Ethereum Gas Fees Spike to New Highs on Latest NFT Hype

Yuga Labs, the company behind the hugely popular Bored Ape Yacht Club NFT collection, released a new land title collection called Otherdeed for its Otherside Metaverse over the weekend. The NFTs could be created with the project’s APE coin, but the gas fees had to be paid in ETH. According to Etherscan, due to high demand, the average cost of an Ethereum transaction soared to above $400. BitInfoCharts, a network charge tracker, said that average fees reached an all-time high of over $200 on May 1. Yuga Labs apologized for the Ethereum network outage and offered an alternative, “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 chain to scale properly.” TLDR: Yuga had bad devs that couldn’t code a contract properly. This cost people $100m in gas. Then a VC wrote their apology blaming Ethereum and announcing a new ETH killer. — James Spediacci (@JamesSpediacci) May 1, 2022 According to Ultrasound, the current ETH burn rate is roughly 6,000 per day, or around $17 million. Money tracking software. Issuance has reverted to an inflationary state, but after ‘the Merge’ ushers in proof-of-stake and the conclusion of the mining process, it is expected to revert to a deflationary state. The good news is that Ethereum transaction costs have soon returned to normal, with Etherscan reporting an average of $3 per transaction. Another plus for the network is tha...