Metaverse tokens up 400% year on year despite altcoin bloodbath

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Meta­verse tokens are vast­ly out­per­form­ing every oth­er cryp­to cat­e­go­ry in the cur­rent bear­ish con­di­tion, up by near­ly 400% year-on-year.

Lead­ing the gains are Decen­tra­land (MANA) up 41%, Sand­box (SAND) up 470%, Axie Infin­i­ty (AXS) up 511%, and STEPN (GMT) up 746% accord­ing to data from the May 2022 mar­ket report by Krak­en Intel­li­gence and CoinGecko. Meta­verse tokens can be used to pay fees, buy land, and par­tic­i­pate in governance.

The next high­est cat­e­go­ry for year-on-year gains were exchange tokens that saw a 6% increase. All oth­er cat­e­gories saw neg­a­tive price action in the same time peri­od rang­ing from ‑13% for Bit­coin to ‑72% for DeFi.

Krak­en Intel­li­gence reveals that Meta­verse tokens are up 400% year-on-year

Blockchain-based gam­ing using non­fun­gi­ble tokens (NFT) and Meta­verse plat­forms has remained tremen­dous­ly pop­u­lar through­out 2022 so far. Despite slump­ing prices across the mar­ket, user­ship among those games has remained con­sis­tent at about 1 mil­lion users per day accord­ing to data from decen­tral­ized app (Dapp) track­er DappRadar. 

The Krak­en report point­ed out that although May saw flat dai­ly user­ship, “NFT vol­ume saw a large decrease with dai­ly vol­ume drop­ping ‑87.1%.”

Every cat­e­go­ry tracked by Kraken’s report, includ­ing Meta­verse and exchange tokens, expe­ri­enced neg­a­tive returns over the past 30 days and 90 days. Meta­verse tokens were among the worst losers over the past 30 days, drop­ping 42%, with by far the high­est volatil­i­ty at 173%. 

Despite the short term price action, mon­ey is pour­ing in to fund the sec­tor. DAppRadar’s Q1 games report not­ed that $2.5 bil­lion was raised in sup­port of blockchain games and Meta­verse projects in the first quar­ter of 2022. Investors were eager to back games accord­ing to the report because 52% of all blockchain activ­i­ty came from game DApps:

“At this pace, play-to-earn and Meta­verse-relat­ed projects will add $10 bil­lion this year to keep build­ing the future of this industry.”

Relat­ed: Glob­al Web3 meta­verse and tax ini­tia­tives con­tin­ue in the face of a mar­ket meltdown

Layer‑1 tokens such as Solana (SOL) and Car­dano (ADA) led the losers as over the past 90 days, they are down 53% and down 43% over the past 30 days. 

Bit­coin (BTC) and Ethereum (ETH) saw rel­a­tive­ly mod­est loss­es com­pared to alt­coins over all three time frames mea­sured by Kraken. 



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