Gas fees on the Ethereum network have soared to levels not seen since March 2023, driven by the growing interest in a new experimental token standard known as ERC-404.
On February 9, Ethereum gas prices soared to an average peak of 70 gwei, equivalent to $60 for a standard transaction. Peak gas costs even reached as high as 377 gwei, a level not seen since May 12, 2023.
Several factors contribute to the heightened gas fees, but the primary catalyst has been the hype surrounding the ERC-404 token standard. This excitement has led to a substantial increase in trading activities, particularly those highlighted by projects such as Pandora and DeFrogs.
These ERC-404 initiatives, among others, have generated over $600 million in trading volume in the past week alone, as reported by crypto data aggregator Birdeye. Since its launch, Pandora has seen remarkable growth, with an over 6,100% increase in value and a trading volume exceeding $474 million.
ERC-404 aims to link ERC-721 non-fungible tokens (NFTs) with ERC-20 tokens, enabling the creation of fractionalized NFTs. This allows multiple users to collectively own a single NFT and utilize their share for trading or collateralizing loans.
ERC404 – token standard not found.
This new "standard" has opened up a Pandora's box on crypto twitter over the last couple of days.
Is it an NFT, a fungible token, or both?
Here's a simple explanation of what ERC404 tokens really areRead more on cryptonews.com