Annual Market Growth and Tokenization in the Crypto Industry
Get your daily, bite-sized digest of crypto and blockchain-related news – investigating the stories flying under the radar of today’s news. In this edition, we explore the exceptional year for digital assets in 2023 and the rise of tokenization in the gaming industry.
Digital Assets Market Cap Soars in 2023
2023 has been an exceptional year for digital assets, with Bitcoin’s market capitalization increasing by a peak of 172%, according to on-chain analysis firm Glassnode. Ethereum and the wider altcoin ecosystem have also experienced significant growth, with a 90% increase in their market caps. This surge in the market has resulted in the breaking of several important technical and on-chain pricing models.
The rally since late October has been responsible for most of the gains in the market. Digital assets have also outperformed traditional assets, such as Equities, Bonds, and Precious Metals, throughout the year. Notably, Bitcoin’s deepest correction closed just 20% below the local high, indicating favorable buy-side support and a balanced supply and demand.
Bitcoin transaction volumes remained stagnant until October, signaling a shift in the market phase. Exchange inflow and outflow volumes for BTC and ETH have shown an increase throughout the year, indicating an expansion in spot trading interest. Bitcoin transaction counts reached new all-time highs this year, driven by the rise of Ordinals and Inscriptions, while long-term holders currently hold a near all-time high of the bitcoin supply. Additionally, a super-majority of coins are now held in profit.
“2023 has been a remarkable year for digital assets, with significant growth in market capitalization and outperformance of traditional assets. The market rally and increased transaction volumes demonstrate a positive market sentiment and growing interest in spot trading.” – Glassnode
Tokenization Revolutionizes Gaming Industry
Tokenization has gained momentum in the gaming industry, offering players seamless experiences across different online games and marketplaces. Immutable, a gaming company, has officially launched Immutable Passport, a universal profile system that allows players to carry their identity, achievements, and digital assets across various platforms. This solution has already been integrated into popular Web3 games like Gods Unchained, Blocklete Golf, Bleacher Report Watch2Earn, TokenTrove, and AtomicHub.
In celebration of the debut of Immutable Passport, Gods Unchained players utilizing this solution will receive a free NFT (in-game cosmetic item) airdrop. Other launch partners include Bleacher Report Watch to Earn (B/R W2E), which is a loyalty program that leverages Web3 technology and real-time gamification. This tokenization trend extends beyond gaming as well.
Tokens.com Corp., a publicly traded company, has announced the launch of Valor, a proprietary e-commerce platform within Metaverse Group that enables product placement and advertising within virtual gaming worlds like Roblox and Fortnite. Valor serves as a loyalty program, allowing clients to place branded products in games. Players can engage with these products through the Valor app, which provides offers and rewards for participating brands.
“Tokenization is transforming the gaming industry by enhancing player experiences and creating new opportunities for brands to engage with their audiences. Immutable Passport and Valor are examples of how tokenization is driving innovation in the gaming and advertising sectors.” – Industry Expert
