The massive quantity of Ethereum burnt this weekend was primarily due to CyberKongz VX.
As users fought to mint CyberKongz VX NFTs, the Ethereum network reached a high burn rate of 27.90 ETH per minute on Sunday.
NFTs are used to burn Ethereum.
The quantity of Ethereum burnt by transactions is increasing as the NFT craze approaches its pinnacle.
The highly anticipated CyberKongz VX project debut caused a massive burn of Ethereum this weekend. Those seeking to mint an NFT gorilla competed for block space on the network in what has become known as “gas wars” during the launch, which took place on Sunday afternoon.
Minutes after the contract went life. All 10,000 CyberKongz were produced, sending gas prices skyrocketing to almost 1800 gwei and consuming 27.90 Ethereum ($91,205) per minute at its peak. The cost of minting a Kong climbed to almost $1800 at such high rates, including the hefty miner’s tip required to have any chance of the transaction being completed.
The CyberKongz VX mint produced over $4.7 million in Ethereum, more than double the amount used by NFT marketplace OpenSea in the previous 24 hours. In terms of Ethereum burnt, it is the most “destructive” NFT project to date.
The CyberKongz mint arrives 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 increase, with speculators and flippers snapping up new potential NFTs in a matter of seconds.
Because of the latest EIP-1559 upgrade, the high gas costs resulting from NFT activity are burning many Ethereum. All transactions on the network have burned a basic fee of the asset since the upgrade went live on Aug. 5, leading the network to become deflationary during moments of heavy activity. At the time of writing, the network has burnt 51,754 ETH worth approximately $169 million. With many more touted NFT projects debuting later this week, Ethereum’s deflationary trend is expected to continue.