Over the last couple of days, the crypto market has seen a significant correction and continues experiencing notable volatility. According to a Decrypt report, gaming tokens are among the hardest hit, with significant declines observed as Bitcoin approaches its next halving event. In the past week alone, several major gaming tokens, including Gala Games, Pixels, Portal, and Xai, have recorded losses exceeding 30%, with some reaching new all-time lows.
As Bitcoin’s price dropped over 12% this week to about $61,200, down from highs above $71,000, other major cryptocurrencies like Ethereum also saw steep declines. Ethereum dipped almost 15%, falling below the crucial $3,000 mark. Meanwhile, broader market declines saw tokens like Solana and Avalanche drop by 24% and 30% respectively.
Specifically the gaming sector was particularly impacted. The GALA token, part of the Gala Games ecosystem, plummeted by 32%, landing at approximately $0.04. Immutable (IMX), holding a market cap of $2.7 billion and representing a significant player in the gaming token landscape, decreased by 27% to $1.89. This drop is part of a larger trend that saw the token’s value halve over the past month.
This trend is echoed across various gaming tokens launched this year, which have been disproportionately affected. Pixels (PIXEL), for example, fell by 39% over the week to about $0.40, while Portal (PORTAL) and Xai (XAI) both declined by 34% to prices of $0.99 and $0.68, respectively. Both Pixels and Portal reached their lowest recorded prices this past Saturday.
Even established tokens have not been spared. Axie Infinity (AXS), ApeCoin (APE), The Sandbox (SAND), and Illuvium (ILV) have all seen their values decrease by 27% to 29% over the week.
These fluctuations in the gaming token market highlight the broader instability in the crypto sector, especially as significant events like the Bitcoin halving approach. Stakeholders and investors are closely monitoring these movements to gauge the potential long-term impacts on the market dynamics and valuation of gaming tokens within the digital asset ecosystem.
