A new Ethereum token standard is taking the cryptocurrency market by storm. It is the ERC-404 token standard. This token standard combines the powerful features of ERC-721 and ERC-20 to provide a single way for project developers to maximize the liquidity of their projects. There is already an explosion of tokens built using this standard as its popularity spreads like wildfire through the cryptocurrency industry. The market leaders so far are:
Pandora leads Ethereum ERC-404 adoption
The PANDORA project team is responsible for popularizing the ERC-404 standard, and the project’s success proves this. Pandora was first released on February 2, 2024, but the project did not receive much attention at the time. However, that will change in the days following launch as investors begin to catch on to the technology and prices begin to rise.
Pandora’s use of both ERC-721 and ERC-20 token standards allows it to provide sufficient liquidity for non-fungible tokens (NFTs), which have historically been known to be highly illiquid. As popularity grew, prices rose from hundreds of dollars to tens of thousands of dollars.
Over the past three days, the price of PANDORA has traded from under $5,000 per token to over $23,000 per token on Thursday. This means the price has skyrocketed by more than 400%, bringing its market capitalization to nearly $200 million. But perhaps the token’s best selling point is its high liquidity, currently sitting at over $36 million.
PANDORA trading at $23,000 per coin | Source: PANDORA/USDC on Tradingview.com
DeFrogs (DEFROGS) follows the success of Pandora.
As with any new story, there were other projects that emerged to compete with Pandora, one of them being DeFrogs. The project consists of 10,000 Frog PFPs built using the ERC-404 standard. What this means is that whenever a user purchases a DeFrogs token, an NFT is also minted.
The ERC-404 standard allows projects to provide consistent liquidity whenever investors need to hold positions. Buoyed by the hype around Pandora’s success, the project is already up more than 2,000% in the past three days. As of this writing, it is trading at $2,800 per token and has a market capitalization of $27.6 million.
Monkees (MONKEES) launches Ethereum Monkey PFP using ERC-404
As expected, the new NFT token standard was not completed with the Monkey PFP project, and this is where the Monkees (MONKEES) come into play. Although this project is newer than the other two projects mentioned above, it has benefited greatly from the success of its predecessors.
The Monkees project is a collection of monkey PFPs built on the same ERC-404 standard. The price of the token, which was launched early Thursday, has risen more than 2,000% from its launch price at the time of this writing, trading at $17,000 per token. This brings the market cap to $1.8 million and liquidity to $256,000.
Apart from these projects, Punks404 (PUNK) and EtherRock404 (ROCK) are other projects utilizing this token standard. PUNK is still trending lower with a market cap of $760,000, while ROCK has had more success with a market cap of $4.4 million.