The crypto world never sleeps, and neither do we! Let's dive into the 44th edition with updates on ERC-404, the new kid on the block.
This week a new token standard took the industry by storm, amassing an insane amount of liquidity. Born out of a series of iterations and experiments, this token standard combines the capabilities of the ERC20 and ERC721 standards.
You guessed it, it’s called ERC-404.
ERC 404 is an experimental token standard that aims to bridge fungible tokens and NFTs enabling liquidity and fractionalization. That means users can buy tokens implementing this standard as both fungible tokens (ERC20) and as NFTs.
In other words, getting a full ERC20 token gives you access to minting the NFT in your wallet. But if you get less than a full ERC20, you’ll not be entitled to mint the NFT, you’ll only be exposed to the price movements.
This is a huge breakthrough in token experimentation and NFTs.
In just a few days, the market cap for the ERC404 category has morphed to over $350 million with an average of over $175M in trading volume. That’s not even all, Pandora, the leading ERC404 NFT has outpaced most blue chip NFT collections in a matter of days.
This trend was kickstarted by Pandora, the pilot token built on the ERC404 token standard. Since its launch, Pandora has skyrocketed to over 5000%. They have 10,000 NFTs called Replicants, which are bound to 10,000 Pandora tokens.
As earlier mentioned, you’ll only get to mint any of these tokens when you buy 1 full Pandora ERC token at market price. The euphoric success of Pandora has attracted lots of other players to the ERC404 market.
A few tokens like DeFrogs, Monarch, and Cellmates have also made out-sized gains lately. Also, some have rugged, and some are struggling to get a pie of the 404 market share.
At this pace, I won’t be surprised to see the market cap for ERC404 tokens hit $1B as it is now gaining the attention of prominent publications, VCs, and protocols. The crypto community generally likes new things, and 404 easily ticks all the boxes. Here’s my take:
Farcaster - the new X
This year is giving us back-to-back surprises in crypto, and we’re here for it. Farcaster, a SocialFi app went viral recently attracting tons of new users.
For those hearing Farcaster for the first time, it is a decentralized social media platform built with a focus on user autonomy, privacy, and interoperability. Like X (Twitter), you can create an account on Farcaster, make posts, and interact with other posts.
The recent $DEGEN airdrop for Farcaster users is one of the key things driving its growth and popularity. Plus, there’s another wave of $DEGEN airdrop coming soon. Crypto rewards active participation, and if you don’t have an account there already it’s time to create, and play around.
This airdrop is just the first of many, take advantage of it. You can join using this invite link, and follow me here.
Tweets of the week
Bullish news for the Ethereum community as their next network upgrade, Dencun, is coming on 13th March. If you recall their last upgrade, Shanghai, heralded the multi-billion dollar Liquid Staking narrative we are witnessing today.
Generally, I think 2024 is a big year for the Ethereum Network as ETH spot ETF will also be approved later in May. I am expecting more upside on its token price.
Alpha Bites and Tweets
Mint Polyhedra free NFT - link
Wormhole announces token & airdrop - link
Solana kickstarts its first Scribes Writing Hackathon - link
Trade pre-markets on Aevo (airdrop announced) - ref link
That’s a wrap.
Thanks for reading!
Until next Friday,
Viktor DeFi.
PS: I’d love to hear your feedback and comments.