Metaverse tokens see a rise despite altcoin evisceration
It has been a bit of a bloodbath lately when it comes to altcoins. The late part of Spring and early part of Summer has shown a complete turnaround from what was shown last year. Blockchains like Solana have taken a terrible turn in price with a 53% drop as the chain continues to grapple with outages and an utter lack of confidence in its ability to fix these issues by the community.
The crypto drop has been terrible with many coins even bitcoin suffering massive losses, the unpegging of the US dollar to one altcoin led to many losing thousands upon thousands in dollars-some of those life savings, and the leader of that altcoin is under scrutiny for what appears to be shady business practices. In short, it has not been a good run for altcoins in the first half of 2022.
As per a report by Kraken intelligence, though all of the terror and sadness that has been the crypto purge of 2022 metaverse tokens are thriving. So far metaverse tokens are one of the only two categories of crypto that have seen year-on-year growth. The tokens of metaverse projects quickly outperform any other token on the market that is currently very bearish. The tokens have seen a 400% rise yearly on average.
Of course, the leaders of these tokens are the ones that have been established such as MANA up 41%, SAND up 470%, AXS up 511%, and Stepn’s GMT have risen up 746%.
Behind metaverse, tokens are exchange tokens which have seen a 6% increase while other tokens such as BTC and ETH saw declines of 13% and 25% respectively. Defi has taken the hardest hit at a 72% drop.
With all of the losses in the crypto sphere metaverse, NFT, and blockchain gaming remains a favorable and popular ecosystem. For blockchain gaming, there is still a constant amount of players logging in to play to earn.
All of this being said there is still a decline in all sectors of crypto and web3. The Kraken report also states that there is a large decrease in the daily volume of NFT with a drop as high as 87% and every category including those of metaverse tokens experienced negative returns in the 30 and 90-day timeframe. Metaverse tokens still have a high 173% volatility and that is something to take note of still.
The negative information has not stopped the interest in the metaverse tokens at all with many investors pouring funds into any projects that are building in the web3 space. So far $2.5 billion has been raised to support blockchain gaming and metaverse projects with games being the biggest recipient of those funds. With the constant interest in the metaverse and gaming, the sector is tracked to add $10 billion to build on the future of the web3 industry.