Metaverse gaming cryptos are highly cyclical assets. While they aren’t particularly hot right now due to the economic headwinds, that doesn’t mean they don’t have potential going forward. In fact, the play-to-earn frenzy during the post-pandemic period offered a glimpse of the upside potential these projects have if such an economic climate ever returns. Even then, some gaming cryptos aren’t the safest of investments. Thus, investors should carefully scrutinize and examine the risk-reward each crypto offers. With that in mind, I believe the following three metaverse gaming cryptos are worth looking into if you are adamant about investing in metaverse gaming cryptos.
Cheelee (CHEEL-USD) is the governance token of a GameFi short video platform Cheelee. It is a new-generation social media that allows its users to earn while watching their feeds. Cheelee works within the “Attention Economy” framework, meaning viewers receive rewards for their attention. Simply put, Cheelee is a Watch-and-Earn project allowing users to monetize their attention.
Users can use CHEEL to level up their non-fungible token glasses. Higher level — more opportunities to earn. Also, its holders have a voting right on the platform and can decide how it will develop in the future. Based on the fact that Cheelee’s main competitors in the short video platform field are worth billions, it has immense growth potential. CHEEL also has a sustainable financial model, as opposed to all other Play-to-Earn projects that depend fully upon the NFTs sales. At the same time, up to 40% of Cheelee’s total revenue comes from income sources unrelated to the NFT sales, such as ads, collaborations with bloggers and brands, and others.
I believe Cheelee could soon be listed on many of the big-name exchanges due to its substantial growth, even during this bear market.
Axie Infinity (AXS-USD)
Axie Infinity (AXS-USD) is a blockchain-based game where players can collect, breed, battle, and trade token-based creatures known as Axies. Each Axie is a non-fungible token with different attributes and strengths, making them highly variable and often rare and unique. The game has seen impressive usage and remains a leader in NFT-based games.
The gameplay of Axie Infinity is focused on fighting and breeding Axies, with each Axie capable of being bred up to seven times. Lunacia is the homeland of these digital creatures, and players can search for resources and upgrade their plots. On the marketplace, players can trade their Axies and land plots.
Much like other metaverse games, the popularity of Axie infinity has dropped. It is a pay-to-earn game, and most people play for the rewards, and the decline in prices is causing the player count to dwindle. However, Axie Infinity is among the top-name metaverse gaming cryptos, and should the sector ever make a comeback, this game will be one of the first to surge. The token also has less dilution due to lower staking rewards post-boom. Thus, a future price increase will likely be steeper once the craze returns.
When it comes to the gaming metaverse and NFTs, Ethereum (ETH-USD) is the top choice. As the second-largest cryptocurrency by market cap, it is the preferred platform for most Web3 projects.
Ethereum’s innovative approach offers a balance of security and scalability, setting it apart from other high-TPS blockchains. Although its transaction speed may not be as fast as some other cryptocurrencies, layer-2 scaling solutions are expected to address existing scalability issues, and the network’s constant upgrades aim to increase its capacity substantially by 2025. Moreover, Ethereum’s value is likely to increase in the long run due to the recent “Merge” upgrade, which reduced issuance by 88%. This makes Ethereum an attractive investment, given its utility, flexibility, and developer friendliness.
Of course, if you are only looking into high-risk, high-reward assets, I would look into the two projects above. However, I believe ETH still offers multi-bagger potential with the least risk in the crypto industry. ETH also stands to benefit the most from metaverse gaming going mainstream as many of the top metaverse projects are on the Ethereum blockchain.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.