Since the start of the year, the tokens blockchain games have seen a significant increase in value. For example, the price of $AXS rose about 30% within the last 30 days. Other GameFi coins have also seen considerable increments in value. Is this an opportunity for investors?
Understanding the Recent Bull Run
Before we can ascertain if the recent increase in the value of blockchain tokens is an opportunity for investors, we have to understand what causes these increments. At the start of the year 2023, there was an increase in the price of bitcoin. After maintaining the support of around $18,000, the leading cryptocurrency broke the $18k mark.
It rose to about $22,000, before dropping and retracing to about $21,700. Since then, it has been a case of steady climb and healthy retraces. The recent occurrence is the rise to about $25,000 before retracing to around $24,100.
For those who have been around long enough, almost every bull run takes the same pattern. Bitcoins take the initiative, while altcoins join the rally later on. This recent occurrence has been no different. So far, $BTC has been at the forefront. In fact, most GameFi tokens have not exactly begun their rally and the increases have not been as significant as expected.
Does the Change in the Price of Blockchain Games Tokens Signify an Opportunity for investors?
Despite having an incredible start to the year, investors do not seem precisely keen on purchasing the coins of blockchain games. This is probably because many stakeholders are still observing the growth trend of bitcoin. There have been cases of bear traps in the past and people are scared of getting burned. Does this mean that there is no opportunity for investors?
As mentioned above, altcoins (which include GameFi coins) begin their rally much later. This implies that these tokens will start hitting their high prices in due time if bitcoin continues with its current run. At this pace, $BTC seems to be on a healthy and steady climb. It is totally contrasting with the bull run of 2019-2020, where the price shot up astronomically.
With the gradual price increase, there will be less severe retraces. In turn, this will ensure that the market is less volatile. A more stable market means a longer bull run period that gives altcoins enough opportunity to rally. So, yes. Blockchain games will provide an opportunity for investors.