At present, the cryptocurrency market is navigating in dangerous waters. While the performance of the heavyweights like Bitcoin, Ethereum, and other top 10 rankers have been relatively pacified, the fintech experts have pointed out some of the biggest losers. GameFi and Metaverse native tokens are not doing very well on the market, citing some of the most visible loss margins.
The recent cascading trend of the digital asset market is a result of the recession projections by several economists and financial market experts. The investors are seeking safer positions leaving behind the losing bets and trying to find salvage in bonds. At this crucial turning point, investors are removing Metaverse and GameFi tokens on priority, citing them to be the biggest liability under the current circumstances.
GameFi and Metaverse Projects are Facing Massive Selling Pressure
The STEPN project native token called GMT sustained a 27% intraday fall. Meanwhile, popular projects like ApeCoin and Axie Infinity were unable to not get wrapped up in the cascading fire and garnered heavy losses in double digits. Market analysts cite that such cascading events can prove detrimental for several Metaverse and GameFi projects.
Towards the weekend close, GMT has managed to lose 41% since its ATH of $4.11 only eight days ago. GMT was also considered an icon for the increasing success of the Metaverse project tokens. GMT native to STEPN was cited as an example by Metaverse endorsers as one of the top gainers, showing 3000% price appreciation since its launch two months ago.
Another play-to-earn token from a Metaverse gaming project called Axie Infinity is also face-to-face with massive selling pressure. On-chain metrics reveal that the Axie Infinity token is down 16% on the intraday trading. The gaming platform has been struggling to keep players online and active on the network since the start of the current year.
Same discouraging trends are seen for ApeCoin, a digital token pegged to the price appreciation of NFT collection Bored Ape Yacht Club, citing a 17.5% decline. Another major reason behind the poor performance trends of the cryptocurrency market is connected to the policies of England’s Central Bank. Governor Andrew Bailey has predicted that inflation can reach 10% by December this year, and he also projected a strong probability of a steep economic decline.