© Reuters Despite market crash, crypto games and Metaverse tokens hold annual gains around 400%
Metaverse tokens and crypto games grew by more than 400% year-over-year, even after plunging most of the market and leading to a drop of more than 80%.
According to Kraken, the leading gains are Decentraland’s MANA (up 867%), Sandbox’s SAND (up 470%), AXS do (up 511%) and Stepn’s GMT (up 746%). Intelligence and CoinGecko’s May 2022 Market Report.
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It’s worth noting that these are annual percentages. That’s because, the last time the market fell, the prices of all assets plummeted, some as much as 80%, as mentioned above.
Metaverse tokens can be used to pay fees, buy land, and participate in governance.
The #NFT craze of 2021 has not only attracted mainstream attention to digital art investment, but has also popularized the crypto metaverse. Kraken Intelligence’s report takes a closer look at how the crypto metaverse will change the way we communicate: https://t.co/kjrf6Pu8yg pic.twitter.com/YHpljpBJR9
— Kraken Exchange (@krakenfx) June 7, 2022
“The #NFT craze of 2021 has not only brought a lot of attention to digital art investing, but it has also popularized the crypto metaverse. Kraken Intelligence report takes a closer look at how the crypto metaverse will change the way we communicate: http://blog.kraken .com/post/14243/the-metaverse-an-inflection-point/”
The second-highest category by year-over-year revenue was exchange tokens, up 6%.
During the same period, all other categories saw negative price movements, ranging from -13% for (BTC) to -72% for Decentralized Finance or DeFi.
Popularity of the Metaverse
Blockchain-based games using non-fungible tokens (NFTs) and the Metaverse platform are still very popular in the first six months of 2022.
According to decentralized application tracker DappRadar, the number of users of these games has remained at around 1 million per day despite falling prices across the market.
Kraken’s report noted that while the number of daily users was stable in May, “NFT transaction volumes dropped significantly, with daily transaction volumes down -87.1%.
All categories tracked by the Kraken report, including Metaverse and exchange tokens, have had negative returns over the past 30 and 90 days.
The Metaverse token has been one of the biggest losers over the past 30 days, down 42%.
Despite the short-term price action, money is pouring in to fund the industry. DAppRadar’s Q1 Gaming Report states that $2.5 billion was raised in the first quarter of 2022 to support blockchain gaming and the Metaverse project.
Investors are eager to support gaming, as 52% of blockchain activity comes from gaming DApps, the report said:
“At this rate, game monetization and Metaverse-related projects will add $10 billion this year to continue building the future of the industry.”
Tier 1 tokens such as SOL de and de led the decline, down 53% and 43% over the past 90 days and 30 days, respectively.
Bitcoin and Ether() saw relatively small losses compared to altcoins over the three time frames measured by Kraken.