Gaming tokens market cap soars above $30 Billion: what’s driving this frenzy?

What factors are driving the gaming tokens market cap beyond $30 billion, and which tokens are leading this surge?

Gaming crypto tokens are having their moment in the sun, sparking excitement among traders with a wave of positive market sentiments.

Over the last week, the market cap for gaming crypto tokens has surged by nearly 11%, reaching over $30 billion as of June 6, according to CoinMarketCap.

What’s really happening?

Notcoin’s meteoric rise

Leading this charge is Notcoin (NOT), which has experienced a jaw-dropping 135% surge in value, now trading at $0.02187.

Notcoin one-week price chart | Source: CoinMarketCap

Amid this surge, Notcoin’s market cap has soared to $2.24 billion, placing it comfortably among the top 50 cryptocurrencies by market cap.

With 24-hour trading volumes exceeding $1.8 billion, it also ranks 9th among the most traded crypto assets.

A key factor behind Notcoin’s rise is its integration with Telegram. This partnership allows Telegram’s vast user base—over 1.5 billion registered users and more than 800 million active users — to access and use Notcoin easily.

What sets this apart is the Play-to-Earn (P2E) model introduced by Notcoin on Telegram. Users can engage in various games and tasks directly within the Telegram app and earn Notcoin as a reward.

Floki’s steady climb

Hot on Notcoin’s heels is Floki (FLOKI), which has gained over 30% in the last week and surged by more than 64% over the past month, trading at $0.000315.

FLOKI one-week price chart | Source: CoinMarketCap

The recent boost in Floki’s value can be attributed to a move by the crypto trading firm DWF Labs. They announced plans to purchase $12 million worth of FLOKI tokens from the open market and the Floki treasury.

This move follows a previous commitment in February 2024, where DWF Labs bought $10 million worth of FLOKI tokens, resulting in a 50% jump in prices the following week.

The Floki team is also preparing to launch the mainnet version of its flagship utility product, the Valhalla metaverse game, later this year. DWF’s substantial investments are expected to support this venture and provide the necessary liquidity for growth.

Buzzing crypto gaming market

The crypto gaming market is buzzing with excitement, driven by recent developments and substantial investments.

The Xai Foundation’s big move to integrate traditional Web2 developers into the crypto world is a prime example. They’re teaming up with venture capital firm Outlier Ventures to launch the Xai Tokenomics Bootcamp.

This bootcamp is designed to help developers transition from traditional gaming models to blockchain-based ones, focusing on game asset ownership, token use, player rewards, and better security.

Meanwhile, the first quarter of 2024 has been kind to the crypto market. The culmination of the crypto industry’s long battle against the SEC and the approval of spot Bitcoin ETFs in the U.S. have reinvigorated investor sentiment.

The positive vibes have spilled over into the Web3 gaming sector. According to DappRadar, in the first quarter alone, investments hit $288 million, with April seeing investments soar to $988 million, the highest monthly investment since January 2021.

Meanwhile, the average unique active wallets for gaming dApps almost hit 3 million daily in April, a record-setting figure, almost 28% of the entire dApp industry.

Big players like a16z, Bitcraft Ventures, and Ubisoft Studios are pouring money into this space, showing their strong belief in the future of Web3 gaming.

This surge in investment is reminiscent of early 2021, when new technologies like NFTs and DeFi protocols drove massive interest. What’s driving the buzz?

Decoding the buzz: Ethereum’s account abstraction and layer-3 solutions

This time, the buzz is about Ethereum’s (ETH) new tech called Account Abstraction and the rise of Layer-3 blockchain solutions.

Account Abstraction replaces traditional wallets with programmable smart contracts, making the user experience smoother and more secure. It eliminates the need for seed phrases and allows for familiar login methods like email or Google accounts. Plus, it introduces sponsored transactions, reducing the burden of gas fees.

Layer-3 solutions, or application-specific blockchains, make transactions faster and cheaper. Combined with Account Abstraction, these technologies promise a seamless, free-to-play gaming experience that’s just as good, if not better, than traditional Web2 games.

Hence, the broader trends indicate that the current bull market may also sprinkle gains towards the crypto gaming market, and we could likely see more pumps in the days to come. However, trade wisely and never invest more than you can afford to lose.