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
  • 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: KrakenSector 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

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

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.

recent research

Research Report Templates (8).png

Research

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

article-image

BTC finished the week up 1.6%, while L2s, RWAs and the treasury trade continued to grind lower

article-image

DTCC moves DTC-custodied Treasuries onchain via Canton, while Lighter’s LIT launches trading at a fees multiple in Hyperliquid territory

article-image

In the 90s, rapt audiences worldwide watched a coffee pot — will that fascination ever turn to crypto?

article-image

Some systems improve by failing — and crypto has no choice

article-image

Yield Basis introduces an IL-free AMM design that already dominates BTC DEX liquidity

article-image

Maybe tokenholders don’t need the rights that corporate shareholders have come to expect

Newsletter

The Breakdown

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

Blockworks Research

Unlock crypto's most powerful research platform.

Our research packs a punch and gives you actionable takeaways for each topic.

SubscribeGet in touch

Blockworks Inc.

133 W 19th St., New York, NY 10011

Blockworks Network

NewsPodcastsNewslettersEventsRoundtablesAnalytics