Ethereum Gas Fees Spike to New Highs on Latest NFT Hype
The NFTs could be created with the project's APE coin, but the gas fees had to be paid in ETH. According to Etherscan, due to high demand, the average cost of an Ethereum transaction soared to above $400. BitInfoCharts, a network charge tracker, said that average fees reached an all-time high of over $200 on May 1.
Yuga Labs apologized for the Ethereum network outage and offered an alternative,
"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 chain to scale properly."
According to Ultrasound, the current ETH burn rate is roughly 6,000 per day, or around $17 million. Money tracking software. Issuance has reverted to an inflationary state, but after 'the Merge' ushers in proof-of-stake and the conclusion of the mining process, it is expected to revert to a deflationary state.
The good news is that Ethereum transaction costs have soon returned to normal, with Etherscan reporting an average of $3 per transaction.
Another plus for the network is that it has become deflationary as the ETH burned through the EIP-1559 mechanism has reached new highs.
More than 70,000 ETH, or more than $200 million, were destroyed during peak demand, pushing issuance into the deflationary zone by as much as 18 percent.
