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

After the highly anticipated sale of tokenized land plots to Yuga Labs’ upcoming Metaverse project, the “Otherside,” the Ethereum burning rate (ETH) has risen to an all-time high (ATH).

Yuga Labs, creators of Bored Ape Yacht Club(BAYC), sold 55,000 virtual NFTs dubbed “Otherdeeds” on May 1. Due to the overwhelming demand, Ethereum gas fees rose so much that some users had to pay as much as 5 ETH ($14.270) and 2.6ETH ($7.400), just to get their transactions through.

After the London hard fork implementation or EIP 1559 upgrade last years, a base fee of ETH was burned during every transaction on the network.

Data from Data Always and Glassnode show that May 1 saw nearly 70,000 Ethereum burned. This is almost three times the amount of mid-January’s ATH of around 20,000.

This is roughly the same as the normal burn for the remainder of the day. As other transactions catch up on blockspace, we could easily see this number rise to 70k. It is unlike anything else we have ever seen.
— T. | dataalways.eth (@Data_Always) May 1, 2022

Data from Ultrasound.Money reveals that the average burn rate since EIP 1559 was integrated on August 5, 2021 has been 5.81ETH per minute.

However, this number jumped to 9.83 Ethereum per minute during the Otherdeed NFT Sale, for a total 99,084.65ETH in the past seven days. The burn rate has fallen to 3.9 ETH per hour since then.

Related: Ethereum gas prices drop to their lowest level since August 2021

This figure was not accounted for by other platforms or projects. However, it is notable that Otherdeed NFTs topped the “burn leaderboard”, accounting for approximately 55,817 Ethereum, 56% of all burns over the past seven-day period. This is significantly higher than the 7,152 ETH second-placed OpenSea.

Seven day ETH burn leaderboard: Ultrasound.Money

Yuga Labs may not be able to clog Ethereum again.

Yuga Labs announced plans to create a blockchain and port their BAYC-affiliated ApeCoin.

Yesterday, Yuga Labs posted a tweet stating that it would be refunding gas fees to users and that:

“We are sorry to have turned off the lights for Ethereum for a bit. ApeCoin will have to migrate to its own blockchain in order to scale properly. It is obvious. We encourage the DAO in this direction.

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