Gaming Token Market Capitalization Soars Above $30 Billion, Here's Why!

Bittime - The market capitalization of gaming tokens skyrocketed to reach $30 billion (around IDR 480 trillion) on June 6, according to CoinMarketCap. This rapid increase is driven by several interesting factors. Let's take a look at the trends and reasons behind the surge in gaming tokens!

Notcoin Skyrockets, Telegram Integration Becomes Main Factor

One of the tokens leading this surge is Notcoin (NOT). The price soared fantastically by 135% in a short time, and is now trading at around $0.02187 (around Rp. 350).

Notcoin's market capitalization also shot up to $2.24 billion (around IDR 35.8 trillion), placing it comfortably among the top 50 cryptocurrencies.

The secret behind Notcoin's success lies in its integration with Telegram. This collaboration enables Telegram's wide user base. More than 1.5 billion registered users and 800 million active users can access and use Notcoin easily.

Not only that, Notcoin also introduced a unique Play-to-Earn (P2E) model on the Telegram platform. Users can play various games and complete tasks directly in the Telegram app, and in return, they will get rewards in the form of Notcoin tokens.

Floki Also Soars, Supported by Large Investment

Following Notcoin is Floki (FLOKI) whose price rose more than 24% in the last week and jumped more than 82% in the last month, now trading at around $0.00031 (around Rp. 5).

Floki's recent rise in value was driven by steps taken by crypto trading firm DWF Labs.

They announced plans to buy $12 million (around IDR 192 billion) of FLOKI tokens from the open market and Floki treasury. This isn't DWF Labs' first move.

Previously in February 2024, they had purchased $10 million (around IDR 160 billion) of FLOKI tokens, which resulted in a price increase of up to 50% the following week.

In addition, the team behind Floki is also preparing to launch the mainnet version of its main product, the metaverse game Valhalla, at the end of this year. DWF Labs' large investment is expected to support this venture and provide the necessary liquidity for Floki's growth.

Various Other Factors Drive the Positive Trend of Gaming Tokens

Excitement and massive investment also color the crypto gaming market. The Xai Foundation, for example, is taking strategic steps to attract Web2 developers (traditional game developers) to the crypto world. They teamed up with venture capital firm Outlier Ventures to launch the Xai Tokenomics Bootcamp.

This bootcamp is designed to help developers shift from traditional gaming models to blockchain-based ones. The focus is on ownership of game assets, use of tokens, player rewards, and increased security.

On the other hand, the first quarter of 2024 will be a profitable period for the crypto market as a whole. The crypto industry's victory in its long battle against the SEC as well as the approval of a spot Bitcoin ETF in the US have boosted investor sentiment.

This positive vibe is also felt by the Web3 gaming sector. According to DappRadar, investment in Q1 2024 reached $288 million (around IDR 4.6 trillion). This figure jumped drastically to $988 million (around Rp. 15.8 trillion) in April, becoming the highest monthly investment record since January 2021.

Meanwhile, the average unique active wallet for gaming dApps (decentralized applications) barely reached 3 million daily users in April. This record figure is equivalent to almost 28% of the entire dApp industry.

Big players such as a16z, Bitcraft Ventures, and Ubisoft Studios are also pouring funds into this sector. This shows their strong belief in the future of Web3 gaming.

This trend of increasing investment reminds us of early 2021, where new technologies such as NFTs and DeFi protocols sparked huge interest.

Surge in Gaming Tokens Driven Ethereum's Latest Technology and Layer-3 Solutions

Unlike 2021, this time the surge in interest in gaming tokens was triggered by a new Ethereum (ETH) technology called Account Abstraction and Layer-3 blockchain solutions.

Account Abstraction replaces traditional wallets with programmable smart contracts. So, the user experience becomes smoother and safer.

This system eliminates the need for a seed phrase and allows familiar login methods such as email or Google account. Apart from that, Account Abstraction also introduces sponsored transactions, so that gas fees can be reduced.

Layer-3 solutions, or application-specific blockchains, make transactions faster and cheaper. Combined with Account Abstraction, this technology promises a seamless, free gaming experience that is as good, if not better, than traditional Web2 games.

Conclusion

Wider trends suggest that the current bull market is also likely to bring benefits to the crypto gaming market. Gaming token price spikes may continue to occur in the next few days.

However, it is important to remember that investing in the crypto market carries high risks. Do in-depth research before investing and never invest more money than you can afford to lose.

Make sure to stay up to date with the latest developments in the crypto industry and pay attention to factors that can influence the value of gaming tokens.

How To Buy Crypto With Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Learn How to Buy Crypto on Bittime.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.