While Bitcoin is still chilling after hitting an all-time high in early November, and the decentralized financial sector (DeFi) seems to be going through a period of drought, gaming tokens seem to be shedding light as the entire industry is seeing significant growth. …
Sandbox’s SAND made headlines as it sparked enthusiasm for game codes, recording over 340% gains over the past month. The other is GALA, with a similar 300% rise in November. These coins, including those found in the metaverse such as MANA Decentraland and ILV Illuvium, are gaining traction following a repurposing of Facebook’s meta, suggesting that game tokens may predate a new altcoin season.
Altcoin season is defined as the period when most of the top digital currencies outperform Bitcoin (BTC) for a specific period of time. For example, Cointelegraph Markets Pro spends two weeks on its algorithm and is currently sending 40% of the readings in favor of altcoins. This means that altcoins have outperformed BTC within a two week period.
However, the top 10 cryptocurrencies by market cap have shown mixed results compared to BTC over the last month, the leading token in the gaming sector that has surpassed Bitcoin. SAND has certainly been the leader since October, but Axie Infinity Shards (AXS), Enjin Coin (ENJ), ILV, and UOS Ultra have seen more gains over Bitcoin during November.
In September, we are investing again in ILV more than three times, and in SAND – at least seven times. Overall, most tokens in the gaming sector have been valued at over 100% over the past month compared to bitcoins.
Why did the game code work?
The obvious popularity of the gaming token is associated with the alliance of cryptocurrencies and games. The two are creating a new ecosystem that mixes crypto enthusiasts and gamers. Most people already know about Axie Infinity that Pokémon-like games have skyrocketed in popularity thanks to their commercial model (P2E). First of all, players raise monsters called “axes” using experience points instead of “currency” in the game. The Smooth Love Potion (SLP) token was not introduced until the Community Alpha release on December 19, 2019. From that point on, the game began to gain traction, especially among developing countries such as the Philippines, as it made it possible to make money. last year’s pandemic.
In addition, irreplaceable tokens also play a role in the success of the sector. The NFT hype was hot in the wake of DeFi in the summer of 2020, and 2021 was the year of the outbreak. While art and collectibles received the most publicity early on, games like Axie Infinity and Dark Country are an intermediate industry amid the decline of the corn market.
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NFTs introduce an element of ownership into games. For Axie Infinity, it could be Axies, which are prized for their rarity and aesthetics, or in-game assets in the game. Battle of the Guardians has much of the same concept, while for something like Splinterlands it’s trade cards. Apparently, the ability to validate unique properties and unique digital assets is what has exploded a new dynamic in games.
attraction of investments
As the popularity of the game icon continues to grow, more and more investments are being made in the room. According to BlockchainGamerBiz, in 2021, blockchain companies participating in games raised about $ 3.7 billion, which is 414% more than in 2020.
Specifically, Forte received $ 725 million in a Series B funding round led by Sea Capital and Kora Management. Forte plans to expand its range of products and services and bring more game publishers to its blockchain gaming platform. Fantasy soccer game Sorare also received a total of $ 680 million in September, raising its value to $ 1.2 billion.
OpenSea, the NFT marketplace that deals with gaming resources and other digital assets, is also among the unicorns in space. Agreements like these indicate the growing growth of this class of tokens.
The future of blockchain gaming
The gaming segment in the broader cryptocurrency market remains relatively small. The best gaming tokens can have a market capitalization of no more than $ 21 billion, which is very small compared to bitcoins. This means that the dominance of the sector continues as the market can change rapidly, especially since games by their very nature can come and go. The debate, however, is whether the “play to make money” model can be of interest to everyone.