What caused the rapid rise in the price of decentralized gaming tokens and what prevents the industry from continuing to grow in the near future
In recent days, some tokens of gaming decentralized projects have shown significant growth. For example, the cost of the Decentraland (MANA) token increased by 300% over the week. Over the same period, the token of the game project The SandBox (SAND) has risen in price by 240%. Both of these projects are building metauniverses that allow players to make money from selling virtual assets.
Growth is justified
The announcement of the creation of the Facebook metaverse (META) contributed to the rise in the price of MANA and SAND tokens, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. According to him, in his address to users, Mark Zuckerberg mentioned cryptocurrencies and decentralization. This gives reason to believe that these technologies, as well as existing projects based on these technologies, will be integrated into the social network, which means they will have direct access to its multi-billion dollar audience, the expert noted.
On October 28, Facebook Inc., which owns the social network of the same name, as well as services Instagram, WhatsApp, and others, announced its name change to Meta. This is necessary for users to perceive the corporation as a developer of the metaverse. According to the forecast of the founder of the company, Mark Zuckerberg, product development will take 5-10 years. The project is expected to support NFT non-fungible token technology.
Due to the fact that the growth of the GameFi industry was caused by just one piece of news, one should not expect long-term growth, Soshnikov is sure. According to his forecast, this was a single impulse, however, in the future, the direction of decentralized gaming projects has great potential.
“I would not recommend going into gaming assets now, because I believe that further growth is unlikely,” the expert warned.
It is dangerous to buy now
After a sharp increase, it is dangerous to enter an asset, since there is a high probability of a correction, explained Mikhail Karkhalev, financial analyst at Currency.com cryptoexchange. He advised to wait for the correction, which will allow the purchase of game tokens at a reduced price. In general, the gaming industry is a very promising direction, but when assessing it, it is also necessary to take into account the general market sentiment, the analyst says.
Among all the game projects, Karkhalev singled out Axie Infinity, which, according to him, is one of the most popular. The project is supported by such giants as Samsung, Ubisoft, HTC, and the AXS token has risen in price by 2680% over the past four months, to $ 139, the analyst added.