Metaverse-related tokens have started the year hot, outperforming bitcoin, the world’s largest cryptocurrency by market value, by large margins.
January’s market surge has seen a number of smaller tokens outshine the largest cryptocurrencies by market capitalization. Bitcoin has risen 40% for the month, ether by 32% and BNB by 32%. Decentraland’s market cap sits at $1.3 billion while bitcoin’s is $446 billion.
Yield Guild Games’s YGG has gained 92% in price. YGG is a gaming guild that invests in the play-to-earn world and provides on-ramps for users. It has a $57 million market cap.
Sheraz Ahmed, managing partner at blockchain consultancy STORM Partners, said the metaverse-related token upswing is partly because “the business potential of such tokens is now much clearer than it was a year ago, which in contrast to certain altcoins is not the case.”
The Sandbox’s SAND token has rallied by 91% ahead of its token unlock in mid-February. Play-to-earn game Axie Infinity’s token AXS also gained around 75% on the month and has a token unlock in April.
“It’s clear that Investors have a growing interest in Web3 virtual worlds, Ahmed said. "A new report from McKinsey & Co. says spending in the metaverse could reach a total of $5 trillion by 2030, showing everyone wants a slice."
The metaverse-related token total market cap is currently around $8.5 billion, less than 1% of the total crypto market capitalization, which is now almost $1.1 trillion, Ahmed said, adding: “Therefore, there is plenty of room for growth.”
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