The most obvious reason behind the price increase recorded by PANDORA over the weekend can be traced back to the significant whale activity.
PANDORA, the first token to use the Ethereum ERC-404 token standard, is on the move after a slowdown for a few weeks. The token’s price saw a significant surge over the weekend, rising around 50% to surpass $24,000 once again.
This recovery was caused by a series of factors, which are explained below.
How PANDORA Tokens Work
There are 10,000 ERC-20 tokens that are tied to a collection of 10,000 Replicant NFTs. If users have less than 1 PANDORA, they will still have the tokens in their wallet, but not a corresponding NFT. If they buy one of the NFTs, they will automatically receive 1 PANDORA token. If a user later sells a fraction of their token, the adjacent NFT will be burned (or permanently destroyed).
The developers behind PANDORA, known as “ctrl” and “Acme,” call this native splitting. But as with most things new in the cryptocurrency markets, the hybrid token is off to a rocky start.
Developer cygaar said it had been working on its own DN404 standard (which stands for Divisible NFT) and had established a working group for DN404 developers.
Whales Set Their Sights on PANDORA
On-chain data tracking website Lookonchain pointed to a series of whale transactions that took place in the days leading up to the price surge. The first whale accumulation was seen on February 20, when Lookonchain reported that a single whale had spent $4.89 million to purchase 244.24 PANDORA tokens.
The buying spree took place over several days, and by the time the whale was ready, they had an average entry price of $20,044.
A couple of days later, on February 23, the on-chain tracking platform reported that another whale was making its PANDORA play. This time, the new whale spent $1.37 million purchasing 71.45 PANDORA tokens at an average price of $19,268.
Together, these whales collected tokens worth just over $6 million. When the price finally reached $24,000, the first whale made profit margins of almost $1 million, while the second whale made a profit of over $330,000.
First Set of Land Incentives for Holders
Another factor that has helped boost the price of PANDORA during the week is the incentives in the form of airdrops that are announced for PANDORA holders.
Monarch, a project also based on the Ethereum ERC-404 token standard, announced in early February that it would be awarding tokens to PANDORA investors. It was announced that a total of 5% of the token supply will be allocated as an airdrop for PANDORA holders.
This incentive, coupled with the fact that PANDORA announced that it is preparing to release the latest version of the ERC-404 token standard, created demand for the token.
PANDORA Token Performance
Over the weekend, PANDORA price went from trending around $16,000 to rising 50% in one day to surpass the $24,000 level. However, this high price level could not be maintained for long as a sharp price drop would occur on February 23, apparently caused by the whales getting rid of their possessions.
Over the past day, the price of the token has continued to fluctuate between $16,000 and $17,000. At the time of writing, the altcoin is trading at $17,139, with losses of 5% in the last day, according to data from Dexscreener.
By Audy Castaneda
