ETH burning and gas prices surge, how will ETH’s value be shaped?

Ethereum ETH/USD is a community-run cryptocurrency project that powers thousands of decentralized applications (dApps).

It is also the home for many non-fungible tokens (NFTs), as many creatives will typically select this specific blockchain network as a means of minting their NFTs.

The Yuga Labs sale of Otherdeeds NFTs as a catalyst for growth

Ethereum’s community saw the largest NFT mint as of yet, as Ethereum’s gas prices increased to unprecedented levels, as even users experienced failed transactions due to bottlenecks experienced by the network.

On April 26, we went over an Ethereum Health Check, where we jumped into on-chain analysis to view the state of the world’s second-largest cryptocurrency. However, this network was tested to its limits on May 1, 2022.

Bored Ape Yacht Club creator Yuga Labs launched a sale of Otherdeed NFTs, which represent digital land seeds on the Otherside metaverse.

Each piece of land sold at 305 ApeCoin (APE), after which Yuga Labs made $561 million after selling 55,000 NFTs almost instantly. 

While these NFTs could only be minted in APE, they also required Ethereum (ETH) for gas fees.

The mining mechanics which were utilized by Yuga Labs foresaw the sale of NFTs in phases whilst anticipating the momentary rise in price, which would accelerate the number of users minting the NFTs. 

According to data from Etherscan, numerous users paid between 2.6 ETH or $6,500 to 5 ETH of $14,000 in gas fees.

Throughout this phase, according to data compiled from Glassnode and Data Always, nearly 70,000 ETH was burned on May 1.

All of this led to the overall increased usage of the Ethereum network and could lead to an even higher increase in the value of the ETH token.

Should you buy Ethereum (ETH)?

On May 2, 2022, Ethereum (ETH) had a value of $2,841.81.

In order for us to see what this value point actually means for the future growth of the ETH cryptocurrency, we will be going over its all-time high value, alongside its performance throughout the previous month. 

The all-time high of the Ethereum (ETH) cryptocurrency was on November 10, 2021, when ETH reached a value of $4,878.26. Here we can see that, at its ATH, the token was $2,036.45 higher in value or by 71%.

When we go over the performance of the token throughout the previous month, Ethereum (ETH) had its highest point of value on April 4, 2022 with a value of $3,550.74.

Its lowest point of value, however, was on April 30 with a value of $2,790.99. Here, we can see a decrease in value of $759.75 or by 21%.

With this in mind, Ethereum (ETH) can reach a value of $3,000 by the end of May, which makes it a solid token to buy.

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