Crypto News- The Ethereum network experienced a surge in gas fees, reaching levels not seen since May 12, 2023, as interest in the new experimental token standard, ERC-404, intensified.
Gas prices soared to an average peak of 70 gwei ($60 for a standard transaction) on Feb. 9, with peak gas costs peaking at 377 gwei. This surge coincided with the growing excitement surrounding ERC-404, propelled by the launch of the Pandora project on Feb. 5. Since then, the standard has seen a staggering 6,100% increase and amassed over $474 million in volume.
Ethereum Gas Fees Surge as ERC-404 Excitement Peaks
ERC-404 introduces a novel concept by binding ERC-721 nonfungible tokens (NFTs) to ERC-20 tokens, enabling fractionalized ownership of NFTs. This innovation has sparked interest in the crypto community, despite the unofficial nature of the ERC-404 name.
ERC-404 Sparks Ethereum Gas Fee Surge: Navigating Challenges and Opportunities
Speaking to Cointelegraph, a developer from the Pandora project, operating under the pseudonym “ctrl,” emphasized the team’s focus on reducing gas costs significantly to enhance adoption and protocol integration.
However, challenges persist, with Gaslite co-founder, PopPunk, noting that ERC-404 tokens consume about three times the gas of an average NFT transaction. The spike in network activity on Feb. 9 primarily originated from decentralized exchange protocol Uniswap, driven by substantial trading volumes from ERC-404 projects like Pandora and DeFrogs.
These projects collectively generated a trading volume exceeding $600 million in the past week, signaling a growing appetite for the ERC-404 standard within the crypto space.