The Ether burning rates have now reached a new all-time high level. This comes amid the launch of Yuga Labs metaverse project known as “Otherside”. Yuga Labs is the team behind the Bored Ape Yacht Club (BAYC) non-fungible tokens.
BAYC’s Otherside project spikes ETH burning
On Sunday, Yuga Labs sold 55,000 pieces of virtual land NFTs named “Otherdeeds.” These NFTs recorded increased demand, resulting in increased Ethereum gas fees. Some users were forced to pay gas fees of 2.6 Ether (ETH), valued at around $7400. The gas fees went as high as 5 ETH.
The Ethereum network requires that a part of ETH is burned with every transaction. This policy was introduced after the EIP-1559 London hard fork upgrade in 2021. Data from Glassnode and Data Always shows that around 70,000 ETH was burned during the Yuga Labs virtual land NFT sale.
Since the EIP-1559 upgrade was implemented in August last year, the burning rate has been 5.81 ETH per minute. This rate has increased to 9.83 ETH per minute during the past week. This time coincides with the sale of the virtual land NFTs by Yuga Labs.
Other projects and protocols running on the Ethereum blockchain have also accounted for the ETH burning fees. However, Otherdeed NFTs are at the top of the chart during the past seven days, and they have accounted for 55,817 ETH, equivalent to 56% of the entire ETH burned during the period. OpenSea ranks second in the leading projects promoting ETH burns. However, it accounts for only 7,152 of the burned ETH during the past week.
Yuga Labs plans to launch its own blockchain
The demand for the sale of virtual land NFTs released by Yuga Labs has overwhelmed the Ethereum network. Many users on the network have lost a lot of funds following the failed Ether transactions. Yuga Labs has announced plans to create its own blockchain where it will transfer all its projects to ensure such congestions do not happen again.
Yuga Labs published a Twitter post on Sunday saying that it would refund the gas fees that users spent over failed transactions. “We’re sorry for turning off the lights on Ethereum for a while. It seems abundantly clear that ApeCoin will need to migrate to its own chain in order to properly scale. We’d like to encourage the DAO to start thinking in this direction.”
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