Crypto and blockchain-based assets are leaving behind an incredibly turbulent year. However, despite the crypto winter, some projects continue to receive investment. Metaverse coin projects, on the other hand, are among those attracting large investments. Here are the details…
VCs grow their investment in metaverse projects
As we reported on Kriptokoin.com, the Bitcoin market experienced a 74% drop in its price from its all-time high. In addition, daily OpenSea NFT volume is also down 97% from its previous records. However, this has not deterred venture capitalists (VCs) from investing billions in the blockchain-based gaming market. In 2022, VCs and angel investors invested over $3.4 billion in the blockchain playground (GameFi). 534 million of these investments were made in just two months, in October and November. This is surprising given not only the overall decline in crypto and the stock market, but also the steep decline in VC investments in general.
Venture capitalists’ investments often become a strong predictor of future trends. This provides insight into good industries to invest in as they gain momentum. For example, investments in Gameflip and StartEngine are rising. The growth of investments is turning investors’ attention to these companies. This is due to the increasing trend of NFTs being adopted as mainstream in gaming. Most notably, NFT games and collectibles store GameStop (GME) is slowly gaining momentum with over $2 million in volume in the last month alone. The gaming market also showcases 20 blockchain-based games.
These metaverse coin projects have lost their popularity
While VCs are pouring in big bucks, they’re certainly not immune to volatility. Examples include Axie Infinity and The Sandbox, which once dominated the market and news cycle. These top mainstream games are no longer even featured in the top 10 most active games on the market. Currently, the 3 largest metaverse coin projects by market value are:
- apecoin
- Internet Computer
- Theta Network
GameFi investments remain strong overall. However, GameFi is outperforming investments in the blockchain industry. For example, in 2021 GameFi and the metaverse accounted for around 11.54% of all funds going to blockchain-based companies. In 2022, this figure is 17.64%. So they are the biggest investment-based trends going into 2023. Some other growing trends are gaming markets and infrastructures like Gameflip and GameStop. However, it increases from about 3.18% to 9.23%.
