Metaverse crypto projects are experiencing a healthy increase this year. This is easily outstripping Decentralized Finance (DeFi).
In the past 30 days and year-to-date, tokens related to Enjincoin’s metaverse and gaming project have all surged.
According to Index Coop’s Metaverse Index (MVI), crypto’s overall metaverse sector is up 105% as of 8PM ET and 62% over thirty days.
Blockworks’ Simon Kertonegoro, CEO at MyMetaverse, stated that “investors are becoming more interested in Web3 and platforms they believe can take advantage of a fair portion of the games industry.”
He said that both the industry and investors will benefit from the success of a single Web3 gaming platform or game. This is also true for those who have invested in the right tokens.
MANA of Decentraland has a lead – it is up 150%, and its 30-day performance, which is also impressive, is 90%.
To give an idea of scale, bitcoin (BTC) has increased 39% year-to-date and is around 30% in the last 30 days, while ether is at 38% (and 25% respectively).
Enjincoin, also known as ENJ, has more than doubled since 2023. This token is trying to recoup a 90% fall from its peak in November 2021.
Along with Web3 lifestyle project STEPN and The Sandbox’s SAND, this year has seen a double-digit increase in SAND.
Axie Infinity and Yuga Labs’ AXS have both returned lower, up 48% & 73% respectively over the same period.
Sam Martin, Blockworks Research Analyst, stated that there was no one catalyst for the recent performances. However, metaverse tokens bounced. The current move indicates a mean reversion to the upside.
Martin stated, “Metaverse tokens reached peak excitement at the end of 2021 when Facebook rebranded as Meta.” “In hindsight we can see that the market was pricing in far too many growth opportunities relative to the crypto niche’s underlying fundamentals.”
Compare this to DeFi assets like uniswap, aave(AAVE), pancakeswap/CAKE, curve (CRV), Thorchain (RUNE), synthetix/SNX which have averaged around 42% returns in the last 30-days and 63% by 2023.
The Nasdaq index DEFX, which tracks prominent DEFI cryptocurrency performances, is up 58% over the past year.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
