ERC-404 has recently sparked significant interest within the community, as evidenced by the Pandora token's price surpassing $32,000. Consequently, trading volumes and token prices are receiving considerable anticipation.
Overview
ERC-404 is expected to be a new trend in early 2024. While meme coins like BRC-20 and Inscription garnered investor excitement towards the end of 2023, early 2024 sees a potential shift in interest towards ERC-404, which offers tokens with smaller market capitalizations.
Statistics on market capitalization and trading volume for ERC-404 tokens on platforms such as CoinmarketCap, Coingecko, and Cryptorank remain relatively scarce. This suggests that ERC-404 may represent a new, untapped opportunity.
Over the past 30 days, ERC-404's market capitalization has surged to approximately $221 million from obscurity, with Pandora (PANDORA) alone accounting for $214 million. Trading volume for ERC-404 tokens has increased by 8,400% to nearly $114 million over 30 days, with 24-hour trading volumes ranging from $10 million to $40 million.
Fundamentally, the ERC-404 token standard has not yet undergone the official Ethereum Improvement Proposal (EIP) process.
It is a solution to help NFT sets have high liquidity through AMM Pools (like ERC20 tokens), while still preserving the characteristics of NFTs that are rarity, uniqueness and representation (like previous NFTs on ERC721). Thereby, you can use NFT to do many things like a token, which can be farmed, staked, Defi... Basically, I imagine there are NFT sets with very high prices (dozens of ETH) that ordinary people can access.
This makes buying/selling that NFT difficult. So this ERC404 game will split that NFT into many "pieces" to get a cheaper price. At the same time, bring up AMM pools to trade like a normal token. For example, if you want to buy a piece of land, but don't have enough money, can you force people to divide the red book? Impossible.
At this time, there will be a reputable unit that will encode that piece of land into an NFT, then use ERC404 to divide it into smaller parts, then you can buy it with an appropriate amount of capital. At this time, if that land is rented, you will also receive a rental amount corresponding to the % of the capital you purchased on the total value of the land.
Why is ERC404 referred to as super technology?
There could be several reasons why some people refer to ERC-404 as “super technology” in the blockchain and cryptocurrency space. Below are some reasons why some may believe ERC-404 has the potential to be a breakthrough technology:
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Enhanced Liquidity for NFTs: ERC-404 is designed to improve the liquidity of non-fungible tokens (NFTs) by splitting them into smaller parts. This could increase opportunities for buying and trading NFTs more easily, thus enhancing their liquidity.
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Opening Investment Opportunities for Ordinary Users: By fractionalizing NFTs and creating liquidity, ERC-404 could open up investment and ownership opportunities in digital assets for ordinary users, not just professional or wealthy investors.
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Wide Range of Potential Applications: Enhancing the liquidity of NFTs could open up numerous new applications in decentralized finance (DeFi), the digital art market, gaming, and many other sectors.
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Blockchain Technology Breakthrough: ERC-404 represents a significant step forward in improving and expanding the flexibility of token standards on the Ethereum blockchain. Fractionalizing traditional digital assets into smaller parts could have far-reaching implications for how assets are traded and owned in the future.
However, it's important to recognize that ERC-404 also faces challenges and risks, and calling it 'super technology' may depend on each individual's perspective.
Just a few more days until you'll get to see an ERC404 collection on BeraChain. Get ready for the journey.
Please note that early adopters of our protocol will receive discounts/WL privileges. Please prepare your Bera faucet to experience our collection. The snapshot can occur at any time without prior notice and not financial advice. Please take responsibility for risks and make decisions for yourself.