By
Steve Muchoki
May 9th, 2024
The entire ERC-404 sector has lost around $60-$70 million in the last 24 hours. Pandora witnessed strong liquidations with other ERC-404 tokens registering 25-30% intraday fall.
Over the last 24 hours, the ERC-404 sector has witnessed a complete meltdown, dropping by a staggering 33%. The total market cap of the ERC-404 sector tanked as low as $163 million earlier today, as per data from CoinGecko.
Pandora (PANDORA), a widely recognized ERC-404 token, recorded a price decline exceeding 24% during the same timeframe. Similarly, other ERC-404 tokens, such as DeFrogs and Rug also saw notable drops, registering decreases of approximately 26% and 30%, respectively.
ERC-404 stands as an experimental and unofficial token standard within the Ethereum ecosystem. It incorporates features from both ERC-20 and ERC-721 standards. As of now, it remains outside the Ethereum Improvement Proposals (EIP) standard category. The primary aim behind this fusion is to facilitate the creation of “semi-fungible” tokens.
ERC-404 tokens offer unprecedented flexibility, allowing them to accommodate diverse asset types and applications. This fusion enhances token interoperability, paving the way for innovative token economy models and applications.
One notable advantage of the ERC-404 standard is its potential to enhance liquidity for Non-Fungible Tokens (NFTs). Through its design, ERC-404 enables the creation of fractionalized NFTs, permitting multiple ownership of digital collectibles. This feature boosts the liquidity and utility of NFTs, expanding their potential applications.
The Rise and Fall of PANDORA
Pandora (PANDORA), a prominent ERC-404 token, experienced a significant downturn following a period of rapid expansion. Over the past week, the token surged by nearly 800%, reaching $14,743 at the time of this report.
PANDORA stands as the inaugural token issued under the experimental ERC-404 standard. Its launch garnered support from various platforms, including OKX, Blur, OpenSea marketplaces, Bitget Wallet, Teller, Wasabi Protocol lending protocols, and the centralized exchange LBank.
Analyzing Pandora’s daily time frame chart reveals its current price resting at the Fibonacci golden ratio level of 0.38. Should Pandora’s price breach its support and close below $12,800 in the upcoming days, a significant downturn may ensue.
In contrast, DeFrogs, another ERC-404 token, is currently trading around $1,200, witnessing a decline of over 20% within the last 24 hours. Over a broader timeframe, Defrogs has experienced a downward momentum of more than 24% over the past 7 days.
As for DeFrogs, its daily time frame chart currently shows trading below its Fibonacci level of 0.38, indicating a potential further decline in the near future. Moreover, the downward trend in the prices of ERC-404 tokens may continue as long as they remain unofficial.