Bitcoin’s drop to $40k causes gaming tokens to suffer a blow
The cryptocurrency market took a hit recently, causing gaming tokens to decline as Bitcoin approached the $40,000 mark. CoinGecko reported that gaming tokens experienced larger drops during this time.
Immutable’s IMX token dropped by 8% to $1.80, while Beam and Gala Games saw around a 7% decline. Axie Infinity’s AXS governance token fell over 6%, and its in-game SLP reward token dropped by 7%. The only token that didn’t experience a dip was Ronin, which saw a 34% increase in the past week, reaching a price of $2.32. It has now become one of the top 100 cryptocurrencies, reaching its highest value since February 2022 at $2.52 on Sunday.
These fluctuations in gaming tokens are representative of broader trends in the cryptocurrency market. According to a recent CoinShares report, there was a modest outflow of $21 million from digital asset investment products last week. At the same time, Bitcoin trading volumes reached $11.8 billion, which is seven times the average weekly volume seen in 2023.
The significant trading volumes in Bitcoin have a ripple effect on the wider cryptocurrency market, including gaming tokens. Moreover, investment patterns are shifting geographically, with the United States seeing capital inflows of $263 million, while Canada and Europe experienced combined outflows of $297 million.
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