It is reported that the NFT land sale on Otherside metaverse resulted in the burning of almost 55k ETH worth $160 million over the past week. The creators of the popular NFT collection Bored Ape Yacht Club (BAYC) resumed the NFT land sale on their newly launched metaverse project ‘Otherside’ on April 30, 2022.
According to Yuga Labs, Otherside metaverse offers 100,000 ‘deeds’ for virtual land as NFTs. The land NFTs could be minted using the native cryptocurrency ApeCoin (APE). The Yuga Labs has given a new title to the Otherside land collection known as ‘Otherdeed’.
As a consequence, NFTs are the major cause of the burning of 70% of all ETH in the past week. The NFT marketplace OpenSea also recognized a massive surge in Ethereum transactions that resulted in gas fees of over $400. According to the fee tracking platforms such as EtherScan, and BitInfoCharts, the averagely all-time high gas fee was $200 on May 1.
Some NFT enthusiasts even paid $3,600 as gas fees during the purchase of a Goat Soup #3672 NFT costing only $275 on the OpenSea platform. Not only this, the Otherside land sale disrupted people registering .eth domain names on the ENS platform. The gas fees reportedly went as high as $4,666 for a single .eth domain registration costing $5 only.
Also, during the first hour of the sale of ‘Otherdeed’, it was noticed that approximately $100 million were wasted as ETH gas fees on the Ethereum network. Many people lost thousands of dollars yesterday as a huge number of transactions could not be processed. The network congestion on the Ethereum network and the sudden surge in transactions resulted in an unusual financial loss.
Why gas fees is required to pay?
For every transaction on the blockchain, the Ethereum miners are compensated with some amount of charges known as ‘gas fees’. These miners verify the transactions and add the block to the existing blockchain.
Gas fees do not depend on the size of a transaction happening. Rather, it largely focuses on how many transactions are happening on the Ethereum network at a given time. For instance, at a given time, there are thousand of transactions to be processed by 10 miners then the gas fees automatically rise. All 10 miners have to work constantly to verify the transaction from their end in that given time.
Also, the users might have to pay a considerably higher amount of gas fees than the transactional value during busy hours. The higher the gas fees, the fewer time miners take to process the block. Therefore, the system ensures that your transactional block gets in front of the queue to get processed first.
Be informed that the user’s Ethereum transaction might fail and there can be a loss of funds if they do not pay gas fees.
According to ultrasound.money the Otherdeed stood first on the chart for burning as much as 55k ETH in a single day. The second rank was occupied by Opensea NFT marketplace with 3,600 ETH. However, at the press time the average gas fees is ranging from $25 to $40 on various platforms.