Ethereum Network Experiences Deflation for First Time Since The Merge Update

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Ethereum’s supply has decreased by 0.13% over the past seven days. Deflation in the network has been recorded for the first time since the transition of the blockchain of the second largest crypto by market cap to the Proof-of-Stake consensus algorithm.

The issue turned negative amid the launch of XEN Crypto. Over the past seven days, the project has burned 3,780.7 ETH or about $4.8 million. According to this indicator, it is more than three times ahead of Uniswap v3 (1250.9 ETH).

Users have pointed to signs of a pyramid scheme in a project whose capitalization does not exceed $0.5 million.

EthHub co-founder Anthony Sassano has said:

“In the new scheme Ponzi, it is possible to issue a token for free. Users do this by pushing up the price of gas. I don’t care what the project is, but it led to the deflation of Ethereum. Now that we’ve passed the 15.3 gwei barrier, you’re seeing a reduction in supply.”