Gaming Token Market Cap Soars Above $30 Billion: What's Driving This Frenzy?

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

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

Over the past week, the market capitalization of gaming crypto tokens has increased by almost 11%, reaching over $30 billion as of June 6, according to CoinMarketCap.

What is really happening?

The meteoric rise of Notcoin

Leading this charge is Notcoin (NOT), which has seen a staggering 135% increase in value and is now trading at $0.02187.

Amid this surge, Notcoin's market cap has skyrocketed to $2.24 billion, comfortably placing it in the top 50 cryptocurrencies by market cap.

With trading volumes 24 hours a day excessive At $1.8 billion, it also ranks ninth among the most traded cryptoassets.

A key factor behind Notcoin's rise is its integration with Telegram. This partnership allows Telegram's extensive user base (over 1.5 billion registered users and over 800 million active users) to easily access and use Notcoin.

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

Floki's Steady Rise

Hot on Notcoin's heels is Floki (FLOKI), which has gained over 30% in the last week and is up over 64% over the last month, trading at $0.000315.

The recent rise in Floki value can be attributed to a move by cryptocurrency trading company DWF Labs. They announced plans to purchase $12 million worth of FLOKI tokens on the open market and in the Floki treasury.

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https://twitter.com/el_crypto_prof/status/1798114366887243883

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

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

<h2 class="wp-block-heading" id="buzzing-crypto-gaming-market”>crypto Gaming Market Buzz

The crypto gaming market is full of excitement, fueled by recent developments and substantial investments.

The great step of the Xai Foundation towards to integrate Traditional Web2 developers in the cryptocurrency world are a great example. They are partnering with venture capital firm Outlier Ventures to launch the Xai Tokenomics Bootcamp.

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

Meanwhile, the first quarter of 2024 has been kind to the cryptocurrency market. The culmination of the cryptocurrency industry's long battle against the SEC and the approval of spot bitcoin ETFs in the US have revitalized investor sentiment.

The positive vibes have spread to the Web3 gaming sector. According DappRadarIn the first quarter alone, investments reached $288 million, and in April investments soared to $988 million, the highest monthly investment since January 2021.

Meanwhile, the average unique active wallets for gaming dApps almost reached 3 million daily in April, a record high, 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 generated massive interest. What is driving the rumor?

Decoding the Rumor: ethereum Account Abstraction and Layer 3 Solutions

This time, what is being talked about is the new ethereum (eth) technology called ethereum-development/wallets/account-abstraction-and-erc-4337″ target=”_blank” rel=””>Account abstraction and the rise of layer 3 blockchain solutions.

Account Abstraction replaces traditional wallets with programmable smart contracts, making the user experience more seamless and secure. Eliminates the need for seed phrases and allows for familiar login methods, such as email or Google accounts. Additionally, it introduces sponsored transactions, which reduces 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 smooth, free-to-play gaming experience that is as good, if not better, than traditional Web2 games.

Therefore, broader trends indicate that the current bull market may also lead to gains in the cryptocurrency gaming market, and we are likely to see more pumps in the coming days. However, trade wisely and never invest more than you can afford to lose.