The Ethereum network, which has seen a drastic decline in its gas fees since Q3 of 2021, has seen a new surge, taking fees to a ridiculous new high.
Yuga Labs Sells Over $300 Million in NFTs
Yuga Labs, the Bored Ape Yacht Club (BAYC) NFT collection creator, launched the sale of Otherdeeds, which represent digital land deeds on their new venture, the Otherside metaverse.
Almost immediately after the much-anticipated Otherdeeds sale was launched, Yuga Labs sold 55,000 NFTs worth over $319 million. Unfortunately, while NFTs could be minted with ApeCoin, they required ETH to pay the gas fees.
Ethereum Gas Fees Hit Astronomical Highs
As the sale intensified on May 1, Ethereum gas fees skyrocketed to new highs. According to Ethereum Gas Tracker, users paid between $3,800 and up to $6,500 (some reported $14,000) to complete transactions on the Ethereum network.
Ethereum gas tracker. Source: Etherscan
Otherdeed was the biggest gas contributor on Ethereum, growing by more than 42,000% on May 1.
As of 09:43 UTC, the gas price of Ethereum has dropped down to as low as $2.63 per transaction.
Ethereum gas tracker. Source: Etherscan
On The Flipside
- More than 71,700 ETH, or over $200 million, was burned at peak demand, pushing ETH issuance into the deflationary territory by 18%.
Why You Should Care
The persisting issue of gas fees on the Ethereum network is expected to be permanently fixed by the upcoming Merge.