Last Updated on February 19, 2022
- All the leading metaverse tokens spiked nearly 30% last week.
- Tezos tied a deal with a sporting giant boosting its weekly gains to over 29%.
- Telos rocketed nearly 100% and it is still climbing.
The first week of February is perhaps the first this year to experience a marketwide bull-run across metaverse and NFTs & Collectibles tokens. All the biggest tokens by market cap rallied more than 20%, with some gaining nearly 50% as optimism returned to the market.
Overall, all the tokens tagged under the metaverse on Coinmarketcap are now worth about $31.5 billion while NFTs and Collectibles tokens now have a total market cap of $47.8 billion.
In this edition of the weekly Token Boom report, we look at how the market bounced back from four consecutive weeks of declines.
The metaverse is booming again
The metaverse is made up of mainly gaming and digital land tokens. In the last seven days, UFO Gaming (UFO/USDT), the Decentraland (MANA/USD) and Axie Infinity (AXS/USD) all spiked significantly setting up the trend for the rest of the industry.
UFO Gaming is one of the leading inter-galactic social games. The $UFO token is 100% owned by the community. It also offers players an opportunity to own virtual land, NFTs and play-to-earn (P2E) income. UFO Gaming also acts as an IDO launchpad for Dex projects.
Technically, the UFO gaming token spiked more than 90% between Monday and Wednesday before trading in a relatively sideways trend formation for the remainder of the week.
The rally started after the game launched its bi-weekly update on YouTube, dubbed UFO “Gaming Fortnightly Update”
Technically, traders could target a retest of weekly highs at $0.000017, or a short-term pullback to $0.000014.
Decentraland is the largest virtual real estate metaverse with a market cap of over $6 billion. The platform announced a series of events that will be launching this week, including the Meta Lite Bar and Samsung’s 837X Metaverse.
Decentraland’s MANA token spiked more than 38% between Thursday and Sunday.
Technically, MANA seems to have pulled back slightly after hitting $3.38. Although it still trades closer to the overbought levels of the 100-hour moving average, traders could still target a rebound towards $3.38, while pullbacks are likely to find support at $3.19.
After plummeting nearly 40% in the final week of January, Axie Infinity bounced back in the last seven days, rallying more than 50% to reach a market cap of $4.2 billion, just below Sandbox’s $4.28 billion.
Just like UFO Gaming, Axie is launching a bi-weekly podcast to be aired every other Tuesday. The platform is already one of the most active metaverse projects on Twitter and seeks to enhance engagement by launching a podcast.
Axie Infinity’s rally began on Thursday, spiking more than 50% over the next three days. The AXS token has since pulled back slightly creating a rebound opportunity. AXS is the governance token of the metaverse gaming and virtual land project, and players are encouraged to own some.
Traders could target upward profits at about $72.07, while $66.34 is a support level.
Telos led NFTs and Collectibles tokens, Tezos led the headlines
The NFTs and Collectibles tokens segment is composed of both video gaming tokens, blockchain platforms, and NFT marketplaces among others.
Although some traders tend to focus on NFT marketplace tokens, some of the most secure tokens in the NFTs and Collectibles segment are issued by blockchain platforms on which the NFT marketplaces are built. This also includes tokens of Ethereum scaling protocols like Telos (TLOS/USD) and Immutable X (IMX/USD).
On the other hand, proof-of-stake blockchain ecosystems like Tezos (XTZ/USD) and The Flow (FLOW/USD) have become popular in the NFTs and smart contracts space,
This week, Telos token led the charts while Tezos captured the headlines.
Telos is a layer 2 Ethereum scaling protocol that allows developers to launch fast executable DeFi and NFT tokens on the Ethereum network. The platform enables the execution of transactions at 0.5s block times, with the scalability of up to 10,000 transactions per second, thus making it a perfect platform for developing gaming tokens.
Technically, the $TLOS token spiked nearly 97% over the last seven days and crypto enthusiasts expect it to continue gaining this week.
Writing on Twitter, one user tweeted:
If the rally continues as anticipated, investors could target profits at $1.5, while $1.3 will provide support.
Although the XTZ token may not have dominated the charts in the past week, Tezos the company did. The blockchain ecosystem nailed a yet to be officially announced sponsorship project with leading footballing (soccer) giant Manchester United in a multi-year deal worth about $27 million per year. Tezos will appear on Manchester United’s training kit, previously donned by the US insurance giant Aon. Like Telos, Tezos offers fast executions speeds and scalability for NFTs and related projects.
Technically, the XTX token rallied more than 29% between Monday and Saturday, before pulling back slightly on Sunday.
Therefore, with the token yet to reach overbought conditions of the 14-hour RSI, traders could target rebound profits at $4.07, while $3.86 and 3.77 are crucial support levels.
The Flow is another blockchain ecosystem that allows developers to create massive and fast executable projects. Like its close relatives Telos and Tezos, it is perfect for launching NFT and DeFi tokens for gaming.
The Flow Blockchain announced on Friday that DAZN Group will join the platform this week after partnering with Mixi PR to create the DAZN MOMENTS marketplace.
DAZN are bringing their sports catalogue to the Flow, the platform tweeted.
Technically, the Flow rallied more than 38% between Feb. 3 and Feb. 6, before pulling back slightly on Monday morning.
This may have created an opportunity for investors to target rebound profits at about $7.88. On the other hand, $7.11 is a crucial support zone.
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