Yuga Labs, the web3 company behind the Bored Ape Yacht Club, disrupted the entire Ethereum blockchain as a flood of users rushed to purchase NFTs representing virtual plots of land in its upcoming metaverse project, Otherside. A total of 55,000 Otherdeeds sold at a flat price of 305 ApeCoin, or around $5,800 at the time of purchase (via CoinTelegraph), raising about $320 million in what was considered the “largest NFT mint in history.”
Otherdeeds are minted in BAYC’s native ApeCoin, but still require Ethereum for gas fees. A gas fee is the cost associated with a transaction on the Ethereum blockchain. Fees typically increase as the network gets more congested, as it becomes more work to process a transaction.
Such a large volume of transactions during the Otherdeed mint caused gas fees to soar. As noted by CoinTelegraph, Reddit user u/johnfintech pointed out that some buyers shelled out anywhere from 2.6 ETH ($6,500) to 5 ETH ($14,000) in gas fees alone — more than the cost of an Otherdeed NFT (and in some cases, more than twice the cost). By the time the virtual land deeds sold out, buyers paid a total of about $123 million just to execute their transactions on the Ethereum blockchain (via Bloomberg).