🚀🚀🚀 #Ethereum gas fees hit 8-month high amid ERC-404 craze
Gas fees on the Ethereum network surged to their highest levels in eight months as traders rushed to participate in the early stages of the ERC-404 trend, an experimental token standard gaining traction within the #CryptoCommunity .
On February 9th, Ethereum gas prices peaked at an average of 70 gwei ($60 for a standard transaction), with peak costs reaching as high as 377 gwei – levels not seen since May 12, 2023.
The surge in gas prices coincided with the growing hype surrounding the ERC-404 token standard, which gained momentum after the launch of the Pandora project on February 5th. Since then, the project has seen remarkable growth, with over 6,100% increase and $474 million in trading volume.
ERC-404 aims to merge ERC-721 nonfungible tokens (#NFTs ) with ERC-20 tokens, enabling fractionalized NFT ownership. This allows multiple wallets to own a portion of a single NFT, which can be traded or staked for loans.
Despite being unofficial, the ERC-404 standard has attracted significant attention. Developers behind the Pandora project are actively working to reduce gas costs associated with ERC-404 transactions.
According to PopPunk, the co-founder of gas-auditing firm Gaslite, ERC-404 transactions consume approximately three times the gas required for an average NFT transaction.
The surge in network activity on February 9th was primarily driven by increased trading volumes on decentralized exchange protocol #UniSwap . This activity was fueled by trading volumes generated by ERC-404 projects like Pandora and DeFrogs, which collectively saw over $600 million in trading volume in the past week, according to data from crypto aggregator Birdeye.
Source - cointelegraph.com
