NFT, Crypto Gaming, Touted As The Light At The End Of The Tunnel Despite Market Havoc
NFT, Crypto Gaming are being touted as hope in the cryptocurrency sector which is in turmoil. Many pessimists forecast it as the death knell of the digital coin. However, some say it is a stage of metamorphosis and the new and evolved form of cryptocurrency will once again rule the roost.
The NFT sector could soon decouple from the monetary market in a similar way art has disengaged from S&P 500. The tanking of blue-chip collections has led to a fall in market volume of Fungible Tokens from $18 billion to $10 Billion. This represents a huge fall of 45%. However, the silver lining in an otherwise bleak cloud is the flow of VCs into this category.
NFT And Crypto Gaming Are Holding Their Ground
Cryptosector is in a state of flux and the recent routing of Terra has spread a feeling of gloom and bearish sentiments in the Crypto Sector. However, the melee has left dApps unscathed and the ecosystem is getting rid of its unwanted flab and becoming sleeker and better.
The NFTs may be in a bad shape today but it is still better than what it was last year. The fact that the entire NFTs segment has shed $8 Billion is a testament that the sector is in a process of correction and shedding excess flab. An example is the BAYC floor value which has tanked 38% in the month of May, from 150 ETH to 93.
However, this fall in values has become a boon for other NFTs like Otherdeeds, land parcels for the Bored Ape metaverse Otherdside, and Goblintown all of which are experiencing high buoyancy in their trade volume, surpassing BAYC as per data from DappRadar.
NFTs gaming is also in a buoyant state with money finally flowing into this sector. A $725 Million fund has been set aside by Dapper Labs while a16z released its GAME ONE FUND, which will make an investment of $600 Million in the metaverse gaming sector.
DeFi was the boxing sac in the current incidence of turmoil and as per DappRadar, the DeFi ecosystem plunged by 45%, still up by 11% in contrast to the previous year.