Metaverse grows 400% year on year despite the altcoin bloodbath

A new report from Kraken Intelligence reveals that Metaverse tokens were one of only two cryptocurrency categories that have seen price growth year over year.

Metaverse tokens are significantly outpacing all other cryptocurrency categories in the current bearish state, up nearly 400% year-over-year.

According to data from the report, the main gains are Decentraland (MANA) up 41%, Sandbox (SAND) up 470%, Axie Infinity (AXS) up 511% and STEPN (GMT) up 746% . CoinGecko. Metaverse tokens can be used to pay taxes, buy land, and participate in governance.

The second highest category for year-over-year earnings was that of exchange tokens which saw a 6% increase. All other categories saw negative price action over the same period ranging from -13% for Bitcoin to -72% for DeFi.

Kraken Intelligence reveals that Metaverse tokens have increased by 400% year over year

Blockchain-based games using non-fungible tokens (NFTs) and Metaverse platforms have remained extremely popular throughout 2022 so far. Despite falling market prices, usage of these games remained steady at around 1 million users per day according to data from decentralized application tracker (Dapp) DappRadar.

The Kraken report pointed out that although May saw stable daily usage, “NFT volume recorded a sharp decline with a -87.1% drop in daily volume.”

Each category tracked by the Kraken report, including Metaverse and exchange tokens, has experienced negative returns over the past 30 and 90 days. Metaverse tokens have been among the worst losers over the past 30 days, dropping 42%, with by far the highest volatility of 173%.

Despite the short-term price developments, money is pouring in to finance the sector. DAppRadar’s Q1 Gaming Report found that $ 2.5 billion was raised to support blockchain games and Metaverse projects during the first quarter of 2022. According to the report, investors were eager to support gaming because the 52% of all blockchain activity came from gaming DApps:

At this rate, gaming-to-win and metaverse-related projects will add $ 10 billion this year to continue building the industry’s future.

Tier 1 tokens like Solana (SOL) and Cardano (ADA) have led the underdogs as they have dropped 53% over the past 90 days and 43% over the past 30 days.

Bitcoin (BTC) and Ethereum (ETH) recorded relatively modest losses against altcoins in all three time periods as measured by Kraken.

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