It's been an exciting few days for Metaverse enthusiasts, especially when it comes to ratings through the cryptocurrency board. While the broader market is quite shaky and indecisive, with a few exceptions, of course, play-to-earn and metaverse tokens are popping up.
Looking at CoinMarketCap's Metaverse tab tells us that over 80% of projects that have anything to do with this topic are trading green on a weekly basis.
Among the leaders, especially in the last two days, is The Sandbox (quotation SAND). The cryptocurrency has risen more than 110% on the week and shows no signs of slowing, trading above $ 8 and setting new highs every day. It is also the third largest play-to-earn (P2E) token in terms of market capitalization.
The largest project - Decentraland - managed to overtake Axie Infinity in market capitalization following an impressive 56% weekly increase. MANA is now worth over $ 5,60, while AXS is lagging behind with only 5% earnings in the last week.
Other noteworthy mentions include MyNeiversoAlice (ALICE) - up 100%, Enjin Coin (ENJ) - up 57,61%, Ultra (UOS) - up 105%, Mines of Dalarnia (DAR) - in 104% increase and so on.
What's driving the surge?
There doesn't seem to be any particular reason behind the massive rise in P2E coins other than the general hype that has followed them since Facebook was renamed Meta.
However, it's also worth remembering that a lot of smart infrastructure money has been invested in this market segment since it happened. As previously reported, Enjin is preparing to explore the metaverse by setting up a $ 100 million fund, seeking to help projects in the ecosystem designed to decentralize it.
Additionally, KuCoin - a leading cryptocurrency exchange - has also launched a $ 100 million fund through its investment and research arm - KuCoin Labs - also looking to fund early stage projects in the field.
Meanwhile, several high-profile institutional investors and venture capital firms such as twins Winklevoss, Marc Andreessen, Alan Howard, and Digital Currency Group (DCG) have raised an additional $ 100 million to accelerate the emergence of the metaverse through Sfermion, a company of NFT investment.
It appears that smart money is betting heavily on the success of this particular market segment, and as of press time, valuations are reflecting.