Factors Driving Gaming Tokens Market Cap Beyond $30 Billion
The market cap for gaming crypto tokens has experienced a significant surge, surpassing $30 as of June 6, according to CoinMarketCap. This surge is driven by various factors and has sparked excitement among traders in the gaming industry.
Leading this surge is Not (NOT), which has seen a remarkable rise in value, with a staggering 135 increase. Currently trading at $0.02187, Notcoin’s market cap has soared to $2.24 billion, it among the top 50 cryptocurrencies by market cap. An essential factor behind Notcoin rise is its integration with Telegram, allowing easy access and usage for Telegram’s extensive user base.
Another token making waves is Floki (FLOKI), which has gained over 30% in the last week and more than 64% in the past month. Trading at $0.000315, Floki’s recent boost can be attributed to DWF Labs’ plans to purchase $12 million worth of FLOKI tokens from the open market and Floki treasury.
The crypto gaming market as a whole is experiencing excitement due to recent developments and substantial investments. The Xai Foundation’s collaboration with venture capital firm Outlier Ventures to launch the Xai Tokenomics Bootcamp highlights efforts being made to integrate traditional Web2 developers into blockchain-based gaming models.
Additionally, positive sentiment within the crypto industry following battles against regulatory bodies like SEC and approvals of spot Bitcoin ETFs have spilled over into Web3 gaming sector investment. In Q1 2024 alone, reached as high as $288 million, with April seeing an investment spike of $988 million—the highest monthly investment since January 2021.
Big players like a16z, Bitcraft Ventures, and Ubisoft Studios are investing heavily in this space—an indication of their confidence in the future of Web3 gaming.
One key driver behind this buzz is Ethereum’s new technologies: Account Abstraction and Layer-3 solutions Account Abstraction replaces traditional wallets with programmable smart contracts for smoother user experiences that eliminate phrases while introducing familiar login methods like email or Google accounts.
Layer-3 solutions provide faster and cheaper transactions on application-specific blockchains. with Account Abstraction technology on Ethereum network promises seamless free-to-play experiences that rival or exceed those offered by Web2 games.
Overall trends suggest that gains from today’s bull market may spill over the crypto gaming sector—further pumps are expected in days ahead.
Please note that this article does not constitute investment advice; it solely educational purposes.