Bored Apes Metaverse Project ‘Otherside’ Tops $561 Million in 24 Hours

May 03, 2022, 11:15 AM AEST - 2 weeks ago

Yuga Labs, creators of the Bored Ape Yacht Club (BAYC) series, has witnessed US$561 million in Otherside NFT sales within a matter of 24 hours. The craze led to the crash of Etherscan, and Ethereum gas fees blew out to thousands of dollars per transaction.

The highly anticipated Otherside metaverse mint on April 30 clogged the Ethereum mainnet, catapulting gas fees to shocking new heights. In less than a day, Yuga Labs generated most of its sales from just the Otherside’s “Otherdeed” NFT, intended as “the key to claiming land in Otherside”, Yuga’s upcoming metaverse game.

A total of 55,000 NFTs were minted at 305 APE each, which translates to about US$5,800 per Otherdeed, given Apecoin’s price at the time of the mint. From this mint alone, Yuga Labs raked in over US$318.7 million.

According to data from CryptoSlam, Otherdeed has already seen over US$242 million in secondary volume traded, and US$190 million of that was on OpenSea. APE pumped 55 percent last month following rumours of a land drop going viral.

High Demand Causes Etherscan Crash

Given the high number of NFTs and higher demand, the Otherdeed mint immediately caused a massive surge in Ethereum gas fees. Traffic on block explorer Etherscan also led to the site crashing. Gas wars, such as experienced in this mint, can occur on proof-of-work chains such as Ethereum when a sudden increase in demand for fast transactions clogs a network, sending fees soaring:

Gas fees on Ethereum saw extreme spikes up to thousands of dollars per transaction. While some were able to get their transactions processed within a few hours for a couple of hundred dollars in gas fees, others reported paying upwards of US$4,000 for a single transaction.

Given the context, the average price of Ethereum gas over the course of the night was more than US$6,000, about 100 to 200 times the normal fee. Data from Etherscan shows that users have paid around 64,000 ETH in gas fees, equalling in excess of US$175 million in 24 hours in relation to Otherside.

Gas Fees Could Have Been Averted

Will Papper, the co-founder of Syndicate DAO, has said that the contract had “nearly zero optimisations” and provided a few “tricks” that could have “saved many millions”:

Yuga Labs has addressed the gas fees issue, noting that the mint was “so large that Etherscan crashed”, and apologised for “turning off the lights on Ethereum for a while”:

There has been a lot of concern regarding Ethereum’s high gas fees, and many Ethereum layer 2 NFT marketplaces are aiming to effect reductions.

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