In the midst of altcoin crash, Metaverse tokens increases 400% year on year
According to a new report from Kraken Intelligence, Metaverse tokens were one of just two crypto categories to have a year-on-year price rise.
Metaverse tokens have surpassed every other crypto category in the present bear market, rising almost 400% year on year.
According to statistics from Kraken Intelligence and CoinGecko’s May 2022 market analysis, Decentraland (MANA) is up 41%, Sandbox (SAND) is up 470%, Axie Infinity (AXS) is up 511%, and STEPN (GMT) is up 746%. Tokens in the Metaverse can be used to pay fees, purchase land, and take part in administration.
The next major category for year-on-year growth was exchange tokens, which rose by 6%. In the same time span, all other categories experienced negative price movement, ranging from -13% for Bitcoin to -72% for DeFi.
So far in 2022, nonfungible tokens (NFT) and Metaverse platforms have been extremely popular in blockchain-based gaming.Despite falling market prices, usership in those games has remained stable at around 1 million per day, as per data from decentralized app (Dapp) tracker DappRadar.
Although daily usership remained stable in May, “NFT volume saw a large decrease with daily volume dropping 87.1%,” according to the Kraken report.
Over the last 30 and 90 days, every category analyzed by Kraken’s report, including Metaverse and exchange tokens, had negative returns. Metaverse tokens have dropped 42% in the last 30 days, with the highest volatility of 173%.
Money is flowing in to finance the sector, despite the short-term price movement. According to DAppRadar’s Q1 games report, $2.5 billion was raised in the first quarter of 2022 to support blockchain games and Metaverse ventures. Game DApps accounted for 52% of all blockchain activity, as per the report, and investors were ready to fund them:
“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) were the losers, dropping 53% and 43% in the last 90 days and 30 days, respectively.
Bitcoin (BTC) and Ethereum (ETH) experienced comparatively minor losses when compared to altcoins across all three time frames tracked by Kraken.
