to heavy usage of the network. With the increase in gas fees, the supply of the popular coin has decreased. As a result of the transactions made in the last 24 hours, the ETH supply managed to become deflationary.
Ethereum Supply Decreases
Unable to meet expectations with the Merge update ETH , the supply has started to decrease with the recent network activity. The Ethereum network has entered the longest period of deflation since Merge.
The increase in gas fees, which represent the transaction fee in ETH network activities, came to the fore as the factor that increased the deflation rate. An Ethereum-based project airdrop As a result of the intense interest, gas prices increased. Cryptocurrency investors performed intensive transactions on the network to get the XEN token for free. The density of transactions on the network caused an instant gas fee increase.
Interest in the XEC token has managed to burn around 1,470 ETH in the last 24 hours. With the effect of the new project’s airdrop, there was a decrease in the ETH supply. If the Ethereum network experiences active usage, on average per year 1.25 millionwill be able to burn ETH.
