Pandora (PANDORA), the inaugural “ERC-404” token, experienced a remarkable surge in value, reaching as high as $32,000 on Friday morning after starting at $250 just under a week prior. With a limited supply of only 8,000 tokens, it traded approximately $76 million in volume over the past 24 hours.
This surge has prompted several projects to capitalize on the excitement by launching their own versions of ERC-404 tokens. Some of these projects have even distributed a portion of their token supply to Pandora holders via airdrops, thereby increasing demand for Pandora while generating buzz for their own endeavors. Additionally, some projects have opted to launch on alternative blockchains, such as Arbitrum and Solana, aiming to become pioneers in entirely different ecosystems.
ERC-404 is a combination of the widely-used ERC-20 and ERC-721 standards, which are used for token issuance on Ethereum and non-fungible tokens (NFTs), respectively. This new standard enables developers to create fractionalized NFT collections that can be freely traded and utilized in the open market.
Unlike tokens, where holders can purchase fractions of a whole, NFTs currently exist as one-for-one assets. Although fractionalized NFTs do exist, they often rely on an entity that locks up the NFTs in a wallet and issues tokens representing them.
These tokens are traded freely but may not accurately reflect the value of the locked NFT. ERC-404 addresses this issue by allowing multiple wallets to directly own a single NFT. This opens up possibilities for tokenizing specific exposure in the future, enabling it to be used for obtaining loans or staking holdings.
Despite its significance, it’s worth noting that ERC-404 is not yet an officially recognized Ethereum token standard. These standards consist of rules and protocols that dictate the behavior and interaction of digital tokens within a particular blockchain ecosystem.
The team behind ERC-404 is actively engaged in developing an Ethereum Improvement Proposal (EIP) for this token standard. The EIP process involves introducing new features or functionalities to Ethereum. However, developers caution that this process can be time-consuming and is not accomplished swiftly.
If approved, the standard will be an “official” one recognized by the Ethereum Foundation, a nonprofit that maintains the Ethereum blockchain, for use within the Ethereum ecosystem as an agreed-upon framework that is compatible with Ethereum-based applications.
Pendle is on the verge of surpassing $1 billion in total value locked (TVL).
Pendle, a decentralized finance (DeFi) platform renowned for offering yields through tradable digital tokens, has achieved a total value locked (TVL) of $990 million, as reported by DeFiLlama data.
Operating as a price discovery tool, Pendle segregates DeFi investments into principal tokens (PTs) and yield tokens (YTs). This structure enables the trading of future yields and principal on the open market, allowing investors to speculate on and lock in future yield rates.
According to Pendle developer RightSide, the surge in interest in Liquid Restaking Tokens (LRTs) has been the primary catalyst behind Pendle’s recent growth, as highlighted in an interview on Telegram.
Liquid Restaking Token Finance (LRTFi) is an emerging field within decentralized finance (DeFi) that facilitates the liquidity of staked assets through the issuance of liquid restaking tokens (LRTs). This mechanism enables users to earn rewards while their initial assets are committed to securing network services.
Bitcoin passed $48,000 in the Lunar New Year of the Dragon celebration
Bitcoin (BTC) saw its fifth consecutive day of gains, surging past the $47,000 threshold early Friday. The leading cryptocurrency by market capitalization attained a one-month high as East Asia celebrated the commencement of the Lunar New Year of the Dragon, a period considered highly auspicious according to the Chinese Zodiac.
The Mandarin Chinese pronunciation of “dragon” resembles “long,” adding to its memetic value among crypto traders. Some analysts anticipate Bitcoin to reach $50,000 over the weekend, while others project it could climb even higher to $53,000-$55,000 before the cryptocurrency’s halving event in April.