In spite of the Altcoin bloodbath, the Metaverse token surges up by 400% per year
Kraken Intelligence’s report reveals that Metaverse tokens were one of only two divisions of crypto that have seen price increases year after year. In the current bearish condition, Metaverse tokens are increasingly surpassing other crypto segments with an increase of about 400% per year.
According to data from Kraken Intelligence and CoinGecko’s 2022 market report, the leading gains are STEPN (GMT) up 746%, Axie Infinity (AXS) up 511%, Sandbox (SAND) up 470%, and Decentraland (MANA) up 41%. Metaverse tokens can be used in different ways – they can be used to pay fees, buy land, and participate in governance.
The second-highest category that saw a % increase was exchange tokens. All other categories have seen negative price action ranging from -13% for Bitcoin to -72% Defi.
Blockchain-based gaming, which uses Non-fungible tokens (NFT) and Metaverse platforms, has been hugely popular throughout the year 2022 and to date. According to the decentralised app (Dapp) tracker DappRadar, the games are compatible with around 1 million users per day, despite the falling prices across the market.
The Kraken report noted that although the number of flat daily users in May,’ NFT volume saw a large decrease with daily volume dropping -87.1%”.
Each section tracked by Kraken’s report, including Metaverse and Exchange Token, has experienced negative returns in the last 30 days and 90 days. Metaverse tokens were among the worst victims in the last 30 days, down 42%, with the highest ever 173% volatility.
Despite the short-term pricing measures, funds are being poured into the sector. DAppRadar’s Q1 Games report states that $2.5 billion was raised in the first quarter of 2022, favouring blockchain games and Metaverse projects. Investors were reportedly interested in backing the games because 52% of all blockchain activity came from games 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.”
Layer-1 tokens like Solana (SOL) and Cardano (ADA) have led to losers in the last 90 days and are down 53% and 43% in the last 30 days.
Bitcoin (BTC) and Ethereum (ETH) have seen relatively little damage compared to Altcoin compared to the three-time frames measured by Kraken.
