Ethereum Blockchain’s experimental token standard ERC-404, which combines ERC-20 and ERC-721 standards, saw a sharp decline in token values. According to CoinGecko, in the last 24 hours, more than 33% of the total market value of the ERC-404 sector was wiped out.
Significant Drop in ERC-404 Tokens
According to CoinGecko, tokens created with the experimental token standard ERC-404, which combines ERC-20 and ERC-721 standards, dropped unexpectedly in the last 24 hours. This decline in ERC-404 tokens, which are not yet part of the final Ethereum Improvement Proposals (EIP) standard category, caught many investors off guard.
Current data shows that the total market value of the sector has dropped by over 33% in the last 24 hours. Alongside this meltdown in market value, key projects such as PANDORA fell by over 15%, DEFROGS by over 22%, RUG by over 38%, and FROGGY FRIENDS by over 26%.
What is ERC-404?
As known, ERC-404 stands out as an experimental token standard that aims to bridge the gap between fungible tokens (ERC-20) and NFTs (ERC-721) to enable liquidity and fractionation. Tokenization, also known as fractionation, involves dividing an asset into smaller tokens. The ERC-404 standard, which is based on this approach, particularly opens the door to trading a smaller part of an NFT, thus allowing for more affordable trading and giving investors access to a broader range of assets.
Although the ERC-404 standard is still in an experimental phase and has not yet become an official EIP, there are many projects created using this standard. Prominent among these projects are PANDORA, DEFROGS, RUG, and FROGGY FRIENDS.
