Metaverse tokens are vastly outperforming any other category of cryptocurrencies in the current bearish environment, up nearly 400% year-on-year.
Growth leaders are Decentraland (MANA) with 41% growth, Sandbox (SAND) with 470% growth, Axie Infinity (AXS) with 511% growth and STEPN (GMT) with 746% growth according to May 2022 market data . report from Kraken Intelligence and CoinGecko. Metaverse tokens can be used to pay fees, purchase land, and participate in governance.
#NFT The boom of 2021 not only brought digital art investment into the spotlight, but also popularized the crypto-metaverse.
— Kraken Exchange (@krakenfx) June 7, 2022
The next largest year-over-year revenue category was exchange tokens, which rose by 6%. All other categories saw negative price action over the same period, ranging from -13% for Bitcoin to -72% for DeFi.
Blockchain-based games using non-fungible tokens (NFTs) and Metaverse platforms have so far remained extremely popular throughout 2022. Despite the sharp drop in prices in the market, the number of users of these games remains constant at about 1 million users per day, according to decentralized application (Dapp) data. tracker DeppRadar.
Kraken’s report indicated that while daily user numbers remained unchanged in May, “NFT volume declined significantly, with daily volume down -87.1%.”
Every category tracked in the Kraken report, including Metaverse and exchange tokens, has shown negative returns over the last 30 and 90 days. Metaverse tokens have been among the biggest losers in the past 30 days, falling 42%, with the highest volatility being 173%.
Despite the short-term price movement, money is pouring into financing the sector. Games of the first quarter DAppRadar report noted that $2.5 billion was raised in the first quarter of 2022 to support blockchain games and Metaverse projects. According to the report, investors were eager to support gaming because 52% of all blockchain activity was in gaming DApps:
“At this rate, game-to-earn projects and Metaverse-related projects will add $10 billion this year to continue building the future of this industry.”
Global Web3 Metaverse and Tax Initiatives Continue in Face of Market Crash
Tier 1 tokens such as Solana (SOL) and Cardano (ADA) have led the way in losing as they have fallen 53% in the last 90 days and 43% in the last 30 days.
Bitcoin (BTC) and Ethereum (ETH) suffered relatively modest losses compared to altcoins over all three time periods measured by Kraken.
Credit : cointelegraph.com