Buyers of Otherdeeds NFTs have been on the receiving end of the bite of transaction fees this week. While the virtual land has been subject to a lot of hype – that turned out to be a big negative for those paying some of the higher costs.
Of course, taken on surface-level – the Yuga Labs team (BAYC creators) had managed to bring in $320 million for its Otherdeeds NFTs, the febrile activity on Ethereum had an unfortunately expected consequence.
One of the fundamental problems, we’ve discussed here, regarding Ethereum, is the trade-off between creating a complex game with higher transaction costs, or a simple game with low costs. While the sale brought in a lot of revenue, buyers of any of these NFTs found themselves paying as much as $6,000 in transaction fees.
Painful enough on their own, these fees contributed to a collective cooling of the market; with some buyers losing $1,700 per transaction when selling their NFTs. Broadly speaking, OtherDeeds has seen its trading volume drop even further; falling by 68% from last Tuesday.
Not all Otherdeed NFTs are built the same. While all of them were plots of virtual land, they each had unique aspects, like mountains, which increased/decreased the likelihood of finding precious stones.
With the sale pains in the rear-view mirror, holders of these can expect to put them to use in the upcoming Otherside game. Even so, the sale does demonstrate that, while Ethereum has come a long way since its conception – transaction fees remain a painfully expensive issue.