NFT games are going crazy in the market. Prices for a number of the in-game tokens for NFT games are soaring phenomenally, going above and beyond the expectations of usual trends within the cryptocurrency market. It brings up many ideas of the much-hyped cryptocurrency Dogecoin (DOGE). DOGE was once was settling around 6 cents before mooning extraordinarily over the next few months to more than 10 times, breaking an ATH (All-Time Highest) of about 73 cents. Since its ATH about 3 months back, DOGE has diminished in value immensely, currently sitting around 20 cents that is less than a third of its ATH. However, DOGE arguably did not have any utility, while NFT game tokens do: they maintain the NFT game's ecosystem. This also brings up the idea of DeFi coins that have bombarded the market over the past year and appears to be more relatable to NFT game tokens. Comparing the two would provide great insights into the situation of NFT games, creating reasonable predictions on their future.
DeFi coins in simple are the native token of DeFis that are basically banks but decentralised and volatile, the severity of volatility depending on the reputation of the DeFi invested. It is almost always the case that a DeFi will have a native token for it. This is most likely to provide an incentive for people to invest within its farms/pools, giving them the native token at a certain rate for every certain amount of crypto the investor invests, which would be difficult to achieve with another cryptocurrency.
The convenience of creating Dapps within the BSC (Binance Smart Chain) has made it a place filled with DeFis, likely thousands upon thousands out there. If someone was to ask an experienced BSC user on the DeFis provided within the blockchain, they could go on for days talking about the DeFis available. There are so many DeFis within the BSC, and unfortunately, a lot of them are scams, rug pulled by people out for money to treat themselves. There also have been cases of flash loan attacks: someone taking a huge amount of money from a crypto loaning service, slamming it into a DeFi service momentarily, then leaving with the profits of the interest abused by the loaner, the loan returning to the crypto loaning service and the loaner great amounts of profits. These have had detrimental impacts to attacked DeFis, the most popular likely PancakeBunny, causing its native token BUNNY to go down by more than 90%.
When analysing DeFi coins, the most practical manner of during so would be looking at the top DeFis within the market and observing their trends. According to CoinGecko, the top three DeFi coins with a main DeFi service behind them according to market cap are:
1. Uniswap (UNI)
2. Aave (AAVE)
3. Amp (AMP)
Looking at the trends of the three DeFi coins above, they appear to go along a trend as follows: there is a great bullish run with the beginning of the year, followed by great fluctuation that generally inclines upwards, then one final spike that follows with a crash and resistance around the price since its bullish run from the beginning.
NFT Game Coins
NFT game coins are relatively self-explanatory: they are the native tokens for NFT games. NFTs in simple is a unique asset that is recorded for a crypto address within a blockchain. One way to think of it is as any regular cryptocurrency, such as the top two Bitcoin (BTC) and Ethereum (ETH), but each BTC or ETH is special to the holder, one not able to swap with another because they each have different features and value. NFT game coins can be thought of similarly to DeFi coins. They are an incentive for people to play the NFT game, trading the player's effort within the game for the NFT game coin. The top 3 NFT coins mainly based on a single NFT game according to CoinGecko are as follows:
1. Axie Infinity (AXS)
2. Decentraland (MANA)
3. The Sandbox (SAND)
Looking at the trends of the mentioned NFT game coins above, they generally appear to match trends with the DeFi coins shown earlier. The exception here is AXS and the similarity can be brought out by stating that the bullish period and fluctuations of the noticed trend is skipped, AXS moving to the last stage, indicating that a drop is soon to follow. However, one can never be too sure and could possibly be the bullish beginning for AXS, AXS having more to offer. MANA and SAND follow the DeFi trends more closely, the same assumptions able to be applied to these coins like the ones for the DeFi coins above.
Comparing the trends and backgrounds of DeFis and NFT game coins, they appear to compare relatively well. From such, NFT games could be stated as the next DeFis, becoming popular across the crypto world as people look for new ways to quickly earn money. With DeFis becoming popular on the BSC from its convenience in establishing one, having NFT games follow the same pattern is possible, some already beginning. As such, it would be interesting to see how NFT games develop over the following weeks and months, comparing them to their possible second twin DeFis.
Disclaimer: The information above is not financial advice and is for educational and entertaining purposes. All information is of my personal opinion and is based on the research I have made. Any information on this article should not be mistaken as fact, and any decision with crypto means you need to DYOR (Do Your Own Research)