Ethereum burning hits new high on Yuga Labs NFT hype

Ethereum (ETH) burn rate has surged to a new all-time high (ATH) following the much-anticipated sale of tokenized lots in Yuga Labs upcoming Metaverse project “Otherside.”

Yuga Labs, the creators of Bored Ape Yacht Club (BAYC), sold 55,000 virtual land NFTs called “Otherdeeds” on May 1st. The overwhelming demand for the tokens caused Ethereum gas fees to soar that a handful of users paid as much as 2.6 ETH ($7,400) to 5 ETH ($14,270) just to get their transactions through.

Following the implementation of the London hard fork or EIP 1559 upgrade last year, a base fee of ETH is burned on every transaction on the network.

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

Ultrasound.Money data shows that since the integration of EIP 1559 on August 5, 2021, the average burn rate is 5.81 ETH per minute.

However, amid the Otherdeed NFT sale, this number surged to 9.83 ETH per minute for a total of 99,084.65 ETH over the past seven days. Since then, the burn rate has dropped back down to around 3.9 ETH per minute.

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

While other platforms and projects were responsible for this number, it is notable that Otherdeed NFTs topped the Burn Leaderboard for the past seven days with approximately 55,817 ETH, or 56% of all burns during that period. This number is well ahead of second-place OpenSea with 7,152 ETH.

Seven-Day ETH Burn Rankings: Ultrasound.Money

This could be the last time Yuga Labs clogs Ethereum

As demand for the sale temporarily overwhelms the Ethereum network and many users lose money on gas fees for failed ETH transactions, Yuga Labs has outlined intentions to build a blockchain and port its BAYC-connected ApeCoin.

In a Twitter post Office Yesterday, Yuga Labs announced that it will refund the user’s gas fees, noting that:

“We’re sorry to have turned off the lights on Ethereum for a while. It seems perfectly clear that ApeCoin needs to migrate to its own chain in order to properly scale. We would like to encourage the DAO to think in this direction.”