Thomas Daniels
Recently, the cryptocurrency sector has undergone a noticeable downturn, particularly impacting gaming tokens amidst Bitcoin nearing the $40,000 threshold.
On Monday, the digital currency market saw a downturn, significantly affecting gaming tokens as Bitcoin edged closer to $40,000, as per CoinGecko’s analysis.
Among the affected, Immutable’s IMX token witnessed an 8% drop to $1.80, while Beam (BEAM) and Gala Games (GALA) both experienced approximately 7% declines. The governance token of Axie Infinity, AXS, decreased by over 6%, and its in-game SLP reward token fell by 7%. Contrasting this trend, Ronin (RON) rose by 34% over the past week, reaching $2.32, catapulting it into the top 100 cryptocurrencies. It achieved a peak of $2.52 on Sunday, its highest value since February 2022.
These fluctuations within the gaming token sector mirror wider movements in the cryptocurrency market. A recent analysis by CoinShares revealed a slight withdrawal from digital asset investment products, totaling $21 million last week. In the same period, Bitcoin’s trading volumes spiked to $11.8 billion, almost sevenfold the typical weekly volume seen in 2023.
Bitcoin’s substantial trading volumes have a cascading effect on the broader cryptocurrency market, including gaming tokens. Moreover, there’s a geographical shift in investment patterns. The United States reported capital inflows of $263 million, while Canada and Europe saw combined capital outflows of $297 million.
