Yuga Labs NFTs Trigger Gas Wars on Ethereum

Share This Post

Yuga Labs NFTs triggered gas fees to spike on the Ethereum blockchain

The owners of Bored Ape Yacht Club, Yuga Labs, dropped its Otherdeed NFTs on Saturday, clogging the Ethereum blockchain and causing gas prices to skyrocket.

The NFTs open up various rewards and benefits in Yuga Labs’ upcoming metaverse, Otherside, which consists of 200,000 virtual plots for sale that only Otherdeed NFT holders can claim.

Almost immediately, the digital assets sold out, raising approximately $320 million in cryptocurrency. 

The high demand caused transaction fees on the Ethereum blockchain to soar, with some users paying over 2 ETH to ensure the transactions went through, according to statistics provided by Etherscan. In total, Otherdeed buyers spent over $179 million on gas fees.

Following this, the blockchain technology company took to Twitter to apologize for “turning off the lights on Ethereum”:

The NFTs were originally planned to sell via a Dutch Auction – to prevent the price of Ethereum from being congested with high transaction fees.

However, after claiming Dutch Auctions to be “actually bullshit”, Yuga Labs changed its market structure by capping the number of NFTs purchased by each wallet.

Subsequently, Yuga Labs failed to fend off the predicted congestion issues, leading Otherdeed collectors to voice concerns on the company’s Twitter feed:

55,000 Otherdeed NFTs were sold in the auction, alongside 45,000 being issued to Bored Ape and Mutant Ape holders.

MORE ABOUT OTHERSIDE

Yuga Labs partnered with the creator of SandBox, Animoca Brands, to develop the unique metaverse experience, Otherside.

Each plot of land on the virtual world consists of attributes, including natural resources, artifacts and characters – all of which only Otherdeed holders can purchase and are essential parts of the game.

Rather than solely focusing on ape NFTs, the space also features other PFP avatars including CryptoPunks, Meebits, Cool Cat and World of Women.

Subscribe to the NFT Lately newsletter to receive news covering the latest NFT drops, releases, reviews and more.

spot_img

Related Posts

World Cup Legend Sir Geoff Hurst Releases NFTs For Alzheimer’s Research

The debut NFT collection, 'The Everlasting Memory' by World...

Stripe Launches Fiat-to-Crypto Payment Service for Web3 Companies

Stripe, a payment processing business, unveiled a "fiat-to-crypto on-ramp"...

Top NFT Analytics Tools to Use in 2023

Non-fungible tokens (NFTs) are gaining popularity as a way...

What is USDTe? A Full Guide to Avalanche Tether

USDTe is a stablecoin on the Avalanche blockchain that...

Did SBF Doom NFTs? FTX Aftermath – What’s Next

Many Web3 companies view the FTX aftermath as a...

Top NFT Podcasts for 2023 | Best Listens

For some, a good podcast can be highly entertaining...

Related Posts

Mattel Launches an NFT Marketplace With Hot Wheels Collection

Mattel announced a new NFT marketplace as it expanded...

Porsche Makes Its Web3 Debut With Its First NFT Collection

The luxury sports car manufacturer announced its official entry...

Yuga Labs’ Leaked Financials Show Insane Profits

Leaked data shows that Yuga Labs has sold more...

What You Need to Know About This NFT Market Crash

NFTs have already changed the world. Now it's time...

What is USDTe? A Full Guide to Avalanche Tether

USDTe is a stablecoin on the Avalanche blockchain that...

Binance Football Fever 2022 Offers Fans $1 Million in Rewards

Binance brings "Binance Football Fever 2022," a one-of-a-kind football...