Ethereum gas fees hit $84M last week, thanks to the ERC-404 hype

• Fuel value paid per transaction bounced to ranges final seen in the course of the memecoin frenzy of Could 2023.
• ETH witnessed a minor retracement within the final 24 hours, dropping under $2,800.

Transaction prices on Ethereum [ETH] rose to a 9-month excessive, spurred largely by the hype within the experimental token commonplace ERC-404.

Customers make a beeline for ERC-404 transactions

As per on-chain analytics agency IntoTheBlock, the community collected a complete of $84 million in fuel charges the previous week, marking a 61.5% soar from the week earlier than.

Actually, common fuel value paid per transaction bounced to 71 Gwei on the ninth of February, in accordance with AMBCrypto’s evaluation of Glassnode’s information. Such ranges have been final seen in the course of the Could 2o23 memecoin frenzy that noticed the emergence of Pepe [PEPE] token.

Supply: Glassnode

The spike got here within the days following the launch of the primary purposeful ERC-404 mission, Pandora, which has seen in depth demand currently. As of this writing, the Pandora token was up 270% since its launch, in accordance with CoinMarketCap.

For the curious, ERC-404 is a singular token commonplace, which mixes the properties of ERC-20 (fungible tokens) and ERC-721 (non-fungible tokens). Consequently, tokens below this commonplace are each fungible and non-fungible on the identical time.

A particular use case of this not-yet official token commonplace is that it may be damaged down into fractions, successfully permitting a number of customers to collectively personal a single NFT.

An X person with a pseudonym PopPunk, who additionally occurs to be a co-founder of fuel auditing agency, said that a mean ERC-404 transaction required thrice the fuel required for a mean NFT transaction. It was evidently clear that ERC-404 tokens have been costing customers a bomb.

In the meantime, AMBCrypto additionally noticed a spike in each day on-chain transactions over the week, to the tune of 17%. Actually, about 1.15 million transactions have been settled on the sixteenth of February, the best for the month.

Supply: Glassnode

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ETH pulls again however market urge for food grows robust

As of this writing, the second-largest crypto was exchanging fingers at $2,790, in accordance with CoinMarketCap. ETH witnessed a minor retracement within the final 24 hours, dropping under $2,800.

The broader market sentiment was one in every of “excessive greed”, as per the studying from Ethereum Fear and Greed Index, suggesting substantial FOMO amongst market contributors.