Ethereum burning surges to new ATH after Otherside NFT sale

After the highly anticipated sale of NFT by the trending Metaverse, Otherside, the burning rate of Ethereum has risen to new ATH levels.
After the highly anticipated sale of NFT by the trending Metaverse, Otherside, the burning rate of Ethereum has risen to new ATH levels.

After the highly anticipated sale of tokenized land plots in Yuga Labs’ trending Metaverse, “Otherside,” the burning rate of Ethereum has risen to new ATH levels. The news has spread like wildfire on social media platforms like Twitter.

On Sunday, Yuga Labs, the creator of the famous BAYC NFT collection, sold 55,000 “Otherdeeds” virtual land NFTs. Due to the huge demand for the tokens, Ethereum gas fees skyrocketed, with some users paying as much as 2.6 Ether (ETH) to 5 ETH, merely to complete their transactions.

Following the deployment of the London hard fork, or EIP-1559 upgrade, last year, a base charge of ETH is burned on each transaction on the network.

On Sunday, approximately 70,000 Ethereum was burned, according to data compiled by Glassnode and Data Always, which is more than 300% of its previous ATH of around 20,000 in mid-January.

According to the data from another platform, Ultrasound.Money, the average burn rate has been 5.81 ETH per minute since the integration of EIP-1559 in August last year.

However, during the Otherdeed NFT auction, that number soared to 9.83 ETH per minute, resulting in a total of 99,084.65 ETH in the last seven days. The burn rate has fallen down to roughly 3.9 ETH per minute since then.

Yuga Labs accounts for 56% of all Ethereum burns this week

While other platforms and initiatives contributed to this total, Otherdeed NFTs topped the “burn leaderboard” over the last seven days, accounting for around 55,817 ETH, or 56 percent of all burns. This puts it well ahead of OpenSea, which came in second with 7,152 ETH.

The NFT collection resulted in many customers losing money on gas fees for unsuccessful ETH transactions. Yuga Labs said on Twitter on Sunday that it will reimburse users’ gas fees. It stated:

“We’re sorry for turning off the lights on Ethereum for a while. It seems abundantly clear that ApeCoin will need to migrate to its own chain in order to scale properly. We’d like to encourage the DAO to start thinking in this direction.”

As per a report by TheCoinRise, the Ethereum gas fees surged to insane levels with NFT and DeFi craze in September last year.