Saturday, October 1

Illuvium hits new highs as interest in NFT-based blockchain games soars


The world of non-fungible tokens and blockchain games has seen immense growth and progress towards widespread adoption in 2021. Recently, the movement accelerated when a variety of celebrities and internet influencers jumped on the hype train buying collectibles. premium digital.

One project that has risen rapidly in value in the past two months as details about its ongoing development reach the public is Illuvium (ILV), an open-world fantasy battle game built on top of the Ethereum (ETH) blockchain. ).

ILV / USD 1-day chart. Source: CoinGecko

Data from CoinGecko shows that after hitting a low of $ 29.32 on June 22, the price of SIL soared 1.765% to record a new all-time high at $ 545.26 on August 13.

Three reasons for the tremendous price growth seen at SIL include the introduction of multi-asset participation features in the ILV protocol, the constant release of teaser clips and NFTs that provide insight into what the game will look like, and the overall strength of the sector. NFT. which has been gaining momentum since July.

Multiple Asset Stake Opportunities Increase Demand for Tokens

Decentralized finance and its ability to offer users and token holders a return on their investment has been one of the most successful trends in the cryptocurrency sector.

In an effort to capture some of this momentum, as well as improve the ILV token tokenomics, the Illuvum team inserted betting capabilities for ILV on June 30, and later expanded their capabilities to include other popular projects such as Axie Infinity (AXS) and Synthetix (SNX).

At the time of writing, AXS and SNX flash pools for betting are sold out, but ILV token holders can get a 39.77% return with flexible bets that can be withdrawn at any time, or 79.53% for those who are willing to lock their tokens in the protocol for 52 weeks.

Users who provide liquidity to the project on SushiSwap can achieve a return ranging from 283% to 566%, depending on the amount of time blocked.

Product advancements excite the community

A second reason for the increased attention and excitement that Illuvium has received over the last month has been the constant release of new project details and character graphics that have given community members an idea of ​​what the game will look like.

As part of their outreach efforts, the team has also designed custom characters for different influencers such as Crypto boy, Satoshi stacker and Clix.

This strategy of specialized NFTs for influencers helped generate interest in the project, as the influencers promoted Illuvium in their communities and gave them the opportunity to win one of the custom NFTs.

Related: Corporate brands target NFTs and adoption continues to skyrocket

NFT and blockchain gaming sector strength

A third reason for the growth seen in Illuvium has been the overall growth in the broader NFT- and blockchain-based gaming sectors, which have performed the best in the past two months.

Some of the rising stars of the summer include Axie Infinity, a blockchain-based trading and fighting game in which some players make enough money to pay for their monthly living expenses, and Audius, a decentralized music sharing and streaming protocol that enables transactions. direct between listeners. and creators converting songs to NFT.

Evidence of growing demand for NFT can be found in the daily transaction volume on OpenSea, the most popular market for NFT, which posted a record $ 3 billion sales volume for the month of August.

To add a bit of perspective, as of August 2 the total volume accumulated to date on OpenSea was $ 1.02 billion, which means that the volume observed during the month of August was almost three times greater than the total volume traded between the January 1 and August 2, 2021.

However, a word of caution is warranted right now, because the NFT sector has been known to reverse direction in the blink of an eye and send symbolic values ​​into a tailspin as traders rush towards the exits.

Recent examples of this include Alien Worlds (TLM) and MyNeighborAlice (ALICE), which saw significant price increases prior to the full launch of their products, only to have their values ​​collapse by more than 90% once published.

If the Illuvium protocol can avoid these pitfalls and deliver on its promise to become the first AAA-rated game on the Ethereum blockchain, ILV has the potential to see further price appreciation as the on-chain gaming industry of blocks is generalized.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.