The experimental ERC404 sector on the Ethereum blockchain has experienced a significant decline in the past 24 hours, with its overall market capitalization plummeting by 29%.
With this drop, the market cap of the ERC404 sector currently stands at approximately $180 million, according to data from price tracker CoinGecko.
ERC404 Sector Struggles
According to CoinGecko, major ERC404 tokens such as PANDORA saw a decline of over 15%, while DEFROGS and RUG experienced steeper declines of 22% and 38%, respectively.
Other tokens on the list include TADPOLE with a drop of 6.5%, CRYSTAL (-26.6%), BAKE (-22.9%), TROVES (-17.2%), $ROCK (-31.5%), DOGPET (-51.8%), and ANON (-32.8%).
Notably, only one ERC404 token, “YES,” saw gains in the last 24 hours. The tokens saw a 7.1% surge on the day.
This latest decline comes after a recent rally from the ERC404 tokens, with investors making significant profits by betting on them. Last week, a trader made a whopping $1.2 million gain in just two days by investing in PANDORA.
Why the Drop?
ERC404, which blends the functionalities ERC721 (NFTs) and ERC20 (fungible tokens), has garnered noticeable attention due to their potential to unlock new use cases and functionalities within the Ethereum ecosystem.
However, their experimental nature and lack of official Ethereum Improvement Proposal (EIP) standardization have also raised concerns about their stability and long-term viability – which could have been a major driver to decline.
Another major factor that may have contributed to this decline is profit-taking. Following a period of significant gains, some investors might have been taking advantage of the rally by locking in profits.
Meanwhile, despite the latest setback, the ERC404 sector remains an active development and innovation area.
