Axie Infinity & OpenSea NFT Market May Jumpstart Altseason
Altseason appears to be finally upon us after several months of speculation regarding a potential altcoin price rally.
You may be asking what is Altseason? Considering the fact that the crypto industry is primarily dominated by the performance of Bitcoin, Altseason (or, altcoin season) is based on the principle that Bitcoin returns tend to move against the returns of altcoins. It is essentially the inflection point when money, which started coming into Bitcoin around its scheduled halving, starts to flow to Ethereum and other cryptocurrencies. In the past, each time a halving event has taken place, a bull run has typically followed wherein the price of Bitcoin increases. After that, investors have typically moved their funds out of Bitcoin and into alternative coins thus making money flow into alt coins faster than it flows into Bitcoin. In short, as money leaves Bitcoin it drives the value of altcoins up, ushering in what we refer to as altseason which has historically led to massive appreciation in valuations and price of cryptocurrencies with small market caps.
Check out this video below for an explainer on altseason!
A few factors have experts speculating that we are at the cusp of an altseason. Most notably, the NFT market which is lush with potential and has managed to rake in billions of dollars worth of sales and value for their respective altcoins. This, coupled with Bitcoin’s current dominance in the market, has many anticipating another altcoin run.
OpenSea NFT Market In Spotlight as Sushi Sets to Launch Shoyu
The non-fungible token (NFT) marketplace OpenSea has captured headlines this week after it managed to overtake the popular DeFi exchange Uniswap. Previously, Uniswap has consistently been ranked the #1 marketplace when measured by daily transaction fees, however, OpenSea NFTs nabbed first place this week with over $1.9 million in gas being spent on transaction fees in a single 24 hour period. Further, OpenSea surpassed $428 million in trading volume in the most recent week, cementing its lead on Uniswap.
Also buzzing on the NFT market front is news of the popular Ethereum-based decentralized exchange SushiSwap launching the NFT marketplace Shoyu. Anticipated to launch mid-August, this marketplace is dedicated to collectibles and a 3D “metaverse”. Interestingly enough, the protocol will also allow anyone owning a Sushi token to receive a portion of the fees generated by this project, with a rumored 2.5% of each transaction being returned to holders.
Keeping in line with the trend of greener and more efficient crypto, Shoyu’s contracts also promise to minimize gas fees.
With a market capitalization just above $1 billion, SushiSwap has managed to overtake the decentralized exchange world by storm and is considered to be one of the biggest DeFi projects in the market. The launch of the Shoyu marketplace will only improve its standing, as NFT and DeFi tokens are primarily driving the current crypto rally. NFTs have surged in popularity as of recent, with digital artworks selling for tens of millions of dollars. Most recently, a British computer scientist who is credited with inventing the world wide web announced he would auction off the original time-stamped files containing the source code as an NFT.
Axie Infinity is the First Unicorn of NFT Gaming
Axie’s Ethereum based NFT game Infinity has now made headlines by hitting a record $1.1 billion in sales, becoming the world’s highest-grossing NFT project and is being dubbed the first “unicorn” in NFT gaming. Axie joins others in the budding gaming ecosystem that is currently exploding in the NFT space alongside collectibles. In NFT gaming, players compete with one another to earn rewards such as tokens and NFT collectibles.
The impressive game has the backing of big names like billionaire investor and Dallas Mavericks team owner Mark Cuban and co-founder of Reddit, Alexis Ohanian. Fun and engaging, Infinity allows users to breed, buy, and sell digital pets known as Axies, with each Axie being minted as an NFT. Back in June, the game was enjoyed by 110,000 daily active users, but that number has now jumped to an overwhelming 1.02 million this month, marking an 830% increase in just under 2 months.
For more information on the world of NFT gaming, check out the video below.
At the time of publishing, Bitcoin was trading at $46,200, Ether at $3,240, and Litecoin at $171.