XEN crypto, an ERC-20 token launched in October, accounts for about 15% of all Ethereum gas fees.
XEN (a pointless scam token) is currently ~15% of Ethereum gas spend.
– 4x more than all L2s.
– 20% above OpenSea.
– Not far from Uniswap v3.
Right now, ETH net issuance is virtually zero. If on-chain activity ever comes back, ETH deflation will be bonkers. pic.twitter.com/PVqXgRTeUR
— mhonkasalo.lens (@mhonkasalo) December 11, 2022
A recent chart shared on Twitter by Mhonkasalo showed that the XEN token gas as of December 11 is four-times that of all Layer-2 networks and 20% more than that of OpenSea, the largest NFT marketplace.
With the sudden surge in gas spending on the network, Ethereum net issuance reached zero on December 11, which means that the number of tokens issued and tokens burned are at the same level.
Given that the level of activity on the Ethereum blockchain is currently low, an increase in network activity similar to the bull run or DeFi summer would make ETH supply deflationary.
Interestingly, the first time ETH supply became deflationary was in October, which was due to XEN’s launch. At the time, XEN minting accounted for 40% of all Ethereum transactions and led to ETH becoming deflationary for 24 hours.
Meanwhile, ultrasoundmoney data shows that ETH burn total in 24 hours is 1,672.94 ETH while the 7-day burn is 12,806.70 ETH. In that period, XEN Crypto is responsible for 209.28 ETH burn, the fourth highest after new contracts, Uniswap V2, and OpenSea.
Presently, ETH’s burn rate is 1.27 ETH/min with issuance offset sitting at 1.07.
The sudden rise in XEN crypto mints is likely in commemoration of 60 days since its launch.
Meanwhile, the token’s supply is now 1181.1 billion. Available data also shows that its value is down 96.5% since its launch, currently trading for $0.00000438.