It has taken the NFT world by storm and has generated a lot of reactions, both positive and negative. Bored Apes Yacht Club, somehow caused the Ethereum network to crash yesterday. It all started when Yuga Labs, the developer of the NFT collection, made a sale on Saturday on the virtual lots in the expected metaverse project ‘Otherside’.

The discount in the metaverse project of today’s largest and most valuable NFT collection, which is expected by millions, naturally attracted a lot of attention. with discount total revenue of $320 million This intensity was felt throughout the Ethereum blockchain. While trades on Ethereum slowed, transaction costs rose at an unprecedented level.

Transaction costs exceed the value of NFT

Every virtual lot sold at a discount drove investors in $5,800 worth of ApeCoin. In addition, investors also paid the transaction fee and the gas fee of Ethereum. But because of the density, these extra costs started to explode into incredibly high prices. So much so that the payment for striking each parcel The transaction costs amounted to 2 Ethereums (about $6,000). So the transaction costs have become more valuable than the virtual land itself.

This increase in transaction fees also impacted the Ethereum network in general, and even people not involved in this company started getting astronomical transaction fees. The transaction costs in question, Biggest Leap in Ethereum History went down in history. So why did this jump take place? Why have Ethereum transaction fees increased?

Why and How Are Ethereum Transaction Fees Rising?

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 for transactions to be processed on the network. While this fee is usually in small amounts, The higher the network density, the higher the compensation.† The aforementioned NFT campaign was an example of this and with increasing demand, the transaction fee that had to be paid for executing 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 executed due to increased fees.

On the other hand, a total of 55,000 Otherdeed sales were made in the said campaign, 45,000 of which were reserved for Bored Ape Yacht Club and Mutant Ape NFT owners. During the campaign The sum of transaction fees paid for mining NFT alone was $123 million…