A New Token Standard Maximizing Liquidity: ERC-404
There’s a new token standard in town, and it’s making waves in the crypto market. The ERC-404 token standard combines the power of ERC-721 and ERC-20, offering project developers a single avenue to maximize liquidity for their projects. This standard has gained immense popularity, with tokens built using ERC-404 already experiencing significant growth. Let’s take a look at the market leaders in this space.
Pandora: Leading the Way in ERC-404 Adoption
Pandora (PANDORA) is the project responsible for popularizing the ERC-404 standard, and its success speaks for itself. Although it initially flew under the radar after its launch on February 2, 2024, investors soon caught on to its potential, causing its price to skyrocket.
By utilizing both the ERC-721 and ERC-20 token standards, Pandora ensures ample liquidity for non-fungible tokens (NFTs), which are typically illiquid. As its popularity grew, Pandora’s price surged from a few hundred dollars to over $23,000 per token in just three days. Its market cap reached nearly $200 million, and it currently boasts high liquidity of over $36 million.
DeFrogs: Following Pandora’s Success
Inevitably, other projects emerged to compete with Pandora, including DeFrogs. This project features 10,000 frog PFPs (profile pictures) built on the ERC-404 standard. Each purchase of the DeFrogs token mints an NFT alongside it.
By leveraging the ERC-404 standard, DeFrogs ensures consistent liquidity for investors seeking to exit their positions. Riding on the coattails of Pandora’s success, DeFrogs has already seen a staggering 2,000% increase in value in just three days. It currently trades at $2,800 per token and boasts a market cap of $27.6 million.
Monkees: Ethereum Monkey PFPs with ERC-404
Of course, a new NFT token standard wouldn’t be complete without a monkey PFP project, and that’s where Monkees (MONKEES) comes in. This project consists of a collection of monkey PFPs built on the ERC-404 standard. While it is newer than the previous two projects, Monkees has benefited greatly from their success.
Since its launch on Thursday, Monkees’ token price has surged over 2,000%, reaching $17,000 per token at the time of writing. Its market cap stands at $1.8 million, with liquidity totaling $256,000.
In addition to Pandora, DeFrogs, and Monkees, other projects like Punks404 (PUNK) and EtherRock404 (ROCK) are also leveraging the ERC-404 token standard. PUNK currently has a market cap of $760,000, while ROCK has found more success with a market cap of $4.4 million.
Hot Take: ERC-404 Revolutionizes Token Liquidity
The introduction of the ERC-404 token standard has revolutionized liquidity for project developers in the crypto market. By combining the features of ERC-721 and ERC-20, this standard allows for increased liquidity in traditionally illiquid NFTs. As demonstrated by the success of Pandora, DeFrogs, and Monkees, tokens built using ERC-404 have the potential for explosive growth. The market leaders in this space are already reaping the rewards, attracting significant attention and investment. With its high liquidity and proven track record, the ERC-404 standard is undoubtedly reshaping the crypto landscape.
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