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Play-to-earn gaming tokens take the spotlight as hype around BRC-20 narrative fades

  • Bitcoin Ordinals hype fades, spotlight shifts to gaming tokens Sandbox, Decentraland, Axie Infinity and ImmutableX. 
  • Play-to-earn gaming tokens are positioned to fuel a recovery in the SUI ecosystem. 
  • Expert analysts support the narrative that gaming and metaverse play-to-earn tokens will likely drive the next crypto bull run. 

The Bitcoin Ordinals hype has faded with a decline in transaction volume on the BTC network. The narrative of gaming tokens and how they drive the adoption of virtual assets among market participants gained relevance with the recent price rallies in Play-to-Earn (P2E) tokens. 

Also read: Vitalik Buterin warns against risks of overloading the Ethereum network

Sandbox, Decentraland, Axie Infinity erase losses from past week

Play-to-earn (P2E) gaming tokens Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS) and Iluvium (ILV) cut losses from the past week. Recovery is likely for the P2E ecosystem tokens as the narrative of gaming tokens fueling the next crypto bull run gains popularity. 

Further, BRC-20 token standards, Bitcoin Ordinals, are slowly losing their popularity among traders, which becomes evident from BTC’s declining transaction volume.

Bitcoin transaction volume 7-day moving average

Bitcoin transaction volume 7-day moving average

Pentosh1, a crypto analyst and trader, recently shared his bullish thesis about gaming ecosystem tokens in a tweet. 

The expert’s argument is that most market participants aren’t as interested in the problems being solved by crypto protocols, and gaming is the avenue that increases adoption and utility in the ecosystem. 

Interestingly, while most large market capitalization cryptocurrencies like Bitcoin, Ethereum and Binance Coin witnessed a pullback, SAND, MANA, AXS and ILV wiped out their losses. 

Gaming tokens are likely to fuel a recovery in SUI 

SUI, the native token of the Sui ecosystem, is likely to begin its recovery soon with games like Cards of Ethernity, Final Stardust and Cosmocadia adding new users to the protocol. The SUI blockchain is attracting gaming enthusiasts.

The SUI protocol mainnet went live three weeks ago and the asset has nosedived 51% from its all-time high of $2.16. Higher adoption of the SUI ecosystem by gamers is likely to drive demand higher and likely fuel a SUI price recovery. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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