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Weekly trends (31/10 – 7/11)

  • 08/11/2021

Several layer-1 blockchains see price surge, the beginning of altcoin season

Since Bitcoin retreated from its ATH last week, several altcoins are taking off. This week, Ethereum, the second-largest cryptocurrency, peaked at $4,726.03, according to data from Messari. Polkadot and Avalanche are two other projects that achieved new ATH; DOT’s ATH was $54.86, and AVAX’s ATH was at $90.71.

Solana is the fastest-growing protocol this year, hitting a new peak at $257.70. The 7D ROI is 22.81%, and the 3-month ROI is 507.14%. Solana is now ranked fifth by market cap, taking over Cardano’s place. The total locked value on Solana reached $14.86 billion.

Performance of top 10 smart contract platforms by market cap – Source: Messari

 

Factors contributed to Avalanche’s ATH at $90.71

Avalanche was launched more than a year ago. The project quickly took off later this year after launching its first ecosystem fund – Avalanche Rush. Several factors that contributed to AVAX reaching ATH are: 

Avalanche launched a fresh $220 million investment – Blizzard. After the Avalanche Rush, the foundation launched another investment. Avalanche’s foundation hopes the new investment program will attract developers focused on DeFi, enterprise applications, NFTs, and culture. The program will assist promising projects with equity investments, token purchases, and other kinds of operational support.

Avalanche joined DeFi Alliance’s Ecosystem Partnership Program. The Ecosystem Partnership Program will provide mentorship and other specific resources for those startups building in the Avalanche ecosystem while also helping The DeFi Alliance’s startups learn how to integrate their projects onto Avalanche. DeFi Alliance provides mentorship and networking opportunities for its members with a focus on DeFi and Web3 gaming.

Avalanche got listed on Nexo – a leading digital platform for digital assets. Nexo offers 17% earnings interest when customers buy and deposit AVAX. Avalanche is one of the fastest-growing ecosystems, ranking in the top 5 in terms of total locked value. 

Total value locked by protocol – Source: Defillama

NFT and Metaverse

After Facebook shared its ambitious vision for Metaverse, many companies are racing in the metaverse development. The first indicator is funds flowing into the game and NFT developers companies. The second indicator is that traditional game developers want to jump into the play-to-earn space after seeing promising results from Axie Infinity.

The Sandbox, a gaming platform that allows users to build a virtual world using non-fungible tokens (NFTs), has raised $93 million from investors led by SoftBank’s Vision Fund 2. This investment will help fuel the growth of the Sandbox creators’ economy as it expands from gaming into fashion, architecture, and virtual concerts. Softbank also made a series of investments in NFT companies for example Candy Digital – sports NFT startup, and Sorare – NFT fantasy soccer game

FTX, Lightspeed Venture Partners and Solana Ventures invested $100 million in Web 3 gaming development. The funding will support gaming studios and technology that integrate the Solana blockchain into video games on desktop and mobile platforms.

Enjin has formed a $100-million fund to support the development of the metaverse ecosystem and collaborate on NFT projects on Efinity and Polkadot. Enjin provides softwares to create and manage NFT on Ethereum. Enjin wallet allows users to store, manage, and sell game NFT using cryptocurrencies across blockchain games and dapps. The ability to bring the user’s own identity to different games and platforms is our vision for a metaverse.

Mythical Games just raised a $150 million fund from investors, which include A16z, FTX, and Binance Labs. Mythical Game is a gaming studio offering services for game developers and builders to build or integrate blockchain-based play-to-earn economies into their games

Square Enix, the game developer of Final Fantasy, Dragon Quest, and the publisher of Tomb Raider described plans to further explore the NFT space by offering collectibles and blockchain-driven video games.

Even AAA game developers like Electronic Arts (EA) see the future of NFT and the play-to-earn model. Andrew Wilson, CEO of Electronic Arts (EA), said that NFTs and play-to-earn games are the gaming industry’s future even though it’s still early to figure out how that would work.  Electronic Arts is known for many game series such as Battlefields, FIFA or The Sims. Especially, The Sims is a virtual reality game that is close to the metaverse.

In the Q2 earnings call, CEO of Ubisoft also expressed intentions for investment in and adoption of blockchain-centric gaming companies on the platform. Ubisoft is the creator of popular games such as Assassin’s Creed, Far Cry and For Honor.

4. BTS agency, Hybe, partners with Upbit to sell NFT photo cards.

BTS is a boy group with the biggest fan base in the world (ARMY). It is estimated that the fan base of BTS is about 22 million, the fans are famous for big spendings for their idols. On average, a BTS fan spends over $1,400 on the group. So when they join the NFT space, they will spend a lot of money on those NFT Photo cards of their idols.

 

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