As CryptoSlam journeys deeper into Web3, we’d like to invite our earliest supporters, as readers of NFTs On Deck, to participate in our first ever Zealy Quest. We have big plans for 2024, and in many ways, that starts today. Our Zealy Quest will reward your participation with XP. But what is the XP for?
Stay tuned…
For the Love of the Game (Market Commentary) |
Pandora's box has literally been opened in NFTs with the introduction of the new ERC404 token standard.
This pandora’s box reveals exciting possibilities for traders but also introduces a new vulnerability that just may lead to some traders getting wrecked. For the past week, one project has stood head and shoulders above the rest, with the Pandora NFT collection not just grabbing the mindshare of the NFT space, but a cool $73m in sales at the same time. While not the first ERC404 collection (that credit goes to Emerald), the Pandora collection gives its token holders both an ERC20 (fungible crypto), and an ERC721 (an NFT). Traders now have the flexibility of quick access to liquidity, and all of the benefits of an NFT that you’ve come to expect with ERC 721s. There is a twist though, in that, if you sell your fungible ERC20 token, your NFT is burned. The flip side of that is that when you buy one of the fungible tokens, you’re minted a new NFT.
There’s a lot of potential for NFT projects with a tool like this. Want to gate certain access or perks behind a specific trait? Collectors can pay a premium for that trait on an NFT marketplace, or now they can buy and sell the fungible token to re-roll their NFT. Where I really think this token standard will shine is with generative artists.
We have a problem though. One of the NFT space’s most respected developers, Yuga Labs’
0xQuit, audited the ERC404 and found a significant issue that can lead to your NFT being stolen. As it turns out, the ERC404 is not an officially recognized token standard that went through Ethereum’s EIP process. Instead, the team behind the standard said, “Official stamp of approval be damned, we’re innovating”. That may have been a mistake. 0xQuit and a dream team of devs have now put together their own spin on the ERC404, called the DN404. More gas efficient and no chance of having your NFT stolen, the DN404 will likely take over as the dominant standard in this newly emerging tech. While Pandora itself may not be the “token standard” for the 404 protocol in 6 months, I think the idea of the ERC404 will be around for
a long, long time. Quick liquidity and gamification are obviously appealing to traders, so bringing it to traders with less friction, like the ERC404 and DN404 both do, just seems like an obvious win.
For now, the ERC404’s impact on the market can’t be overstated. Last week we saw our highest week of NFT sales in 2024 if you add Bitcoin’s RSIC and Quantum Cats sales.
Average sales prices and trade profits indicate that traders are hunting for grail NFTs once again, like CryptoPunks, Bored Apes, and fine art. Collectors are back to collecting, and with the momentum that’s building now, let’s just say that 2024 is feeling an awful lot like early 2021. If you weren’t around then, I’ll just tell you it felt a lot like this. NFTs sizzled, momentum steadily building, and ultimately the peak of the year’s market came in the late summer. Am I hoping for a repeat of that? You better believe it. - Pandora is one of the hottest NFT collections we’ve seen in years thanks to their exciting new ERC 404 token standard. In fact, the last time we saw an NFT collection do over $70m in sales in a
week was back in May 2022 when Azuki and Otherdeeds saw $70m+ in weekly
sales.
- Bitcoin’s ordinals are cooking again, firmly holding the #2 spot with $9.5m in sales. We’re currently onboarding 2 of the hottest Bitcoin
collections, Quantum Cats and RSIC, and those combined saw over $31.5m in sales.
- Nobody I know still knows anything about this Nobody collection, and yet it still is dominating Ethereum with its $7.36m in
sales.
- Pudgy Penguins are flying once again, this week threatening to flip the Bored Ape Yacht Club’s floor price. Sales are up 157% while their average sale price has climbed to a high of
$55,165.67 yesterday, up from $36,203.75 last week.
- Solana’s Transdimensional Fox Federation and Mad Labs have shown the resilience of the Solana blockchain’s NFT ecosystem, selling for a combined $12m, even with a blockchain-wide outage last week.
- Doodles are in the midst of an epic comeback story, with sales up 79.86% to $4.61m. Traders are sweeping grails on a daily basis as hype builds around the brand’s unique
image.
- Ethereum is your top blockchain by NFT sales volume, showing that traders' move away from ETH NFTs a few
months ago was just a temporary distraction. Sales are up 80.1% this week to $161.72m thanks to the massive $72m week the Pandora collection had.
- Solana has that dog in it, and while the blockchain outage last week sets the mainnet beta back 1 year, there’s clearly no slowing down trading. Sales are down just .076% with collectors
trading $51.76m worth of NFT.
- Bitcoin is a sleeping giant. I don’t even have to say it, you already know. Bitcoin’s $45.43m in sales is actually closer to $76m when we add in Quantum Cats and RSIC sales (both will
appear on site soon).
- Pudgy Penguins flipping the Bored Ape Yacht Club seems imminent, and right now just about 2 ETH separates the two collections. Recently, Pudgy Penguins holders received nearly $8k each in the Dymension token drop which is probably a factor in the Pudgy price movement. But more than that, Pudgy Penguins are my barometer for the NFT space, and this action tells me that traders are eager to speculate on NFTs.
- ERC404s are the hottest topic in NFTs right now, but we have a problem. One of the NFT space’s most respected devs, 0xQuit found a vulnerability in the token standard that will let bad actors steal NFTs. He along with a dream team of devs has now released a competing DN404 standard that I think will take over as the primary “fractionalized NFT” standard.
- We have seen massive sales in NFTs this week including 3 EtherRocks sales for 160 ETH, 180 ETH, and 200 ETH, Franklin’s
iconic gold Bored Ape #1726 for 275 ETH ($668,296.81), a Solana Boogle for 3,000 SOL ($325,767.95), multiple CryptoPunks for 79 - 99 ETH, and some grail Art Blocks Fidenzas for 68 and 70 ETH.
- Magic Eden announced that their new Ethereum marketplace with Yuga Labs will be live on Feb 27.
We don’t usually want to see red in the markets, but thanks to crypto’s red-hot week, the NFT market is back in the green. The value of NFTs has climbed 2.39%, with Ethereum’s 4.9% increase, Solana’s 4.49% gain, and Cardano’s 1.4% upswing leading the way. Polygon is the lone ecosystem in the red this week, losing 1.59% of
its value in the past 7 days.
Most believe that we’re in the next leg up for crypto, which makes the NFT market interesting. On the one hand, crypto prices up means NFT’s value goes up, but traders typically throttle back from trading while crypto is volatile. To sell NFTs they may need to lower their asking price, which could actually push the value of the market down.
We’re in for a very interesting spring
in NFTs, so keep your eyes fixed on CryptoSlam and the indexes to watch what’s happening in the markets live. Have a MEGA GM! NFL All Day - Playoff Heroes Hot Route
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TBA |
While some cryptocurrencies are designed to fluctuate due to supply and demand, stablecoins are exactly the opposite. Regardless of the demand for the coin, the value should always be locked into a set price, typically $1 USD. On rare occasions, the markets can be so volatile that a stablecoin can lose (or gain)
value. This is called de-pegging.
There’s much more to learn about stablecoins, and we’ll leave that for you to discover.
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