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Metaverse Hit as NFT Tokens Fight Crypto Market Bears

Various gaming and NFT neighbor cryptocurrencies, including The Sandbox (SAND), axis infinity (AXS), Decentraland (MANA) and Gala (GALA) have suffered heavy losses in the last 24 hours.

The native token of the Metaverse platform, SAND, lost 9% of its value in the past day and is currently trading at $1.28. CoinMarketCap.

The token is the 41st largest in the market with a market cap of $1.5 billion. Today’s bearish action puts the token down 84% from its all-time high of $8.44 recorded in November 2021.

Elsewhere, AXS, the coin powering popular play-to-win game Axie Infinity, has dropped nearly 8% in the past 24 hours.

AXS hit an all-time high of $165.37, down 87% in November 2021 and is currently trading at $20.95. CoinMarketCap.

As for Decentraland’s native token, MANA is also running on the water, down nearly 9% in the past day. MANA is the in-game currency, allowing owners to purchase wearables for their avatars or obtain NFT-based LAND tokens in-game.

GALA, the 82nd largest cryptocurrency with a market cap of $561 million, has also lost 8.23% in the last 24 hours. GALA is the local icon for the NFT gaming ecosystem Gala.

The token is currently changing hands at $0.08, down 90% from the all-time high of $0.8367 recorded in November 2021. CoinMarketCap.

What causes game tokens to crash?

The primary driver behind today’s price action is probably the drop in NFT trading volume over the past week.

This trading volume In the NFT market, the largest market of its kind, it fell to levels before January 2021. Dune Analysis.

OpenSea monthly volume on Ethereum. Source: Dune Analysis.

By data analytics platform nansen, Axie Infinity’s revenues have also been falling in the last six months. Axie Infinity reported just $5,500 daily revenue from breeding and marketplace fees, This is a 99% decrease from the all-time high of $17.5 million per day recorded in August 2021.

Axie Infinity generates revenue through marketplace fees and breeding fees. A spawn fee of 0.5 AXS is charged when creating a new Axie creature and a 5.25% marketplace fee when trading Axies.

For Sandbox, overall secondary market land sales fell 54% in the first quarter of 2022 compared to Q4 2021. Sandbox is a virtual real estate platform that allows users to purchase digital land as NFTs.

Despite its growing user base of over 2 million users, Sandbox users find it difficult to keep on the platform. Her reported Only 7% of users keep their purchased land in Sandbox for more than a year, raising concerns about long-term interest in digital real estate.

About 10% of users sell their NFTs in the sandbox within the first 30 days of purchase, and 72% hold their NFT for a period of one to three months.

GALA has also taken a bad hit in the last six months, with interest in play-to-win games waning.

This trading activity Town Star, GALA Games’ NFT collection, dropped just over 11 Ethereum per day from an all-time high of 601.56 Ethereum recorded on December 24, 2021.

Meanwhile, bitcoin It is down 3.38% in the last 24 hours and is currently trading at $29,275. Ethereum It is changing hands at $1,968, down 4.43% in the last 24 hours.

disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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