Why Crypto Gaming Tokens Are Set to Pump Soon and Remain Undervalued

Published on December 12, 2024

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Always do your own research and consult with a financial professional before making any investment decisions.

The crypto market is buzzing with narratives like meme coins, AI, and layer ones driving explosive growth. Yet one narrative remains surprisingly undervalued despite its strong historical performance: crypto gaming tokens. In this blog post, we’ll explore why gaming tokens are set to pump soon, how they compare to other sectors, and highlight some standout opportunities in the space.

1. Gaming Tokens Are Lagging Behind in Market Cap Dominance

While most altcoin sectors have experienced significant growth since the bear market, gaming tokens remain at historical lows in terms of market cap dominance.

  • Gaming Dominance in 2021: 1.5% of the total crypto market during the metaverse boom.
  • Gaming Dominance Today: Only 0.4%, comparable to December 2022 bear market levels.

Comparison to Other Sectors:

  • Meme Coins: Dominance has tripled from under 1% to nearly 3% in 2024.
  • AI Tokens: Up from 0.63% to 1.16% in the same period.
  • Layer 1s: Doubled their dominance from 5% to 10%.

While gaming tokens have underperformed relative to these sectors, this lag represents a unique opportunity to accumulate them at undervalued levels.

2. Bitcoin Dominance Signals Altseason

Bitcoin dominance is falling, a clear signal that the market is entering altseason. Historically, gaming tokens have thrived during such periods as investors diversify into narratives with high upside potential.

Despite altseason trends, gaming tokens have yet to experience a sector-wide rally, suggesting their best days are ahead. This creates a strong case for rotating into gaming tokens now before the market catches up.

3. Gaming Tokens vs. Bitcoin: A Performance Gap

Year-to-date performance of gaming tokens has been underwhelming compared to Bitcoin:

  • Most gaming tokens have underperformed Bitcoin, with only a few exceptions, such as Superverse, showing strong relative performance.
  • In contrast, meme coins, AI tokens, and layer ones have consistently outperformed Bitcoin, making gaming tokens one of the few remaining undervalued narratives.

This underperformance creates an ideal entry point for investors looking for high-growth opportunities in the crypto space.

4. Historical Context: Gaming as a Proven Narrative

Gaming has historically been a major driver of crypto adoption:

  • The 2021 Metaverse Boom brought widespread attention to blockchain gaming, with projects like Axie Infinity and Sandbox reaching massive valuations.
  • Gaming offers intuitive real-world applications for blockchain, such as NFTs, in-game assets, and decentralized economies.

While the metaverse hype has cooled, new gaming projects with better tokenomics and community-driven approaches are emerging as the next leaders in the space.

5. Technical Analysis: Signs of a Breakout

Market cap dominance charts for gaming tokens reveal a key insight:

  • The gaming sector is consolidating at bear market bottom levels and showing early signs of a breakout.
  • Unlike meme coins and AI tokens, which have already rallied, gaming tokens offer the potential for higher beta returns as the sector gains momentum.

Notable gaming tokens like Superverse and Beam are leading the charge, with both showing strong performance against Bitcoin and broader market trends.

6. Top Gaming Tokens to Watch

Superverse (SUPER)

  • Why It’s Leading: SUPER is the only gaming token that has consistently outperformed Bitcoin over the past year. Its strong community focus and minimal sell pressure from early investors make it a standout pick.
  • Key Developments: SUPER recently reintroduced staking, offering airdrops and additional incentives for holders.

Beam

  • Why It’s Promising: Beam has successfully transitioned from an Avalanche subnet to its own layer 1 blockchain, positioning it as a major infrastructure provider for gaming.
  • Key Features: Beam’s move to layer 1 allows it to compete directly with established platforms like Immutable X, but with more optimized scalability for gaming.

Wilder World (WILD)

  • Why It’s Undervalued: WILD offers a polished metaverse experience and is well-positioned to benefit from any resurgence in the metaverse narrative. At a current market cap of $280 million, it remains significantly undervalued compared to its peers.

7. Fair Launch Gaming Tokens: High Risk, High Reward

For those willing to take on higher risk, fair launch gaming tokens represent an attractive opportunity. These tokens are listed at low valuations and lack the sell pressure typically associated with early investor vesting.

Notable Fair Launch Picks:

  1. Xborg: Rallied from $55M to $300M after initial consolidation.
  2. Seedworld: Demonstrated a similar pattern with strong post-consolidation gains.
  3. Super Champs: Launched at $20M and quickly climbed after early sellers exited.
  4. Play (Ready Games): Recently launched at $28M and offers significant upside as early investors exit.

8. The Path Forward for Gaming Tokens

As altseason unfolds, gaming tokens are uniquely positioned to benefit from:

  • Redistribution of Focus: Investors rotating from overextended sectors like meme coins into undervalued narratives.
  • Improved Fundamentals: New projects prioritize better tokenomics, community engagement, and long-term growth over short-term hype.
  • Historical Trends: Gaming tokens have a proven track record of outperforming during altseasons, making them a high-beta play for the coming months.

Final Thoughts

Crypto gaming tokens are arguably the most undervalued narrative in the market today. With dominance levels at bear market lows and technical indicators signaling a breakout, gaming tokens present a compelling opportunity for investors seeking high upside potential.

However, as always, this is not financial advice. Do your own research (DYOR) and ensure your portfolio aligns with your risk tolerance and investment goals.

Key Takeaway

If you’re looking for the next major narrative in crypto, gaming tokens offer the perfect mix of proven potential and undervaluation. Whether you’re focusing on established leaders like SUPER and Beam or exploring high-risk, high-reward fair launch tokens, the gaming sector is primed for significant growth.