Market cap of gaming tokens surpasses 30 billion what is driving this growth
What is propelling the gaming tokens market cap above $30 billion, and which tokens are leading this upward trend?
The world of gaming crypto tokens is currently basking in the spotlight, igniting excitement among traders with a flurry of positive market sentiments.
In the past week, the market cap for gaming crypto tokens has surged by almost 11%, surpassing $30 billion as of June 6, as reported by CoinMarketCap.
So, what exactly is happening in this realm?
Notcoin’s Remarkable Ascent
At the forefront of this surge is Notcoin (NOT), which has witnessed a staggering 135% increase in value, now trading at $0.02187.
Notcoin one-week price chart | Source: CoinMarketCap
During this upsurge, Notcoin’s market cap has skyrocketed to $2.24 billion, firmly establishing it among the top 50 cryptocurrencies by market cap.
With trading volumes exceeding $1.8 billion in the last 24 hours, it currently ranks 9th among the most traded crypto assets.
A significant factor driving Notcoin’s surge is its integration with Telegram. This partnership enables Telegram’s extensive user base—comprising 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 it 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 growth of over 30% in the past week and surged by more than 64% over the last month, currently trading at $0.000315.
FLOKI one-week price chart | Source: CoinMarketCap
The recent surge in Floki’s value can be credited to a move by the crypto trading firm DWF Labs. They announced plans to acquire $12 million worth of FLOKI tokens from the open market and the Floki treasury.
https://twitter.com/el_crypto_prof/status/1798114366887243883
This decision 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 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 bolster this initiative and provide the necessary liquidity for growth.
The Vibrant Crypto Gaming Market
The crypto gaming market is abuzz with excitement, fueled by recent developments and significant investments.
A notable move is the Xai Foundation’s collaboration with venture capital firm Outlier Ventures to launch the Xai Tokenomics Bootcamp, aiming to integrate traditional Web2 developers into the crypto world.
This bootcamp is designed to assist developers in transitioning from conventional gaming models to blockchain-based ones, emphasizing game asset ownership, token usage, player rewards, and enhanced security.
Moreover, the first quarter of 2024 has been favorable to the crypto market. The resolution of the crypto industry’s longstanding battle with the SEC and the approval of spot Bitcoin ETFs in the U.S. have reignited investor confidence.
This positive momentum has spilled over into the Web3 gaming sector. According to DappRadar, investments in the first quarter totaled $288 million, with April witnessing a surge to $988 million, the highest monthly investment since January 2021.
Furthermore, the average unique active wallets for gaming dApps nearly reached 3 million daily in April, a record-breaking figure representing almost 28% of the entire dApp industry.
Major players like a16z, Bitcraft Ventures, and Ubisoft Studios are pouring capital into this sector, showcasing their strong belief in the future of Web3 gaming.
The Current Buzz: Ethereum’s Account Abstraction and Layer-3 Solutions
The current buzz centers around Ethereum’s (ETH) innovative technology known as 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. Additionally, it introduces sponsored transactions, reducing gas fees.
Layer-3 solutions, also referred to as application-specific blockchains, accelerate and streamline transactions, making them more cost-effective. When combined with Account Abstraction, these technologies promise a seamless, free-to-play gaming experience that rivals, if not surpasses, traditional Web2 games.
Therefore, the prevailing trends suggest that the ongoing bull market may extend its gains to the crypto gaming sector, potentially leading to further growth in the days ahead. Nevertheless, it is essential to trade prudently and avoid investing more than one can afford to lose.
Disclosure: This article is not intended as investment advice. The information provided is for educational purposes only.
