BAYC team raised $285 million and en route clogged Ethereum network due to virtual land rush for metaverse project Otherside. So let’s read more in our latest cryptocurrency news today.
After a long wait, the BAYC team, Yuga Labs, held its long-awaited digital land sale over the weekend, which marked a public debut for the Otherside Metaverse project and while the resulting land spree raised approximately $285 million for the company , it created some of the largest gas fees in the history of the ETH network with investors spending over $176 million on fees over the past day. Otherside is Yuga Labs company’s biggest launch, and during last night’s sale, retailers snapped up a limited supply of 55,000 Otherdeeds NFTs, which represented the titles of virtual country lots in 3D social space.
I just paid $14,000 in gasoline to mint 4 Otherdeeds for Otherside. I’m going to vomit now. @BoredApeYC
— Hustler (@0xHustler) May 1, 2022
They cost around $7000 each and were available in APE cryptocurrency. In other markets like OpenSea, the cheapest price for the Otherdeed was around 7 ETH. The night was a big win for the company raising $450 million from venture capital giant Andreessen Horowitz, but now the BAY team has raised $285 million and issued a note:
“This was by far the largest NFT coin in history and yet the gas used during the mint shows that demand has far exceeded any wildest expectations. We’re sorry to have turned off the lights on Ethereum for a while.”
The average ETH transaction fee scales with the overall network congestion. So when the traders are fighting for the tokens at the same time, the prices go up and it is a phenomenon known as the gas war where users compete to process their transaction at the top of the miners’ queue. According to Dune Analytics calculation data, average gas prices hovered around 800 Gwei with peaks in the 6000 and 7000 range, and during those times a simple transaction could cost more than $3000.
The best thing about crypto is that it eliminates the fees we have to pay to bank intermediaries pic.twitter.com/KYRPJoJXvq
— Molly White (@molly0xFFF) May 1, 2022
The expensive evening questioned Ethereum’s viability as a host for larger NFTs, while Yuga Labs floated the idea of building its own blockchain:
“It seems perfectly clear that ApeCoin needs to migrate to its own chain in order to properly scale. We would like to encourage the DAO to think in this direction.”
The company went to great lengths to say that they don’t control the ApeCOIN DAO, but they might be able to donate some of last night’s money to the cause.
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