February 25, 2024

The rate of Ethereum burning has reached another never-before-seen point after the much-awaited price-pegged trading of tokenized assets in Yuga Labs’ ETH-based Otherside project.

Details of the Transactions

Yuga Labs reportedly sold over 50,000 digital assets and non-fungible tokens (or “Otherdeeds”) yesterday. The far-reaching consumer requests for virtual assets led to a rapid increase in ETH’s gas costs. According to reports, some customers paid in virtual assets worth over $14,000 to complete their transactions due to the heightening of gas prices.

Data analysts say yesterday’s burning activities included about 70,000 ETH, more than three times the last-seen historic price peak of about 20,000 earlier this year. Reports say that the median speed of burning actions last August was 5.81 ETH every 60 seconds.

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However, that number jumped to 9.83 ETH every 60 seconds during the sale of virtual land, worth about 99,000 ETH during the last week. Burning activities have reportedly dipped in speed after the all-time high to about 3.9 ETH every 60 seconds.

Although other trading places and events are also responsible for the new record rate, Otherdeed non-fungible tokens have led the charts on NFT burning activities during the last week at approximately 55,800 ETH. The reported burning actions from Otherdeed assets concurrently stood at about 56% of all such activities.

However, Yuga Labs may no longer dominate ETH as it had been over its digital land sales. That’s because of the currently overwhelming demand from customers interested in the sale on the ETH network. Due to rising customer demands, many customers reportedly lose money over gas payments they made for bounced ETH deals.

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However, Yuga Labs said they would refund customers who lost money over gas payments on bounced ETH deals via their Twitter handle yesterday. Additionally, Yuga Labs says it would seek a means of migrating its chain towards scaling appropriately to meet the demands for the virtual assets.

The price of Yuga Labs’ ApeCoin recently surged beyond 10% after it ceased an auction for the Otherside project and pegged an amount for its offerings. After stopping the auctioning, the company announced it would sell its assets at 305 ApeCoins (APE).

The auctioning plan was for a Dutch-style auction, in which the firm would receive different price bids by members of the public and choose the highest price offered as the item’s price. However, the company reportedly ceased the auction over increasing gas fees and rising customer requests.

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Moreover, the company highlighted the reputation of Otherdeed tokens as one of the largest in its category as another reason why a less-regulated minting process could further increase gas prices.

To evenly distribute the tokens across different customer categories and compensate for the rising gas costs, Yuga Labs permitted intending owners to hold no more than two BTC in a wallet at the beginning of the sale.

Crypto enthusiasts and other interested stakeholders await what the company’s backup decisions would entail.

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