As users competed to mint CyberKongz VX NFTs, the Ethereum network reached a peak burn rate of 27.90 ETH per minute on Sunday.
NFTs Destroy Ethereum
As the craze for NFTs grows, so does the amount of Ethereum burned in transactions.
Extreme levels of Ethereum were burned this weekend, fueled by the highly anticipated CyberKongz VX project launch. The launch, which took place on Sunday afternoon, saw those looking to mint an NFT gorilla compete for network block space in what has become known as “gas wars.”
All 10,000 CyberKongz were minted minutes after the contract went live, causing gas prices to skyrocket to over 1800 gwei at their peak, burning 27.90 Ethereum per minute. At such high prices, minting a Kong cost more than $1800, not including the large miner’s tip required to have any chance of the transaction being processed.
Overall, the CyberKongz VX mint burned nearly $4.7 million in Ethereum, more than doubling the amount consumed by NFT marketplace OpenSea in the previous 24 hours. So far, it is the most “destructive” NFT project in terms of the amount of Ethereum burned.
The CyberKongz mint comes at a time when NFTs are at an all-time high. Floor prices for popular projects like Pudgy Penguins and Bored Ape Yacht Club continue to rise, with speculators and flippers snapping up new promising NFTs in seconds.
Because of the recent EIP-1559 update, the resulting high gas prices from NFT activity are burning a large amount of Ethereum. Since the update went live on August 5, all network transactions have burned a base fee of the asset, causing the network to deflationary during periods of high activity. At the time of writing, the network had burned 51,754 ETH worth more than $169 million. With many more hyped NFT projects launching later this week, Ethereum’s deflationary action is likely to continue.