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Many NFTs related to gaming and NFT, such as Gala (GALA), The Sandbox (SAND), Axie Infinity (AXS), and Decentraland (MANA), have witnessed a downtrend in the last 24 hours.
The native token of the platform, SAND, suffered a decline of 9% as of May 24, as per the data from CoinMarketCap. Its ATH was recorded in November 2021 at $8.44. Currently, it is trading at $1.25.
AXS, the token that fuels the popular P2E game Axie Infinity, too suffered a drop of around 8% on the same day. AXS, too witnessed its ATH of $165.37 in November 2021. At the time of writing, it was trading at $20.46.
MANA, the native token of Decentraland, too joined in the free fall and was 9% down as of May 24. An in-game token, MANA lets holders, acquire NFT-based LAND tokens within the game and buy wearables for their avatars. GALA, the native token of the NFT gaming ecosystem of Gala, too dropped 8.23%.
At the time of writing, the token was trading at $0.08019, according to the data from CoinMarketCap.
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What’s The Reason Behind The Crash?
The plummeting NFT prices are being considered the likely reason behind the decreasing price action of the assets.
Dune Analytics data reveals that the trading volume on the NFT marketplace has dropped down to levels before January 2021.
The source of revenue for Axie Infinity is marketplace fees and breeding fees. On the creation of a new Axie creature, a breeding fee of 0.5 AXS is charged, while whenever Axis are traded, a marketplace fee of 5.25% is charged.
The total secondary market land sales were down by 54% in Q1 2022 compared to Q4 2022 for Sandbox.
Within the first 30 days of purchase, around 10% of users sell their NFTs in the Sandbox, and out of that, 72% of them have held onto their NFTs for one to three months.
GALA, too, has suffered the wrath of the heat, with increasing interest in play-to-earn games.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
