Bored Apes Yacht Club, which swept the NFT world and gathered many positive and negative views, somehow caused the collapse of the Ethereum network yesterday. It all started when Yuga Labs, the developer of the NFT collection, made a sale on the virtual plots in its anticipated metaverse project ‘Otherside’ on Saturday.
The discount in the metaverse project of today’s largest and most valuable NFT collection, which is expected by millions of people, naturally attracted great attention. With the discount, a total of $ 320 million was sold, while this intensity was felt throughout the Ethereum blockchain. While transactions slowed down on Ethereum, transaction fees increased at an unprecedented level.
Transaction fee exceeds NFT
Each virtual plot sold at a discount exploded to $5,800 worth of ApeCoin to investors. Apart from that, investors also paid the transaction fee and the gas fee of Ethereum. But due to the density, these additional fees began to explode into incredibly high prices. So much so that the transaction fee paid for minting each plot reached up to 2 Ethereum (about $ 6,000). So the transaction fee has become more valuable than the virtual land itself.
This increase in transaction fees also affected the Ethereum network in general, and even people who are not involved in this business began to encounter astronomical transaction fees. The transaction fee in question went down in history as the biggest jump in Ethereum history. So why did this leap occur? Why has the Ethereum transaction fee increased?
Why and how does the Ethereum transaction fee increase?
As a person who makes a transaction to mine a token or perform a transaction on the Ethereum network, you have to pay a certain amount of fees for transactions to be processed on the network. While this fee is usually in small amounts, the fee increases as the density in the network increases. The aforementioned NFT campaign was an example of this, and with the increasing demand, the transaction fee that had to be paid for the execution of the transactions skyrocketed. As a result of the flight in question, all applications (such as Uniswap) serving on the Ethereum network were adversely affected, transactions were disrupted, and no transactions were made due to increased fees.
On the other hand, a total of 55,000 Otherdeed sales were made in the said campaign, 45 thousand of which were reserved for Bored Ape Yacht Club and Mutant Ape NFT owners. The sum of the transaction fees paid for mining only NFT during the campaign period was $123 million…