According to the “burn leaderboard,” alternative NFTs have been responsible for 56 percent of all ETH burns over the last seven days, or around 55,816 ETH worth of it.
Tokenized land plots in Yuga Labs’ planned Metaverse project the “Otherside” have pushed Ethereum’s burn rate to new all-time highs (ATH).
A virtual land nonfungible token (NFT) branded “Otherdeeds” was auctioned by Yuga Labs, makers of the Bored Ape Yacht Club (BAYC), on Sunday. So many people wanted to get their hands on the tokens that Ethereum gas fees skyrocketed from 2.6 Ether (ETH), or $7,400 at the time of this article; to 5 Ether (ETH), or $13,270.
Following last year’s adoption of the London hard fork, or EIP-1559 upgrade, a fixed amount of ETH is now required for every transaction on the blockchain.
More than three times as much ETH was burnt on Sunday as in mid-January, according to statistics collated by Glassnode and Data Always.
Ultrasound.Money data reveals that the average burn rate has been 5.81 ETH per minute since August 5, 2021, when EIP-1559 was implemented.
This soared to 9.83 ETH per minute for a total of 99,084.65 ETH during the previous seven days in the midst of the Otherdeed NFT sale. As of this writing, the pace of ETH consumption has fallen down to roughly 3.9 per minute.
However, Otherdeed NFTs have been on the “burn leaderboard” for the previous seven days, with about 55,817 ETH, or 56% of all burns during that time period. OpenSea is in the second position with a total of 7,152 ETH.
Yuga Labs plans to develop a blockchain and migrate its BAYC-affiliated ApeCoin to it once the sale demand briefly overwhelms the Ethereum network and many customers lose money on gas costs for unsuccessful ETH transactions.
On Sunday, Yuga Labs said that it will be reimbursing users’ gas expenses. Our apologies for taking a break from Ethereum, and we’ll be back soon.” ApeCoin will need to shift to its own chain in order to grow effectively, it seems obvious. It is our hope that the DAO will consider this suggestion.