Metaverse Tokens are Making Whopping Gains Despite Bear Market

According to a new report dubbed “The Metaverse, an Inflection Point” by Kraken Intelligence, the metaverse coins significantly outperformed all other types of tokens over the course of one year.

Referring to the metaverse as “an online virtual world where individuals experience a variety of interactions, environments, and objects. Mainly through 3-dimensional (3D) digital avatars, users engage in real-time communication, coupled with an immersive experience”, the analytical piece states that the use of non-fungible tokens (NFTs) differentiates centralized metaverses from the crypto ones, as NFTs empower individuals with control over their digital assets.

“For example, NFTs play a significant role in the growth of blockchain-based gaming, which makes up a part of the metaverse,” the report reads, outlining top metaverse projects. They include The Sandbox, Decentraland, Somnium Space, CryptoVoxels, and SuperWorld.

While over the past 30 and 90 days, the metaverse tokens were among the worst performers, losing 42% of their value with a volatility rate of 173%, they have nonetheless substantially outperformed every other crypto category on the market, going up 395% within one year. Exchange tokens, which saw a 6% increase, were also among the gainers. Decentralized finance and meme coins, however, took the worst hit, plummeting 72% and 62% respectively. 

Kraken’s report in part echoes the findings made by DAppRadar in April, which showed that $2.5 billion was raised in support of blockchain games and metaverse projects in the first quarter of 2022. According to it, 52% of all blockchain activity came from game DApps.