Despite altcoin carnage, Metaverse token still grows 400% year-over-year

Despite altcoin carnage, Metaverse token still grows 400% year-over-year

In the current bearish scenario, the Metaverse token has outperformed all other cryptocurrency classes by a wide margin, up nearly 400% year-over-year.

Leading gains, according to Kraken Intelligence’s May 2022 Market Report, are Decentraland (MANA) at 41%, Sandbox (SAND) at 470%, Axie Infinity (AXS) at 511%, STEPN (GMT) at 746% and CoinGecko. Metaverse tokens can be used to pay fees, buy land, and participate in governance.

The #NFT craze of 2021 has not only brought a lot of attention to digital art investing, but also popularized the crypto metaverse.

Kraken Intelligence report takes a closer look at how the crypto metaverse will change the way we communicate: https://t.co/kjrf6Pu8yg

— Kraken Exchange (@krakenfx) June 7, 2022

The next category with the largest year-over-year revenue growth was exchange tokens, which rose 6%. During the same period, all other categories saw negative price movements, ranging from -13% for Bitcoin to -72% for DeFis.

So far, blockchain-based games using non-fungible tokens (NFTs) and the Metaverse platform remain very popular throughout 2022. According to data from decentralized application tracker (Dapp) DappRadar, the number of users of these games has remained at around 1 million per day despite falling prices across the market.

Kraken’s report noted that while the number of daily users was stable in May, “NFT transaction volumes dropped significantly, with daily transaction volumes down -87.1%.

All categories tracked by the Kraken report, including Metaverse and exchange tokens, have had negative returns over the past 30 and 90 days. The Metaverse token was one of the biggest dropers in the past 30 days, down 42%, with the highest volatility at 173%.

Despite the short-term price action, money is pouring in to fund the industry. DAppRadar’s Q1 Gaming Report states that $2.5 billion was raised in the first quarter of 2022 to support blockchain gaming and Metaverse projects. According to the report, investors are eager to support gaming as 52% of blockchain activity comes from gaming DApps:

“At this rate, making money from games (P2E, or making money from games) and Metaverse-related projects will add $10 billion this year to continue building the future of this industry.”

Tier 1 tokens like Solana (SOL) and Cardano (ADA) have been among the top losers over the past 90 days, down 53% and 43%, respectively, over the past 30 days.

Bitcoin (BTC) and Ethereum (ETH) saw relatively small losses compared to altcoins on the three time frames measured by Kraken.

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