The hybrid NFT crypto token, ERC404, known as Ethereum's experiment, has reportedly generated $87 million in total volume on decentralized exchanges (DEXs), while the figure for NFT marketplaces stands just below $1 million. ERC404 combines the characteristics of fungible tokens and NFTs to improve liquidity and trading flexibility.

Implemented through Replicants, an NFT collection, ERC404 pieces can be sold on NFT marketplaces like OpenSea or Blur, as well as on DEXs like UniSwap. Interest in Replicants has surged, with prices rising from 0.38 ETH to 4.26 ETH, placing the collection in the top 15 NFT collections with a diluted value of $88 million.

However, being an experimental token standard hosted by Ethereum, ERC404 has not undergone a full external audit yet. Its primary benefits are increased liquidity and flexibility for users to trade, addressing the traditionally illiquid nature of the NFT ecosystem.

Despite its advantages, ERC404 has certain drawbacks, such as the destruction of the NFT linked to fungible tokens when selling on a DEX, leading to an increase in volume on decentralized exchanges.

Blur has integrated the experimental token standard, and upcoming NFT projects like BananaGun are also supporting it.

As for the rise in the price of Replicants, it can be attributed to the value of ETH, which is trading at $2,357.89 at the time of writing, reflecting a recent surge. The NFT sector remains robust, with Farcaster NFTs reportedly selling for thousands of dollars, primarily due to users' spending on Farcaster IDs.

ERC404 stands out for combining the characteristics of non-fungible ERC721 and fungible ERC20 tokens, allowing users to bypass waiting to list their NFTs by selling fungible tokens on DEXs and leveraging the platform's liquidity. However, selling a fungible token on a DEX destroys the linked NFT.