If there's anything that competitive gaming could teach us, it’s that early setbacks don't determine future outcomes.
The Sandbox token (SAND), which is the leading gainer, is a major contributor to the recent rally.
SAND token’s price has risen by more than 32.3% in the past 24 hours. It now stands at $0.8. It's also showing signs of strong momentum, with a 7-day increase of 26.2%, CoinGecko data shows.
SAND’s performance is even more impressive when you compare it over a longer period of time: SAND was up by 131% within two weeks and by 243% in the past month.
Sandbox is a metaverse platform based on Ethereum. The Sandbox launched its DAO in May. Token holders can now decide the fate of the game, its economy and the on-chain.
“Gaming tokens are the backbone of the Web3 gaming ecosystem,” Gabby Dizon is the co-founder and CEO of Yield Guild Games. Decrypt. “People hold gaming tokens because they believe in the potential of Web3 to redefine gaming,” Dizon added.
Historical data shows that the SAND market has seen a significant increase in trade of over $880 Million over the last 24 hours. This is an 88% jump from previous days.
Bouncing back
In June earlier, Decrypt The crypto market has cooled off, and the rally of Bitcoin and Ethereum is now a distant memory.
After the Bitcoin half-discount, the industry suffered big losses.
Even with these losses, the popularity of gaming tokens has not diminished.
Dune’s dashboard, based upon research conducted by independent data analysts PanteraFi and SAND, shows a share of the market for SAND’s GameFi Index. This index tracks all games on decentralized platforms.
“The use case for gaming tokens is about ownership. Players can own their digital assets, trade them freely, and have a say in the direction of the games they play. It’s about aligning incentives between developers and players, so everyone benefits,” Dizon.
The gaming sector is on the rise
CoinGecko’s data shows the volume of SAND trading has decreased since November 25. That was the day when overnight, the amount traded for this asset went from $523 to $5.2 billion. The price rose from $0.4 per share to $0.7 in the same time frame.
Decentraland’s native token (MANA), which is a gaming blockchain ecosystem, was also up on the same day. At the time this article was written, it had risen 17.5%.
Gala Games (GALA), a blockchain-based gaming platform, saw the value of its token also rise by 21.8% in the past 24 hours. GALA’s trading volume also grew by 65.8% in the last 24 hours, reaching $977 million. The market capitalization of GALA was just above $2.1 billion.
Axie Infinity's AXS token has also shown remarkable strength, recording an 21.1% gain and reaching $9.29 — its highest price point in eight months. This comes after the game development studio behind it, Sky Mavis, announced a layoff for 21% of its staff and confirmed that it's working on a new game.
The AXS token's market cap now stands at $1.4 billion, supported by a healthy 24-hour trading volume of $472 million. A modest increase in the market capitalization of all gaming governance tokens, which is now $5.4 billion, has been seen.
“The games that come out on top this cycle will be the ones that are able to target and onboard value-adding communities at scale,” Dizon noted
Stacy Elliott is the editor.