A Look at the Rise and Fall of ERC-404 Tokens on the Ethereum Blockchain
In recent days, there has been a surge in interest and network gas fees due to the emergence of ERC-404 tokens on the Ethereum blockchain. These experimental tokens, which combine elements of both ERC-721 and ERC-20 standards, gained popularity quickly, with some experiencing significant price increases.
However, the initial excitement surrounding these tokens has waned, and prices are now plummeting, with double-digit daily losses being recorded. This decline can be attributed to the introduction of an alternative implementation called Divisible NFT (DN-404), which promises improved performance and lower costs.
While ERC-404 tokens face competition from DN-404, Ethereum itself is eagerly awaiting the Dencun update scheduled for March 13th. This update will introduce features like proto-danksharding to improve scalability and reduce validation fees on the network.
Ethereum’s Bullish Structure and Price Analysis
Despite the challenges faced by ERC-404 tokens, Ethereum continues to consolidate its bullish structure. The cryptocurrency is currently trading at $2,483, above the 50 EMA on a weekly time frame. With the approval of the Bitcoin spot ETF on US exchanges, Ether aims to reach $3,000 after being rejected at $2,700.
To fuel buyer hopes, it is crucial for ETH to break the psychological barrier of $2,500 and subsequently surpass $2,700. On the other hand, bears will try to bring prices below $2,150. The outcome will determine price action in the coming weeks, but overall, Ethereum is expected to register new annual highs.
It’s important to consider the ETH-BTC chart as well. Ethereum’s performance often depends on its relationship with Bitcoin, and identifying levels of bullish strength in the ETH-BTC chart is crucial to predict its value against the dollar. In the coming weeks, a recovery of ETH against BTC could potentially push the asset’s value higher.
In an optimistic scenario, both ETH and ERC-404 tokens could benefit from Ethereum’s success, solidifying its position as a leading decentralized network in the crypto landscape.
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