Sunday, August 14

Gaming tokens usher in the altcoin season

While Bitcoin remains in a cooling period after hitting its all-time high in early November and the decentralized finance sector (DeFi) in an apparent dry spell, gambling tokens appear to have taken the limelight as massive gains are seen across the industry. .

The Sandbox ‘SAND captured the headlines as it spearheaded the buzz for gaming tokens, with over 340% profit in the past month. Another is GALA, with a similar rebound of 300% in November. Such coins, including those found in the meta-versa sphere such as Decentraland’s MANA and Illuvium’s ILV, gained momentum after Facebook’s rebrand to Meta, suggesting that gaming tokens could be preceding a new altcoin season. .

An altcoin season is defined as when most of the major altcoins outperform Bitcoin (BTC) for a given period. For example, Cointelegraph Markets Pro uses two weeks on its algorithm and currently broadcasts a 40% reading in favor of altcoins. This means that altcoins have fared better than BTC over the two week period.

However, the top 10 cryptocurrencies by market capitalization had mixed results against BTC over the past month, and it is the leading tokens in the gaming sector that outperformed Bitcoin. SAND, of course, has been the trailblazer since October, but Axie Infinity Shards (AXS), Enjin Coin (ENJ), ILV, and Ultra’s UOS all made better gains compared to Bitcoin during November.

An investment in SIL in September would triple and one in SAND at least seven times. Overall, most of the tokens in the gaming sectors have appreciated by more than 100% against Bitcoin in the last month.

Why did gaming tokens take off?

The apparent popularity of gambling chips is due to the marriage of cryptocurrencies and gaming. The two are forging a new ecosystem where crypto enthusiasts and gamers intertwine. Most are already familiar with Axie Infinity, as the Pokémon-like game exploded in popularity due to its game-to-win (P2E) model. Initially, players breed monsters called “Axies” using experience points instead of in-game “currency”. The Soft Love Potion (SLP) token is not inserted until the launch of Community Alpha on December 19, 2019. From there, the game gained momentum, particularly among developing countries like the Philippines, as it provided a way to earn income amid last year’s pandemic.

Furthermore, non-fungible tokens also play an important role in the success of the sector. The NFT hype was very close to DeFi’s summer of 2020, and 2021 has been its breakout year. While artwork and collectibles got the most publicity early on, games like Axie Infinity and Dark Country muffled the industry in the May market recession.