Why Gaming Tokens Are Winning in Crypto

Taking the Center Stage

While Bitcoin took a breather after soaring to its all-time high in early November, gaming tokens have snatched the spotlight, racking up jaw-dropping gains across the board. Take The Sandbox’s SAND, for example, which recently snatched headlines with a whopping 340% increase in just a month. GALA wasn’t far behind, rallying around 300% over the same period. This surge has sparked conversations about a potential new altcoin season.

What is Altcoin Season?

In the world of crypto, an altcoin season occurs when a majority of the top altcoins outperform Bitcoin over a specific timeframe. According to market analytics, altcoins recently received a healthy 40% rating in this regard, signaling that they’re having a better time than Bitcoin has lately.

Gaming Tokens vs. Bitcoin

When we take a look at the top 10 cryptocurrencies by market capitalization, the results have been a mixed bag against Bitcoin over this past month. However, it’s clear that the real stars are in the gaming sector. While SAND leads the charge, others like Axie Infinity Shards (AXS), Enjin Coin (ENJ), ILV, and Ultra’s UOS have shown better gains compared to Bitcoin. Investing in ILV back in September? That’s a neat threefold gain, and SAND? A whopping sevenfold!

Why the Surge?

The rise of these gaming tokens stems from the fusion of cryptocurrencies and gaming, creating an ecosystem where crypto fans and gamers collide beautifully. With games like Axie Infinity making headlines for their play-to-earn (P2E) models, gamers are finding new ways to earn while playing. Initially, players bred cute monsters called “Axies” without using in-game currency. It wasn’t until the introduction of the Smooth Love Potion (SLP) token in December 2019 that things started to boil over.

The NFT Impact

Jumping on the nonfungible token (NFT) bandwagon, gaming has made strides alongside the broader segment. NFTs saw a massive boom following 2020’s DeFi summer, making 2021 their breakout year. While the spotlight initially shined on art and collectible NFTs, gaming titles like Axie Infinity and Dark Country managed to hold their ground even amidst market downturns.

Final Thoughts

The intertwining of gaming and cryptocurrency looks to be paving the way for a future where these tokens continue to thrive—actions over transactions, and fun over fundamentals!