Ethereum burning spikes to new high on Yuga Labs’ NFT hype

The Ethereum (ETH) burn rate has soared to new all-time highs (ATH) levels following the much-anticipated sale of tokenized land in Yuga Labs’ upcoming Metaverse project, the “Other Side.”

Yuga Labs, the makers of the Bored Ape Yacht Club (BAYC) sold 55,000 virtual land NFTs dubbed “Otherdeeds” on May 1. The overwhelming demand for tokens caused Ethereum gas fees to skyrocket so much that a handful of users paid as much as 2.6 ETH ($7,400) to 5 ETH ($14,270) just to transact.

A base fee of ETH is burned during every transaction on the network following the implementation of the London hard fork or the EIP 1559 update last year.

According to data compiled by Glassnode and Data Always, nearly 70,000 ETH was burned on May 1, more than triple the previous ATH of around 20,000 in mid-January.

Data from Ultrasound.Money shows that since the integration of EIP 1559 on August 5, 2021, the average consumption rate has been 5.81 ETH per minute.

However, amid the Otherdeed NFT sale, that figure jumped to 9.83 ETH per minute for a total of 99,084.65 ETH in the last seven days. Since then, the consumption rate has dropped to around 3.9 ETH per minute.

Related: Ethereum gas fees drop to lowest levels since August 2021

While other platforms and projects accounted for this figure, it is notable that Otherdeed NFTs top the “burn leaderboard” in the last seven days with roughly 55,817 ETH or 56% of all burns during that period. This figure is significantly ahead of OpenSea, which is in second place, with 7,152 ETH.

Seven-Day ETH Burn Leaderboard: Ultrasound.Money

This may be the last time Yuga Labs clogs Ethereum

With demand for the sale temporarily overwhelming the Ethereum network, and many users losing funds in gas fees from failed ETH transactions, Yuga Labs has outlined intentions to build a blockchain and transfer its affiliated ApeCoin to BAYC.

on a twitter mail Yesterday, Yuga Labs stated that it will reimburse users’ gas fees, noting that:

“We are sorry to have turned off the lights on Ethereum for a while. It seems very clear that ApeCoin will need to migrate to its own chain to scale properly. We would like to encourage the DAO to start thinking in this direction.”