The Bored Ape Yacht Club creator, Yuga Labs, launched an Otherdeed NFT sale representing the digital land on the Otherside metaverse. With each piece priced at 305 ApeCoin (APE), Yuga Labs made around $319 million, instantly selling 55,000 NFTs.
The Otherside NFT Launch
Furthermore, the Otherside mint was only available to those pre-registered before April 1, including completing KYC requirements.
While Otherdeed non-fungible tokens were only mintable using APE, it also required ETH for gas fees. Moreover, Yuga Labs envisioned the NFT sale in phases, anticipating a monetary rise in gas prices, thus decelerating the number of users minting the NFTs.
According to a Yuga Labs tweet, "This pattern of mint → bump limit → mint → bump limit will continue until NFT supply is exhausted. This approach is expected to prevent an apocalyptic gas war, while also encouraging as broad a distribution as possible."
Initially, the Otherside NFTs were intended to be sold in a Dutch auction-style. However, the plan was ultimately abandoned to avoid "a gas war of historic proportions" during the Otherside mint.
Otherside NFT Launch Impacts ApeCoin Price
BAYC made the Otherdeed NFTs purchasable only through ApeCoin (APE), launched in March by the ApeCoin DAO. Thus, the anticipation of the Otherside metaverse also lifted the ApeCoin by as much as 50% in the past week.
However, the ApeCoin slumped in the wake of the sale, drawing down to under $17. As a result, it erased more than $23 million from Yuga Labs' earnings within the first few hours after the drop.
Otherdeed for Otherside NFT Sales Raises Ethereum Gas Fees
While the Bored Ape community witnessed the largest NFT mint yet, it spiked the Ethereum gas price to unpredictable levels. In addition to the unprecedented gas price, users also experienced failed transactions due to blockchain bottlenecks.
Furthermore, the Otherside NFT mint consumed over $177 million in gas fees. Also, there was such high demand for the NFTs that even Etherscan crashed at one point.
For those who lost their ETH gas fees in failed transactions, Yuga Labs has promised to refund them the lost amount. "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 own chain in order to properly scale," said the team.
Ethereum's infamous gas fees have been a long-standing concern for the community. Owing to the influx of ecosystems hosted by the blockchain, it seems to get worse by the day.
Meanwhile, NFTs became an extremely lucrative asset class in 2021, with prices ranging between $100 to millions of dollars. But since the start of the year, digital assets have slumped amid a hawkish Federal Reserve and Russia's invasion of Ukraine.
According to data from NonFungible.com, weekly NFT sales have plummeted by more than half from its early January peak of $1 billion. However, weekly NFT sales have jumped 85% to $456 million from $246 million in the prior week.