Gaming Coins – Where are they as we speak?

Crypto gaming is really that cool uncle who you see once or twice a year at the family functions. The brains behind this booming industry have been able to bring forward some of the most revolutionary ways for video games to be enjoyed.

At this point in history, players are able to extract real world value from their favourite games and have full ownership over their experiences and in-game assets. Integrating these features have opened up the doors for what is now looking to become a billion dollar industry that has seen some of the biggest names in the entertainment industry having their say with play to earn and blockchain tech.

2022 has not been shy of its downfalls as we have seen many asset classes, including crypto, dropping from their all time high prices leaving many investors thinking “What now?”.

The current recession and previous worldwide lockdowns have really taken their toll on the financial markets, with many effects still being felt today.

Crypto gaming tokens are an interesting phenomena. Whilst many titles have highly active communities that see millions of daily and weekly users, the tokens associated with said crypto gaming titles have become highly stagnated and have been for some time now.

In this report we look further into crypto gaming tokens, really unpicking the trials and tribulations investors have encountered and what they mean going forward…

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What are crypto gaming coins?

Crypto gaming tokens are very similar to that of your traditional cryptocurrency such as Bitcoin and Ethereum. They are digital currencies, created through the integration of blockchain technologies.

Crypto gaming coins can be used in-game by players to enhance their gaming experience, buying upgrades and character items. “Play-to-earn” has become a popular phrase within the gaming community as players are now rewarded with more than just level ups and gaming achievements/trophies.

Play-to-earn is literally what it says on the tin. By playing games you are able to earn the specific coin associated with that game. What makes them so interesting is the fact you are able to use them both in the game and/or exchange them out of the game for real world FIAT currency.

If you’re still not convinced then there is more you can do with your earned coins. Staking has become an integral part of the world of crypto. Providing capital to liquidity pools allows both yourself and other gamers taking part to enjoy highly lucrative rewards as funds are locked up for an extended amount of time.

Some of the biggest titles, played by millions across the globe, are offering gamers anywhere up to 40% APY on their staked capital. When you compare this to the average 0.6% offered by high street banks there’s no surprise people are turning to crypto gaming as their money is being put to better use.

What are the most popular gaming coins?

When we look into the different gaming coins and their popularity, this is not decided by the overall price. When labelling something as popular, it is simply the coins that have had the most amount of money put into them by investors, aka their market capitalization.

The top 5 coins are as follows:

  • ApeCoin ($APE) – Cap = $1,656,742,923 – Based off of the popular Bored Ape ecosystem (NFTs).
  • Decentraland ($MANA) – Cap = $1,299,620,744 – This coin is linked to the popular virtual reality open world game, Decentraland.
  • The Sandbox ($SAND) – Cap = $1,250,278,043 – This coin is linked to the open world virtual reality game The Sandbox
  • Axie Infinity ($AXS) – Cap = $1,023,703,307 – This coin is linked to the PvP arena based game Axie Infinity.
  • Enjin Coin ($ENJI) – Cap = $444,234,087 – This coin is linked to the Enjin blockchain and can be used via the designated titles released through Enjin.

The readings

Now that we have an understanding of the popular gaming related tokens, it is time to look into the growth and declines that they have experienced.

$APE, whilst priced at roughly $5 at the time of the writing, saw considerable growth at the start of its lifespan, reaching trading highs of $27 in April of 2022. That is a 137% difference in price from the ATH price, crazy!

$MANA, whilst linked to one of the biggest crypto games on the market, has remained fairly moderate in price, reaching highs of $5.9 in November 2021. At the time of writing this coin is $0.69, seeing a 158% decline in price.

$SAND has had a very similar life to $MANA, being easily accessible in terms of price. Reaching highs of $8.5 back in November 2021 it has since sunk to $0.8 at the time of writing. Clocking in a 165% decrease.

$AXS is on the opposite end of the spectrum. Reaching highs of $160 back in November 2021 it has seen a drastic change in price since then priced now at $12, this is a 172% decline in price!

Finally there is $ENJ which saw highs of $4.7 back in November of 2021 and has since plummeted to $0.44 at the time of writing. Overall this coin has faced a 165% decrease in price.

The Sandbox

Where does this leave crypto gaming tokens?

One thing that is interesting is that all the trading highs of the majority of these coins was in the month of November, 2021. Since then prices have remained fairly stagnant with not much growth being shown since then.

Many of these games have allowed staking options for gamers which in turn produce more of the given token. Increasing the supply of anything makes it less scarce and more readily available, thus driving the price down…

Axie Infinity, when comparing the top 5 crypto gaming tokens, has been at the forefront of losing out on the most value.

Whilst overall trading for the coin may have plummeted and with the recent economic climate starting to take the toll on ALL financial markets popularity for the game has not plummeted. If anything the user base and brand awareness for this game has increased over the past few months.

Axie has had its own esports event hosted where hundreds of thousands of dollars were up for grabs in prize money.

With crypto gaming taking up a large portion of the cryptocurrency industry there is no denying that the price in coins has not affected long term holders and even the institutional investors such as Square Enix and Microsoft who are jumping into play to earn gaming.

Furthermore, games such as The Sandbox have introduced many brands and companies to an early experience of the metaverse and has become a favourite amongst celebs and gamers alike.

As we see the recession grow the “riskier” asset classes such as crypto will remain under the rug in terms of investing FIAT currency as investors will keep their cash or go for less riskier investments.

Whilst the prices of these top coins have decreased DRASTICALLY, it is to be noted that the gaming scene is in full swing. If anything, treat the low prices as a potential sale as the trading power of the lower prices could cause another potential spike in price.

Make sure to always do your research before committing your funds to any form of cryptocurrency as markets are and have proven to be highly volatile!

Happy gaming/investing!