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The increase in transaction costs on Ethereum (ETH) continues unabated. The excitement around the experimental token standard ERC-404, which emerged in recent weeks and peaked with the PANDORA project, seems to have reached its highest level in 9 months.
Users Turn to ERC-404
According to data provided by the renowned blockchain analytics firm IntoTheBlock, the network collected a total of $84 million in gas fees last week, indicating a 61.5% increase when compared to the previous week.
An analysis conducted with data from Glassnode shows that the gas price per transaction jumped to an attention-grabbing 71 Gwei on February 9. The last time these levels were seen was in May 2023, during the memecoin frenzy that occurred with the launch of the Pepe (PEPE) token.
The surge occurred in the days following the exposure of the ERC-404 project PANDORA, which rose from $1,000 to $33,000 before falling again. Despite the price drop, Pandora token has shown a 270% increase since its launch, according to data from Coinmarketcap.
ERC-404 and Emerging Questions
For readers unfamiliar with ERC-404, it is described as a unique token standard that combines the features of ERC-20 (fungible tokens) and ERC-721 (non-fungible tokens).
One of the most confusing aspects of this standard is that it has not yet gained official status. According to the standard, multiple users can collectively own a single NFT, while ERC-404 allows for it to be divided into parts.
X, a founding partner of a company that monitors gas fees spent on network transactions, noted that an average ERC-404 transaction requires three times the gas of an average NFT transaction. This revealed that users interested in dealing with ERC-404 tokens must be prepared to bear high costs.
On the other hand, observations made throughout the week on the Ethereum side showed a 17% increase in daily on-chain transactions. More importantly, the 1.15 million transactions that took place on February 16 marked the highest number for the month.
