Ethereum (ETH), which has moved to a new network structure with the Merge update, is narrowing its coin supply with the increase in gas fees.
The new project XEN Crypto, which appeared on the ETH network, caused high gas fees due to the heavy use 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
ETH, which could not meet the expectations with the Merge update, started to decrease the supply 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. The airdrop launch of an Ethereum-based project has increased gas fees as a result of the intense interest. 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 use, it will be able to burn an average of 1.25 million ETH per year.
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