2022 has not looked good for crypto gaming tokens
For those active within the Crypto space and even those who are just general observers, 2022 was definitely an interesting year to say the least. We have seen the markets reach significant lows, which has left many in shock and awe.
When we compare prices we have seen in the last 2 years ‘Bull Run’ due to worldwide shutdowns, it is depressing to say the least. Crypto gaming itself is still somewhat on the rise as we’ve seen Microsoft and Sony dip their toes into uncharted territory despite the negative status quo on crypto-related topics.
Game related Tokens have taken a big hit in prices in 2022. Let’s delve deeper into which ones have been left kicking and screaming in 2022 as we enter a new rotation around the sun.
Which tokens perform the worst?
The worst performing gaming tokens among the worst performing cryptocurrencies may surprise many observers. There are 3 gaming related coins that have lost significantly and they are:
- Decentralized Land (MANA)
- Sandbox (SAND)
- Axie Infinity (AXS)
Decentraland got a big hit in 2022, decreases in value by as much as 91%. This time last year the token, which is tied to the wildly popular VR Metaverse experience. This time last year it was priced at $3.40 and slid in price from there ending in 2022 at around $0.30.
The Sandbox followed close behind MANA as it saw a further drop of 94% during 2022. Around this time last year, The Sandbox’s token was at $5.70. It is now at $0.40. The Sandbox is another very popular VR/AR game in the metaverse that has served as a bridge between Web2 and Web3 for established brands and organizations.
Finally, the Axie Infinity review (AXS) has also taken a 94% hit for its price. Once priced at $158 around July 2021 it is now valued at just $6.50 per token.Despite the drop in value, Axie as a whole has remained a very popular game. Players have traveled all over the world to compete in the very first Axie Infinity Esports Championship in Spain!
What has caused the price drop?
Since the first months of 2022, the financial markets have not been in a good place. While the Bull Run from covid was bound to end, no one would have expected it to do so in the way we experienced in 2022.
To begin with, it was the conflict in Europe that set off a panic which was then combined with the talk of inflation. Matching these 2 led to a mass selloff as both stocks and cryptocurrencies are considered riskier investments when experiencing times of economic hardship.
The crypto market was also blessed with a few scams, cases of fraud and cyber attacks. These eventually lead to billions in market value being liquidated for the gaming coins mentioned above.
Axie Infinity was hacked back in March 2022, resulting in 620 million dollars are stolen via fake job advertisements by North Korean hackers. Workers for Axie allowed their computer to become infected when they opened malicious PDF files. This hack sent waves across the entire Crypto gaming community, not just the Axie community. This was a real eye-opener that much more needed to be done when discussing safety and the measures that were put in place.
Terra (LUNA) also faced a major attack which came as a surprise due to the fact that cryptocurrency was pegged to the US dollar, making it a stable coin.
FTX was a hybrid of sorts as one of the world’s largest crypto asset exchanges filed for bankruptcy due to its founders laundering money and using user capital to fund their own side ventures.
Around $10 billion was wiped from the crypto market which Solana was one of the worst hit Crypto tokens. Binance, who was a key holder or a whale holder when discussing FTX’s token, FTT. When they sold their assets, everything came crashing down for Sam Bankman Fried and his own. Overall, it was clear that the market was feeling the effects FTX had caused.
Not all doom and gloom
What we’ve just covered in the above is pretty much a tearjerker, either way not all doom and gloom for crypto games. Although adoption is not necessarily on a mass scale, it has grown somewhat since the previous year.
Major Web2 gaming companies have shown interest or are promising interest in Web3, which should hopefully attract their die hard fans over to the blockchain list.
Furthermore, we have seen an improvement in the graphics and gameplay that Web3 game projects have to offer. Many of them have started building their infrastructure with Unreal Engine 5, the most cutting-edge game development tool on the market.
Hopefully 2023 brings more advancements from this growing industry and we see more playability and longevity from new and upcoming projects.