What is driving the gaming tokens market cap to surpass 30 Billion
What is propelling the gaming tokens market cap past $30 billion, and which tokens are leading this upward trend?
The gaming crypto tokens are currently basking in the spotlight, igniting excitement among traders with a surge of positive market sentiments.
In the past week, the market cap for gaming crypto tokens has seen a remarkable 11% increase, surpassing $30 billion as of June 6, according to CoinMarketCap.
What’s the real deal behind this surge?
Notcoin’s Remarkable Growth
At the forefront of this surge is Notcoin (NOT), which has witnessed an astounding 135% surge in value, currently trading at $0.02187.
Notcoin’s market cap has skyrocketed to $2.24 billion, solidifying its position among the top 50 cryptocurrencies by market cap.
With 24-hour trading volumes exceeding $1.8 billion, Notcoin also ranks 9th among the most traded crypto assets.
A key driver behind Notcoin’s ascent is its collaboration with Telegram. This partnership enables Telegram’s vast user base—over 1.5 billion registered users and more than 800 million active users—to easily access and utilize Notcoin.
What sets Notcoin apart is the Play-to-Earn (P2E) model introduced on Telegram. Users can partake in various games and tasks directly within the Telegram app and earn Notcoin as a reward.
Floki’s Steady Climb
Following closely behind Notcoin is Floki (FLOKI), which has experienced a 30% growth in the past week and surged by over 64% in the last month, trading at $0.000315.
The recent uptick in Floki’s value can be attributed to DWF Labs, a crypto trading firm, announcing plans to acquire $12 million worth of FLOKI tokens from the open market and the Floki treasury.
This move follows a previous commitment in February 2024, where DWF Labs purchased $10 million worth of FLOKI tokens, resulting in a 50% price increase the following week.
The Floki team is gearing up to launch the mainnet version of its flagship utility product, the Valhalla metaverse game, later this year. DWF’s substantial investments are expected to support this venture and provide the necessary liquidity for growth.
The Crypto Gaming Market Buzz
The crypto gaming market is abuzz with excitement, fueled by recent developments and significant investments.
The Xai Foundation’s major initiative to integrate traditional Web2 developers into the crypto realm is a prime example. They are partnering with venture capital firm Outlier Ventures to launch the Xai Tokenomics Bootcamp.
This bootcamp aims to assist developers in transitioning from traditional gaming models to blockchain-based ones, focusing on game asset ownership, token usage, player rewards, and enhanced security.
Additionally, the first quarter of 2024 has been favorable to the crypto market, with the approval of spot Bitcoin ETFs in the U.S. reinvigorating investor sentiment after the crypto industry’s prolonged battle against the SEC.
The positive momentum has spilled over into the Web3 gaming sector. According to DappRadar, investments in the first quarter hit $288 million, with April seeing investments surge to $988 million, the highest monthly investment since January 2021.
Notably, big players like a16z, Bitcraft Ventures, and Ubisoft Studios are injecting funds into this space, showcasing their strong belief in the future of Web3 gaming.
This surge in investment echoes the early excitement of 2021 when emerging technologies like NFTs and DeFi protocols garnered significant interest. So, what’s driving this buzz?
Unraveling the Buzz: Ethereum’s Account Abstraction and Layer-3 Solutions
The current buzz centers around Ethereum’s (ETH) new technology called Account Abstraction and the emergence of Layer-3 blockchain solutions.
Account Abstraction replaces traditional wallets with programmable smart contracts, enhancing user experience by eliminating the need for seed phrases and enabling familiar login methods like email or Google accounts. It also introduces sponsored transactions, reducing gas fees.
Layer-3 solutions, or application-specific blockchains, expedite transactions and lower costs. Coupled with Account Abstraction, these technologies promise a seamless, free-to-play gaming experience that rivals, if not surpasses, traditional Web2 games.
Therefore, the overarching trends suggest that the ongoing bull market may extend gains to the crypto gaming market, potentially leading to more upswings in the days ahead. Nonetheless, trade prudently and never invest more than you can afford to lose.
Disclosure: This article is not intended as investment advice. The content and materials provided here are for educational purposes only.
