ERC-404 Tokens Drive Ethereum Gas Fees to Record Highs
Ethereum gas fees have skyrocketed, reaching the highest levels since March 2023. The surge in gas prices is a result of the growing hype around ERC-404 tokens, which enable native fractionalization of Non-fungible Tokens (NFTs).
Ethereum Gas Fees Reach Unseen Levels
According to Etherscan, on February 9, 2024, Ethereum gas fees hit an average gas price of 71.4 Gwei, with a maximum of 59,956 Gwei and a minimum of 34.4 Gwei. This is the highest gas fee since May 2023 when the average gas price reached 155.8 Gwei.
ERC-404 Tokens Gain Popularity
The popularity of ERC-404 tokens can be attributed to their high liquidity and interest from traders. One trader made $59,000 by buying and selling the ERC-404 token, MINER, taking advantage of the high gas fees. The co-founder of Gaslite GG predicts that introducing ERC-404 tokens will lead to a continuous rise in Ethereum gas prices.
About The ERC-404 Token Standard
The market capitalization of ERC-404 tokens reached $296 million shortly after their launch on February 5. Although unofficial and lacking a complete audit and endorsement from Ethereum developers, these tokens have gained significant traction in the crypto market. One notable ERC-404 token, Pandora, saw a rise of over 400%.
Hot Take: ERC-404 Tokens Drive Ethereum Gas Fees to New Heights
The recent surge in Ethereum gas fees can be attributed to the growing popularity of ERC-404 tokens. As these experimental tokens gain traction in the market, traders are taking advantage of their high liquidity. However, this surge in gas fees may have unintended consequences for the Ethereum network, leading to a continuous rise in gas prices. As the crypto market evolves, it is important to closely monitor the impact of new token standards on network fees and overall market dynamics.
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