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Ethereum’s Gas Fees Spiked On Yuga Labs NFT Launch

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VOC, News, Crypto, BAYC, ApeCoin

On Sunday, Ethereum’s gas fee saw a massive spike following the news of Yuga Labs selling out Otherdeed NFT which resulted in Ethereum users losing their transactions due to a ‘blockchain bottleneck.’ Many ETH users paid fees as high as 2.7 ETH or 7,400 to 5 ETH or 14,270 just for transaction procedures.

Ethereum (ETH) gas prices rose to unprecedented levels, in addition to users experiencing failed transactions due to blockchain bottlenecks.

Yuga labs, the firm behind the famous NFT project Bored Ape Yacht, made gains of $319 million after selling 55,00 blocks of virtual land and the yet-to-launch non-fungible token known as “Otherdeed” for 305 Apecoin. At the time of the sale, the NFT’s price range was approximately $5,800. 

According to a report by Glassnode 70,000 Ethereum was at a loss on Sunday trading, resulting in a more significant loss after January 20,000 Ethereum burn. On the report, it stated:

“This is approximating the rest of the day as normal burn. We could easily see the number go above 70K as other transactions need to catch up on missed block space. It’s just incomparable to anything we’ve seen before.”

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Amid the NFT metaverse “Otherdeed” sale, Ethereum’s gas fee rose to 9.83 Ethereum per minute for seven days. However, the fees have rebounded back to 3.9 eths per minute.

Nevertheless, while the scenario caused significant damage to Ethereum users, Yuga Labs have come to terms with the situation. The firm has even apologized for the loss and promised to make a refund of a gas fee to all Ethereum users whose transaction failed at the time.

Yuga’s representatives also spoke on Twitter concerning their plans to create a separate chain for ApeCoin. They stated on Twitter:

 “We’re sorry for turning off the light on Ethereum for a while. It seems abundantly clear that AapeCoin 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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