Bored Ape Metaverse Frenzy Raises Millions, Crashes Ethereum
On Saturday, Yug Labs, creator of the popular NFT Bored Apps Yacht Club collection, began selling virtual lands belonging to its much-anticipated Metaverse project, raising nearly $320 million in cryptocurrency in the largest offering of its kind. The demand was so strong that activity related to the event caused a ripple effect across the Ethereum blockchain, disrupting activity and increasing transaction fees.
Holders of ApeCoin tokens who verified their identities jockeyed for buying deeds for 55,000 parcels of virtual land at Otherside, the project’s planned Metaverse game and the latest expansion of the Bored Ape franchise. Predictions that interest will be strong for Plots – Ethereum-based NFTs called Other Deeds – drove the price of Apec last week ahead of the sale.
Based on the $19 price of APcoin on Saturday, the buyer per plot was worth about $5,800, plus transaction costs, or “gas charges” in ether, which skyrocketed after the sale, which took place at 9 a.m. New York time had gone live because there was a huge demand for land grab. , According to data from Etherscan, transaction costs reached $123 million only after launching other NFTs, with each other deed requiring roughly $6,000 in transaction fees to mint, or 2 Ether – or itself. More than the value of the deed.
“Yuga Labs’ virtual land sale triggered one of the biggest spikes in transaction fees on Ethereum,” said Jason Wu, founder of decentralized lending protocol Definer. “I have seen other NFT launches due to higher gas charges, but this is one of the highest.
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Creating tokens or transacting on Ethereum requires token makers or merchants to pay fees to those who order transactions. Transaction fees tend to be higher when the network becomes congested because more fees are required to prioritize transactions. This could affect the Ethereum-based business of apps like Uniswap, effectively slowing down transactions on these other platforms.
Era Labs initially planned to sell in a Dutch auction format in which the price of another deed NFTs would decrease over time to prevent Ethereum from being overcrowded with high transaction fees. However, it later scratched the format and went with another scheme to limit the number of functions purchased per wallet in each wave of sales. The new plan failed to garner the expected rush. Era Labs apologized on Twitter for “turning off the lights on Ethereum” and suggested the possibility of setting up an APcoin blockchain.
We’re sorry to turn off the lights on Ethereum temporarily. It seems fairly obvious that APcoin will need to migrate across its chain to scale properly. We want to encourage the DAO to start thinking in this direction.