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The price of Pandora (PANDORA), the first token using the ERC-404 standard, has risen sharply in a few days.
On Feb. 5, the token was valued at $1,542, but by Feb. 9, it had skyrocketed to $32,381, according to CoinGecko.
At the time of writing, the price of PANDORA has corrected to $25,534.
Pandora's price within a week. Source: Trading View Is ERC-404 the new
crypto narrative?
Recently, there has been a discussion in the crypto community about ERC-404. This standard essentially combines ERC-20 features and ERC-712 functionalities .
The first standard is needed to create tokens in the Ethereum blockchain, and the second is needed for a non-fungible token (NFT).
It turns out that a token created in the ERC-404 standard is both fungible and non-fungible.
However, it's important to note that the protocol hasn't been audited yet, making it difficult to determine its level of security.
How are Pandora and ERC-404 related?
Pandora is one of the earliest and most renowned projects built on this protocol, positioning the venture as a pioneer in this market.
The principle behind Pandora is that users purchase a token of the same name on one of the decentralized exchanges (DEX).
After purchasing the token, the user also obtains Pandora's NFT. Similarly, the associated NFT is also lost when the token is sold.
The value of the NFT corresponds to the value of one token. However, it's crucial to note that if you opt to sell 0.3 PANDORA, the entire NFT will be burned in the process. That is something to pay close attention to, as it may have financial repercussions.
Pandora is built on the element of surprise. No one knows what kind of NFT will be captured. The collection is called Replicant and looks like a box painted in one of the colors.
Uniswap V3, a decentralized exchange, commands the highest trading volume for Pandora .
According to the platform's data, the PANDORA token has climbed to the top of the most popular tokens, securing the 5th position and displacing Wrapped stETH to 6th place.
Pandora's volume on Uniswap V3 is $77.3 million at the time of writing, and the total value locked (TVL) has grown to $25.9 million.
Ranking of the top tokens on Uniswap. Source: Uniswap According to Dune, Pandora's total NFT holders have also surged. On Feb. 2, it was 265, and by Feb. 9, it had increased to 1,481.
Pandora's total NFT holders in February. Source: Dune However, it's too early to predict the future of the project. Of course, there is a lot of hype around Pandora.
First, ERC-404 has appeared as a breath of fresh air in the crypto world, generating initial interest.
Second, traders are looking for potential narratives ahead of the upcoming bull run 2024 . Perhaps ERC-404 will be one of them, but it's too early to tell.
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