Gaming tokens market reaches over 30 Billion in market capitalization what is driving this surge
What is propelling the gaming tokens market cap past $30 billion, and which tokens are leading this upward trend?
Gaming crypto tokens are currently enjoying a surge in popularity, igniting enthusiasm among traders with a wave 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, as reported by CoinMarketCap.
So, what’s really happening in this space?
Notcoin’s Remarkable Growth
At the forefront of this surge is Notcoin (NOT), which has witnessed an astonishing 135% increase in value, now trading at $0.02187.
Notcoin one-week price chart | Source: CoinMarketCap
With this surge, Notcoin’s market cap has reached $2.24 billion, firmly positioning it among the top 50 cryptocurrencies by market cap.
With 24-hour trading volumes exceeding $1.8 billion, it also ranks 9th among the most traded crypto assets.
A significant factor driving Notcoin’s growth is its integration with Telegram. This partnership enables Telegram’s extensive 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 participate 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 more than 30% increase in the last week and a surge of over 64% in the past month, trading at $0.000315.
FLOKI one-week price chart | Source: CoinMarketCap
The recent boost in Floki’s value can be attributed to a move by the crypto trading firm DWF Labs, who announced 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 when DWF Labs purchased $10 million worth of FLOKI tokens, resulting in a 50% price increase the following week.
The Floki team is also 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 initiative and provide the necessary liquidity for growth.
The Buzz in the Crypto Gaming Market
The crypto gaming market is abuzz with excitement, fueled by recent developments and significant investments.
One notable move is the Xai Foundation’s collaboration with venture capital firm Outlier Ventures to launch the Xai Tokenomics Bootcamp, aimed at integrating traditional Web2 developers into the crypto world.
This bootcamp is designed 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.
The positive momentum in the crypto market in the first quarter of 2024, following the approval of spot Bitcoin ETFs in the U.S., has revitalized investor sentiment.
This optimism has extended to the Web3 gaming sector, with investments reaching $288 million in the first quarter and soaring to $988 million in April, the highest monthly investment since January 2021.
Big players like a16z, Bitcraft Ventures, and Ubisoft Studios are pouring capital into this sector, demonstrating their confidence in the future of Web3 gaming.
The current excitement in the market is reminiscent of early 2021 when emerging technologies like NFTs and DeFi protocols generated significant interest. What’s fueling the buzz?
Decoding the Excitement: Ethereum’s Account Abstraction and Layer-3 Solutions
The current buzz surrounds 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 allowing familiar login methods like email or Google accounts. Additionally, it introduces sponsored transactions to reduce gas fees.
Layer-3 solutions, or application-specific blockchains, make transactions faster and cheaper. When combined with Account Abstraction, these technologies promise a seamless, free-to-play gaming experience that rivals, if not surpasses, traditional Web2 games.
In conclusion, the prevailing trends suggest that the ongoing bull market may also bring gains to the crypto gaming market, potentially leading to further growth in the coming days. However, it is important to trade wisely and avoid investing more than you can afford to lose.
Disclosure: This article is for informational purposes only and does not constitute investment advice. The content presented here is intended for educational purposes.
