According to Bloomberg News, Yuga Labs, who created the well-known Bored Apes Yacht Club NFTs collection, introduced a Saturday sale of virtual land related to the high metaverse project, which is highly anticipated, raising approximately $320 million worth of digital currency in the greatest offering of the kind. The demand was so strong that event-related activity led to ripple effects across the Ethereum blockchain, disrupting activities and escalating transaction fees.
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The ApeCoin holders who verified their identities rushed to buy deeds worth 55,000 parcels of Otherside virtual land, the project’s planned metaverse game, and the latest Bored Ape franchise extension. Expectations that interest might be vital for these plots, the Ethereum-based nonfungible tokens called Otherdeeds caused the price of ApeCoin to escalate in the past week, just before the sales.
Jason Wu, who founded the decentralized lending protocol DeFiner, stated that “Yuga Labs” virtual land sale has led to one of the highest spikes in Ethereum-related transaction fees. Jason also said that although he had seen other non-fungible tokens, this one was perhaps the highest.
Making a transaction or minting a token on Ethereum requires the traders or the token creators to shell out a fee to those that place orders on the network. Transaction costs go higher if there is congestion in the network if a particular transaction must be prioritized. This can affect the business apps that are Ethereum-based like Uniswap, thereby slowing down the transactions on these other platforms.
According to Bloomberg News, the Apecoins raised in the sale get locked up, which means that they cannot be sold, thereby reducing the number of coins in circulation, for a year, as per the Twitter account of Otherside.
Aside from the 55,000 Otherdeeds sold on Saturday, an additional 45,000 were allocated to Bored Ape Yacht Club holders and Yuga Labs and Mutant Ape NFTs, and project developers. An additional 100,000 are expected to be awarded to the holders of Otherdeed, as per the Otherside website.
According to Bloomberg News, ApeCoin is striving hard to become one of the widely used apps in web3apps by using blockchains and digital coins. The main aim is to let owners access a broad spectrum of services, events, games, and merchandise. It is the governance token of ApeCoin DAO, which includes on the board Reddit C-founder Alexis Ohanian, FTXs Amy Wu, and Animoca’s Siu. Before the Otherdeed sale on Saturday evening, OpenSea stated that it could accept ApeCoin.
The monthly sales volume on OpenSea, which is the biggest NFT marketplace globally, was higher in April than what it was in March but still below an all-time January high, as per the data tracker Dune.
