According to CoinDesk, tokens associated with the metaverse, such as Axie Infinity (AXS/USD), The Sandbox (SAND/USD) and Gala (GALA/USD), are down 12% on news that the former Facebook has lost $10 billion.
Meta reported in an earnings report that its augmented and virtual reality division lost $10 billion. Despite the dramatic start, the affected gaming tokens have recovered their losses.
Axie's token falls below $46
AXS fell below $46 in the Asian session. It was trading above $53, below its all-time high of $162 in November, before the gloomy earnings report was released. According to Delphi Digital's research, the drop in token prices was accompanied by a drop in user activity on Axie Infinity. The game's native Smooth Love Potion (SLP) token is related to this. Today, SLP has spiked by 20%.
Delphi analysts wrote.
With the drop in SLP prices, players are not making as much money compared to a few months ago. At its peak, players could earn $35 per day on July 21, compared to $1 today at current prices (assuming 100 SLP/day). This has caused many players to stop playing the game due to the significant drop in revenue.
10% loss for SAND and GALA
SAND lost 10% of its value after Meta's report. GALA fell from $0.20 to $0.18. A broader market recovery could help stabilize both tokens.
The metaverse concept gathered momentum last year with the rise of irreplaceable tokens (NFTs). For now, the metaverse game continues to cater to the cryptocurrency market niche, while Meta's Facebook Reality Labs and other virtual reality divisions rise in the red.
Are metaverse stocks and metaverse tokens related?
According to some developers, the market performance of traditional metaverse-focused companies could lead to a correlation in metaverse-based tokens. Adrian Krion, CEO of Spielworks, told CoinDesk in an email that
There is certainly a correlation between Meta’s success and its metaverse efforts and the perceived potential of metaverse/game earning programs and tokens. Since Facebook’s name change, interest in the space has risen dramatically, so any setback in Facebook’s metaverse strategy will directly impact the perceived market for other metaversees.
Despite the losses, Meta isn't giving up. According to CEO Mark Zuckerberg, the company will continue to develop its AR goggles, Nazara, and release a high-end virtual reality headset by the end of 2022.
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