ERC-404 Hype Surges Ethereum Gas Fees To 8-Month High

The Ethereum network’s gas fees surged to their highest level in eight months due to heightened enthusiasm for a recently emerged, unofficial experimental token standard known as ERC-404.

Cryptocurrency network petrol prices peaked on Feb 9 at an average of 70 gwei, or $60 for a normal transaction. The top petrol price surged to 377 gwei, a figure not seen since May 12, 2023.

Although there are several reasons for the jump in petrol prices, it happened when the ERC-404 token standard started to gain traction in the cryptocurrency community.

The ERC-404 wave began on Feb 5 with the introduction of an experimental standard by the Pandora project. Subsequently, it has experienced a remarkable surge of over 6,100%, with a total trading volume surpassing $474 million.

ERC-404 strives to link ERC-721 non-fungible tokens (NFTs) with ERC-20 tokens, enabling the creation of fractionalized NFTs. This permits multiple wallets to collectively own fractions of a single NFT, enabling them to trade or stake their portions for loans.

ERC-404: The Gas-Efficiency Revolution Unveiled

The new breed of token has the prefix “ERC” attached to it, although the name is still very much unofficial. One of the Pandora project’s engineers, using by the handle “ctrl,” told Cointelegraph on February 9 that the group was aiming to “dramatically reduce” petrol prices.

We aim to enhance gas optimization as it plays a significant role in adoption and the interest of protocols seeking integration. In specific scenarios, we have the potential to reduce gas fees by up to 300% to 400%.

As per the pseudonymous user PopPunk, who claims to be associated with Gaslite, a gas-auditing company, an ERC404 token consumes roughly three times the gas compared to a typical NFT transaction.

One of the creators of an unofficial and experimental Ethereum standard, known as “ERC-404,” is actively working on submitting an Ethereum Improvement Proposal (EIP).

The proposed standard aims to combine elements of fungible and non-fungible tokens (NFTs) in a hybrid form. ERC-404 developer ctrl told Cointelegraph that obtaining an EIP approved is “one of the more bureaucratic things you can do”.

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