In the current market conditions, crypto currencies related to the metaverse are doing well. They are up an average of +400% year-on-year, well ahead of Bitcoin (BTC) and Ether (ETH)
Up 400% year-on-year
Cryptos related to the metaverse are far outperforming all other crypto categories in current market conditions, as they are up nearly 400% year-over-year.
These include Sandbox (SAND), which is up +470% year-on-year, Axie Infinity (AXS), up 511%, and STEPN (GMT), up 746%, according to data from Kraken Intelligence and CoinGecko’s May 2022 market report.
In contrast, the promising Decentraland (MANA) is up just +41% year-on-year, far less than its direct competitors.
The NFT boom of 2021 has not only drawn mainstream attention to digital art investments, it 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
Cryptos in the metaverse can be used to pay fees, buy virtual land, and participate in events in the virtual world.
Crypto-currencies that are up very slightly year-on-year are tokens from exchange platforms such as Binance with its Binance Coin (BNB) and its stablecoin the Binance USD (BUSD), or Kucoin with the Kucoin Token (KCS).
Other cryptocurrency categories, notably the traditional Bitcoin (BTC) and Ether (ETH), posted negative year-on-year performances.
The biggest losses were in DeFi-linked crypto-currencies, which averaged a -72% year-on-year performance, according to the report.
The metaverse is still very popular
Despite the current downturn in all markets and the lack of interest in non-fungible tokens (NFTs), the world of the metaverse and its virtual games have remained very popular with users so far.
The number of users of these games has remained constant at around 1 million users per day, according to data from the decentralised application tracker (Dapp) DappRadar.
NFTs, however, are a different story. The daily trading volume of NFTs fell by 87.1% in May, according to Kraken’s report. This doesn’t stop NFT enthusiasts from being optimistic about the future, especially when you consider that the NFT market could be worth $13.6 billion by 2027.
Over the last 30 days and the last 90 days, cryptos linked to the metaverse are still suffering like all other cryptos, with a negative performance of -42% on average. This is still less than the overall market.
Money continues to flow into the metaverse sector, which is of great interest to investors from all over the world, even the biggest companies. Witness the recent investments by social networking giant Meta, which has claimed to be spending billions of dollars developing this universe, although it is not yet profitable.
DAppRadar’s Q1 Gaming Report states that $2.5 billion was raised to support blockchain games and metaverse-related projects in Q1 2022:
“At this rate, gaming and metaverse-related projects will add $10 billion this year to continue building the future of this industry. “
The metaverse industry still has a bright future ahead of it if these numbers are to be believed.
