Metaverse Tokens Defy The Trend As Cryptocurrency Markets Continue To Plummet.

June 10, 2022 - Around 3 mins mins to read

According to Kraken research, the only sectors that witnessed year-over-year increase were the metaverse and exchange tokens.

Metaverse Tokens Defy The Trend As Cryptocurrency Markets Continue To Plummet.

According to a new research, the digital currencies that fuel the metaverse are up 395% in the last year, an outliers in a broader terrible crypto decline.

Popular projects The Sandbox, Decentraland, Sommium Space and Voxels are among the leaders in user activity, according to the report by Kraken Intelligence and CoinGecko.

Decentraland’s MANA is up 41%, The Sandbox’s SAND is up 470%, Axie Infinity’s Axie Infinity Shards (AXS) is up 511%, and Stepn’s GMT is up 746%.

Despite the fact that May saw negative price movements across the crypto board, especially for bitcoin (BTC) and ether (ETH), metaverse tokens had the highest level of volatility of any sector.

NFTs, which play an important part in blockchain-based gaming and the metaverse as a whole, also showed flat daily usage amid a big reduction in May, with daily volume decreasing 87.1%, according to the report.

The NFT comeback is largely responsible for the year-over-year performance of metaverse tokens, which can be used to buy digital land, NFTs, and participate in governance.

The Sandbox’s digital economy reported $473,665,766 in cumulative NFT sales volume and three million registered wallet users.

The metaverse, according to Sebastien Borget, chief operating officer of the Animoca-owned platform, is “an unstoppable digital nation in the making that already brings together entertainment, fashion, gaming, music, and art, offering long-term perspectives through clear utility for NFTs.”

He noted that the continuous demand for land from global brands from Hong Kong, Dubai, and Korea that are acquiring NFT avatars and participating in play-and-earn events is the reason the metaverse and tokens like as SAND have outperformed crypto more widely over the past year.

Decentraland, an Ethereum-based metaverse, has the second-highest cumulative NFT sales volume in the first quarter, at $216,471,162, trailing only The Sandbox.

According to Giovanna Graziosi Casimiro, events producer at the Decentraland Foundation and head of Metaverse Fashion Week, increased trading of virtual land plots is fueling growth in Decentraland.

“Wearables represent a medium of self-expression and identification, propelling a unique creator’s economy and ecosystem,”

She described Metaverse Fashion Week, which Decentraland held in March, as “inspired the entrance of legacy, world-renowned fashion brands into our marketplace and expanded the discussion on NFTs as bridges between the physical and digital.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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