With the start of the TIME Magazine NFT, some users are ready to do everything to be the first owners
According to the Etherscan blockchain explorer, a transaction with a record-breaking 22.5 ETH gas fee appeared on the blockchain yesterday when someone tried to obtain the TIME Magazine NFT. The maximum gas fee has reached 15,000 Gwei.
The newly presented Time Magazine consists of previously produced covers of TIME in the past. The collection is called TIMEPieces, which is created to “Build a Better Future.” Starting from Sept. 23, collectors were able to obtain a random TIMEPiece. The total amount of NFTs is 4,676 pieces and will be revealed to users after the mint. Each NFT piece is priced at 0.1 ETH.
Future owners of TIME’s NFT collection will be able to participate in various events and have access to a variety of “exclusive digital experiences.”
According to TIME, their newly presented collection is part of their goal of encouraging community loyalty and rewards. TIMEPieces is one of the first NFT collections presented by major media. TIME stated that their collection is also presented as part of the innovative extension of their current Digital Subscriptions.
At press time, there are 1,934 holders of the collection, which means TIME has already collected close to $600,000 in one day only. After reaching the new high, gas fees have recovered back to average and are currently at 55 Gwei. The price of the ERC-20 transfer is around $11.
Previously, the NFT industry faced a slight recovery after losing a significant part of its sales volume, which was most likely the consequence of highly increased transaction fees which reaching $50 per transaction in high network congestion periods.
Ethereum Gas Fee Hits 3-Month Making a Case for a Speedy ETH 2.0 Launch
Ethereum proponents who posited that the emergence of the London Hardfork will impact or solve the challenge of high network fees are clearly mistaken as the gas fee is gradually creeping back to new highs. According to Glassnode’s data, the average fee based on a 7-day Moving Average paid on the Ethereum network has topped 0.008 ETH ($25.96), the highest in 3 months.
Ethereum ranks as the most congested public blockchain network in the world and this has had an overbearing impact on the network fees, a development that became a great concern. Prior to the launch of the EIP 1559 upgrade, users are permitted to set their transaction limits, which gives miners the power to sieve out which transaction to confirm per time. This typically results in gas wars and thus making the network somewhat unusable.
The emergence of the London Hardfork was expected to change the narrative with a base fee being quoted by the network. However, the allowance to leave a tip for miners has proven to stir a subtle gas war, which is notably fueling the increasing gas fee.
The NFT Influence
A lot of transactions are known to be initiated on Ethereum-based Decentralized Finance (DeFi) protocol, all of which combined has a direct impact on the increasing gas fees. However, the growth in the Non-Fungible Token (NFT) metaverse has also considerably fueled the rise in the Ethereum network fees.
The average cost of minting an Ethereum-backed NFT is typically between $70 to $100, a range that can spike up to $200 to $300 at peak times. With daily transactions on NFT marketplaces like OpenSea and Rarible surging by the day, it is unsurprising to note the contributions of NFTs to the overall gas fee is not negligible.
Ethereum 2.0 to the Rescue
The design of the Ethereum 2.0 which will function as a Proof-of-Stake (PoS) network will allow for the processing of more Transactions Per Second (TPS). The current TPS on the Ethereum blockchain is barely 10 to 15, and this limitation is the source of the congestion fueling the increase in gas fees. This figure will be boosted to 100,000 TPS with the emergence of the PoS network, and as such, proffer a permanent solution to the congestion challenge.
While the emergence of EIP 1559 is a positive boost on the price of Ether per its deflationary properties, it is not helpful in terms of reducing gas costs. This is a case for the a speedy launch of Ethereum 2.0. Ethereum is changing hands at $3,245.73, up 0.15% in the past 24 hours.