As Crypto Markets Tank, Metaverse Tokens Buck the Trend

Kraken research indicates metaverse and exchange tokens were only sectors that saw year-over-year growth

article-image

Source: Shutterstock

share

key takeaways

  • Crypto metaverses empower individuals through decentralization, according to Kraken
  • Metaverse token performance is up a collective 395%

The digital currencies that power the metaverse are up a collective 395% in the past year, an outlier in a broader dismal crypto downturn, according to a new report. 

Popular metaverse projects The Sandbox, Decentraland, Sommium Space and Voxels are among the leaders in user activity, according to the report by Kraken Intelligence and CoinGecko.

Decentraland’s MANA is up 41%; The Sandbox’s SAND 470%; Axie Infinity’s Axie Infinity Shards (AXS) 511%; and Stepn’s GMT 746%. 

Though May brought negative price moves across the crypto board, including for bitcoin (BTC) and ether (ETH), metaverse tokens registered the highest level of volatility out of all sectors.

Sector Breakdown; Source: Kraken
Sector Breakdown; Source: Kraken

And NFTs, which play a significant role in blockchain-based gaming and the metaverse writ large, also saw flat daily usage amid a large decline in May — with daily volume dropping 87.1%, according to the report. 

The year-over-year performance of metaverse tokens, which can be used to buy digital land, NFTs (non-fungible tokens) and participate in governance, is largely attributed to the NFT resurgence.

Loading Tweet..

The Sandbox’s digital economy reported cumulative NFT sales volume at $473,665,766 and three million registered wallet users.

Sebastien Borget, chief operating officer of the Animoca-owned platform, told Blockworks the metaverse is “an unstoppable digital nation in the making that already brings entertainment, fashion, gaming music and art all together, offering long-term perspectives through clear utility for NFTs.”

He added the reason the metaverse and tokens such as SAND has outperformed crypto more broadly over the past year is due to continued demand for land from global brands from Hong Kong, Dubai and Korea that are acquiring NFT avatars and engaging in play-and-earn events.

Ethereum-based metaverse Decentraland, registered the second-largest cumulative NFT sales volume at $216,471,162, through the first quarter, behind The Sandbox.

Giovanna Graziosi Casimiro, events producer at the Decentraland Foundation and head of Metaverse Fashion Week, told Blockworks that amped up trading of virtual land plots is driving growth in Decentraland.  

“Wearables represent a medium of self-expression and identification, propelling a unique creator’s economy and ecosystem,” Casimiro said.

Referring to Metaverse Fashion Week, which Decentraland hosted in March, she said it “inspired the entrance of legacy, world-renowned fashion brands into our marketplace and expanded the discussion on NFTs as bridges between the physical and digital.” 

Another NFT-based and gamified metaverse, Treeverse, is challenging the terminology behind crypto-native worlds in a bid to attract more mainstream gamers. A developer for parent company Endless Cloud tweeted on Thursday it plans to stop using the term NFTs.

Loading Tweet..

Kraken is planning to launch its crypto exchange in the United Arab Emirates capital Abu Dhabi, as well as its own NFT marketplace.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

Decentralized money was a “very unpopular goal” when concepts were proposed in the ’90s, said Nick Szabo

article-image

Cove aims to deliver “risk-adjusted yield” through curated DeFi vaults

article-image

The best capital markets are open to the most people — and crypto capital markets are open to everyone

article-image

Post-conference musings on Firedancer, Kraken, Solana Mobile and Trump

article-image

Executives expect others to follow SharpLink Gaming’s lead in purchasing an asset that has surged this past month

article-image

After a weekend of tariff policy shifts, investors appear confident that trade deals are underway