By: Eliza Bennet
The Ethereum ERC-404 token ecosystem recently experienced a notable market capitalization decrease within 24 hours, amid a turbulence in the crypto market as Bitcoin rallies. However, there's an area in the crypto space that doesn't seem to be affected negatively. Gaming tokens, in particular, have seen significant surges, riding the bullish wave of Bitcoin. Cryptocurrency game, Pixelmon, chose an Ethereum scaling network after raising $8 million in funding while 'Immutable' spiked to a two-year high and the 'Heroes of Mavia' token soars as Bitcoin broke the $50,000 mark for the first time since 2021.
The recent declines in the ERC-404 sector followed a rapid surge in its popularity. ERC-404 token standards offered a new concept of semi-fungibility to Ethereum, combining the divisibility of ERC-20 tokens with the uniqueness of ERC-721 tokens. However, as transaction fees increased due to the rising popularity of ERC-404, developers responded by working on an alternative implementation called Divisible NFT (DN-404) in an attempt to reduce these transaction fees.
Recent popularity of ERC-404 tokens have led to a substantial increase in Ethereum gas fees, pushing costs to their highest levels in the past eight months. Since ERC-404 tokens allow fractional transfers of linked non-fungible tokens, the hype has led to significant increases in the Ethereum transaction costs. Despite the emergence of DN-404 being on the horizon, one thing remains sure — ERC-404 brought excitement and volatility to the crypto market, transforming the dynamics of token transactions and the nature of non-fungible tokens.
© BlockBriefly. All Rights Reserved.