Saturday, September 23, 2023

Metaverse Thrives amidst Altcoin Tragedy


According to a recent analysis from Kraken Intelligence, Metaverse tokens were one of just two crypto categories to have a year-on-year value rise. Metaverse tokens are surpassing almost every crypto group in the current weak market, increasing by roughly 400% every year.

As per statistics from Kraken and CoinGecko’s May 2022 market analysis, Decentraland went up by 41%, Sandbox increases by 470%, and Axie Infinity is up by 511%, as well as STEPN went up by up to 746%. Tokens in the Metaverse can be utilized to pay fees, purchase land, and engage in governance.

The second biggest category for year-on-year growth was exchange tokens, which increases by 6%. In the very same time span, many other categories had negative price movement. It varies from -13% for Bitcoin through -72% for DeFi.

As of now, blockchain-based gameplay employing nonfungible tokens and Metaverse networks maintains to be quite popular in 2022. Despite falling market values, greater priority within these games remains constant at around 1 million each day. This is according to the statistics tracker, DappRadar.

Basing it from Kraken’s study, while daily users were steady in May, NFT volume experiences a devastating reduction, with daily volume decreasing by -87%.

Throughout the last 30 and 90 days, each category that Kraken’s analysis studies, notably Metaverse and exchange tokens, suffers negative returns. Metaverse tokens were one of the biggest losers over the last 30 days. Their value went down to 42%, with 173%t instability.

Capital is Streaming into the Industry

Due to the short price movement, money is flooding into the market to finance it. According to DAppRadar’s Q1 games research, $2.5 billion was funded during the first quarter of 2022. Thus, this will help sponsor blockchain games as well as Metaverse initiatives. The research is saying that investors are willing to fund games since 52 percent of all blockchain operations come from game DApps. At this rate, play-to-earn and Metaverse initiatives will cost $10 billion in total. This will help them to continue shaping the industry’s growth.

Despite a tough micro and macroeconomic situation, creators were able to maintain blockchain gaming engagement. Security issues, such as the recent $500,000 breach on the Ronin Bridge, teach everyone that connectivity comes with a cost.

Simultaneously, the crisis in Ukraine and the poor profitability of the crypto market are hampering games’ steady expansion last year. Nevertheless, in comparison to the previous year, blockchain gaming activity surges to 2,000%. Game dapps evolve over time. Hence, the metaverse continues to present one of the most interesting prospects in the blockchain business.

Layer-1 tokens, including Solana and Cardano, lead the losses, falling 53% in the last 90 days and 43% in the last 30 days, respectively. Bitcoin and Ethereum suffer comparatively little losses when compared to altcoins across all three timescales tracked by Kraken.

Mary Santos
Mary Santos
Mary Santos has a degree in economics and after a successful career as an investment analyst, she found an interest in Cryptocurrency. Mary enjoys finding the latest scoop on crypto news.

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