Trading Volumes for Top Play to Earn Tokens Plummet
Trading volumes for the top Play to Earn (P2E) tokens have experienced a massive decline of 98% in June and July compared to the peak of the bull market in November 2021. This decline comes as interest in these tokens wanes and gaming platforms struggle to maintain their momentum. Tokens like Axie Infinity (AXS), Enjin (ENJ), Gala Games (GALA), and The Sandbox (SAND) have all seen decreased activity.
Main Breakdown:
- The monthly trade volume for top P2E tokens has fallen by nearly 98% to just $2 billion in June and July.
- Binance and Korean markets are the main markets for these tokens.
- P2E tokens were particularly popular in Asia Pacific and Latin American countries.
- P2E tokens have seen significant drops in value, including a more than 90% drop for AXS.
- Gamers are becoming disillusioned with gaming tokens that provide little to no reward.
Despite the decline, there are still growth areas within the P2E sector. Tokens with unique use cases, like “vote to earn” tokens, are gaining traction. Additionally, Layer 2 solutions like Polygon are onboarding P2E games and positioning them for the next bull run.
Blockchain Gaming Activity in Late 2022
According to a DappRadar overview of 2022, the P2E sector accounted for almost half of all blockchain activity. However, since early February of this year, tokens associated with web3 gaming have been experiencing a steady decline in value. The market caps of top gaming tokens have fallen month on month.
As of now, The Sandbox’s SAND token is trading at approximately $0.40, with a 5.5% fall in the past week. The native token of the Enjin ecosystem has fallen over 4% in the same period, hovering around $0.29. Axie Infinity’s native token has slumped 3.9% to $5.86, and GALA is down 3.4% in the past day to $0.02.
Hot Take:
The decline in trading volumes and token values for P2E tokens indicates a cooling off of the Play to Earn trend. Gamers are becoming disillusioned with the lack of rewards and the flood of gaming tokens. However, there are still opportunities for growth in tokens with unique use cases and the adoption of Layer 2 solutions.
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