ETH gas price surges as Yuga Labs cashes in $300M selling Otherside NFTs

The largest NFT mint was witnessed by the community. However, Ethereum gas prices reached unprecedented heights. Users also experienced failed transactions due blockchain bottlenecks.

Yuga Labs, creator of Bored Ape Yacht club, launched a sale for Otherdeed non-fungible tokens. NFTs represent digital land deeds in their new venture, The Otherside metaverse. Yuga Labs earned $319 million from each piece of land sold at 305 ApeCoins (APE), or almost $5,800 at time of sale. 55,000 NFTs were sold almost immediately.

We are stunned by the amount of demand for the Otherdeed NFT mint. Apes and Mutants: The opening of the 21-day claims period will be delayed until gas prices drop to a reasonable level. We will tweet the moment that the claim is open. https://t.co/iRz64lklbv
— OthersideMeta (@OthersideMeta May 1, 2022

The Otherdeed NFTs were only able to be minted in APE but required ETH to pay gas fees. Yuga Labs devised minting rules that allowed for the sale of NFTs in phases. They also anticipated a temporary rise in gas prices which would reduce the number of users who were minting them.

“This pattern will continue until the NFT supply runs out. It will consist of mint – bum limit – mint-bump limit. This will prevent an apocalyptic war on gas while encouraging wide distribution.

Tracker for Ethereum gas. Source: Etherscan

Redditor u/jeux99 shared the above screenshot, sharing their experiences with high gas prices at the time.

“Why is gas at $450 now?” “I’ve never seen gas prices this high before.”

Another Redditor, u/johnfintech, pointed out that Etherscan data showed that many users paid gas fees ranging from 2.6 ETH ($6500), to 5 ETH ($14000).

Data on the largest contributors to gas prices Source: nansen

Yuga Labs cited some of the problems related to Ether’s launch during NFT.

“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 seems.

Yuga Labs promises to reimburse gas amounts lost by those who have failed to make transactions.

Related: Vitalik Buterin proposes a calldata limit per block in order to reduce ETH gas prices

Due to the growth of blockchain-based ecosystems, including NFTs, Ethereum’s gas fees have been a concern for a while.

Vitalik Buterin, co-founder of Ethereum, proposed a new block-wide limit for the total transaction data in November 2021 to reduce the overall transaction cost gas cost on the ETH network.

Although the community supported the idea, it took more than four months to implement EIP-44888 on Geth’s Ethereum-sidechain testnet. Qi Zhou, a community member, confirmed plans to upgrade the testnet in less than a month on 27 April.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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