- Gaming tokens like MANA and SAND are down, but metaverse and NFTs doesn’t seem to have lost sheen
- The success or failure of any gaming token could rely on the appeal of the linked game to users
- Games with a good interface and powerful play-to-earn model could pique the interest of gamers
Major cryptocurrencies are down yet again, and the total market cap of cryptos is under pressure, data by CoinMarketCap suggests. A major sub-category within the crypto universe is gaming tokens, which may be linked to a blockchain game with NFT features like Axie Infinity or a platform like Rarible that facilitates trade in NFTs.
Explained : Cryptocurrency categories – DeFi, NFT, Metaverse
At present, top games under this category, including Decentraland (MANA), and The Sandbox (SAND) are trading in the red zone. These tokens rallied sharply last year, especially when news about Facebook’s name change to Meta (metaverses include gaming verse projects) broke. In the near term, these tokens may not rise as sharply, and the focus may be on emerging blockchain-powered games.
Let’s look at the top three contenders in this category.
1. Gala Games (GALA)
Gala Games is an emerging participant in the gaming verse, though the market cap of the project is not as high as that of the major tokens MANA and SAND. Gala describes itself as an ecosystem of multiple games, NFTs, and a DAO governance model.
Gala claims it has over 1 million monthly active users, and some 26,000 NFTs linked to the games have been traded so far. Some of the popular games in the ecosystem include Town Star, and The Walking Dead: Empires. Gala also states that the platform has over 16,000 nodes, which are run by the players.
The GALA crypto is native to the Gala Games’ ecosystem. Nodes that operate the network get GALA coins in return, and the token is also traded on exchanges like Binance, Crypto.com, and Coinbase.
Though GALA has lost value so far in 2022, from US$0.45 to nearly US$0.2 as of writing, it makes for an interesting watch in the upcoming months. First, the project has partnered to launch NFTs linked to the Sin City game (a multi-player metaverse), and second, its NFT land parcels may draw brands. So far, brands have thronged to Decentraland and The Sandbox metaverses.
The GALA crypto also comes with a low price per token appeal, which may entice a section of crypto and metaverse enthusiasts.
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2. My Neighbor Alice (ALICE)
My Neighbor Alice had a market cap of nearly US$870 million in November 2021, but it is down now to nearly US$192 million. What makes this blockchain game a close watch is its focus on farming and building in a fictional world.
The game allows users to purchase some land and build their own world on it, which may bring revenue in the future. Though the game has similar underpinnings as Decentraland, the user interface is different, which may set it apart.
ALICE is native to the My Neighbor Alice ecosystem. The token can be used to buy in-game assets and for staking purposes.
Unlike Gala Games, which has multiple games to pick from, My Neighbor Alice is betting on a single game so far. But as NFTs like those of Beeple and CryptoPunk sell for very high prices, My Neighbor Alice makes for an interesting watch since it featured in top the 200 cryptocurrencies by market cap as of writing.
3. Rarible (RARI)
Though Rarible is not a typical blockchain game, the project has utility in the trading of NFTs. NFTs are often used by gaming verses to appeal to users.
NFTs of games use the services of platforms like Rarible. For example, Axie NFTs of the Axie Infinity game are tradable on OpenSea, which is a competitor to Rarible’s NFT exchange.
Rarible does not have a high market cap as of now, but it is an emerging cryptocurrency. It has listed some popular NFTs like those of Bored Ape Yacht Club (BAYC).
The RARI token is native to Rarible. It serves multiple purposes like staking and governance. The RARI crypto is trading below its all-time high price of nearly US$45. The current price of RARI is under US$10, but if Rarible can attract more users to mint and trade NFTs, the token may reclaim some lost ground.
Rarible brings with it the promise to make the auctioning of digital assets decentralized, which challenges auction houses like Sotheby’s and Christie’s. How this turns out in the future is a wait-and watch game.
Data provided by CoinMarketCap.com
All cryptocurrencies, regardless of whether they represent a blockchain network like Ethereum or some gaming verse like Decentraland, are volatile in nature. Last year, MANA and SAND gained, and AXS went on to become one of the top-performing assets of 2021. But so far in 2022, all three have declined in value.
The above three tokens -- GALA, ALICE, and RARI -- make for a close watch in the near term due to a slew of factors like metaverses and NFTs continuing to be a top trend in the market. The price may gain if the linked projects can invite more users, which could directly create demand for these native tokens.
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