Thanks to prominent narratives around the metaverse and non-fungible tokens (NFTs), crypto gaming platforms are becoming one of the main drivers of crypto adoption. Accordingly, many investors are observing the top gaming tokens by market capitalization as potential investment opportunities. However, these gaming tokens serve various functions within the crypto gaming platforms they operate in.
In this article, we’re going to explore the top gaming tokens by market capitalization. Also, we’ll take a look at some of the foundational technology powering crypto games. Plus, we’ll explore some of the different use cases for gaming tokens.
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Top Gaming Tokens
Gaming tokens have become a catalyst for the mass adoption of cryptocurrency and Web3. A broad range of crypto gaming platforms interacts with the blockchain in a variety of ways. Accordingly, many investors see top gaming tokens as a good investment opportunity. However, different gaming tokens have different purposes in each game they serve. For example, some tokens serve as in-game currencies for buying weapons and items, while some are in-game items themselves.
Furthermore, each gaming token plays a different role within a gaming economy. One of the most popular crypto gaming formats is the play-to-earn (P2E) model, whereby players can participate in battles, quests, and events to earn a passive income in a range of top crypto tokens.
The term “GameFi” is synonymous with crypto gaming. It refers to the combination of online gaming and decentralized finance (DeFi). Instead of the usual “play-to-win” model, the play-to-earn model uses financial incentives to reward players for their time and skills, promote adoption of the game, and encourage continued gameplay.
Strategy games are among the most popular types of GameFi games. However, several P2E crypto gaming platforms exist, covering many different gaming styles. One of the most common features throughout the GameFi industry is the use of non-fungible tokens (NFTs).
Non-Fungible Tokens (NFTs)
Unlike fungible currencies such as Bitcoin, Ethereum, and fiat, non-fungible tokens (NFTs) are unique representations of virtual or physical ownership. Fungible assets are interchangeable, meaning that if you borrow $100, you could use any combination of coins or notes to repay the loan. However, NFTs work slightly differently.
NFTs can represent almost any type of asset. In particular, NFTs play an essential role in crypto gaming platforms. They can represent unique and rare in-game items. Moreover, the ability to tokenize assets on the blockchain gives players verifiable digital ownership of in-game assets, enabling them to trace the ownership back to every previous owner. In addition, NFTs can prevent counterfeiting and illegal duplication.
The metaverse is a series of virtual worlds, experiences, and simulated digital environments that use blockchain to enhance social interaction online. Using elements of virtual reality (VR) and augmented reality (AR), the metaverse combines immersive, interactive social experiences, crypto gaming, NFTs, virtual land ownership with virtual workspaces. Furthermore, the metaverse enables users to create and participate in decentralized digital economies.
Top Gaming Tokens by Market Capitalization
Now that we’ve discussed some of the core principles of crypto gaming, let’s take a look at the most prominent crypto gaming tokens. Below, we will explore the top gaming tokens by market capitalization according to CoinGecko. Also, we'll discuss the various roles they play throughout their native crypto gaming ecosystems.
The MANA Token - Decentraland
Decentraland is a virtual reality metaverse gaming ecosystem on Ethereum. Using the native MANA token, players can purchase virtual land NFTs called LAND. Also, LAND owners can create unique, interactive virtual experiences and participate in virtual economies. Plus, players have verifiable ownership of all applications, avatar wearables, and experiences they create within the game.
The MANA token is the primary medium of exchange throughout the Decentraland game and is essential for in-game purchases. Furthermore, MANA is the top gaming token by market capitalization at the time of writing.
The AXS Token - Axie Infinity
Axie Infinity is a decentralized gaming universe on Ethereum where players can breed, collect, battle, and create kingdoms for collectible pets known as “Axies”. The player-owned economy enables players to own their resources and trade them with other players. Players can also compete in skill-based games and participate in quests to earn rewards. Furthermore, players can implement complex strategies to earn resources and unlock storylines.
The Axie Infinity Shards (AXS) token is the governance token of the gaming platform. Holders of the AXS token can vote on proposals to make changes to the parameters of the game. Plus, players can earn AXS token rewards by interacting with various gaming scenarios and user-generated content initiatives.
The SAND Token - The Sandbox
The Sandbox is another popular metaverse gaming platform on Ethereum. The community-driven crypto gaming platform enables creators to build virtual lands and monetize in-game items and experiences on the blockchain using the in-game marketplace. Players need the native SAND ERC-20 utility token to purchase items for use within the game. Also, the SAND token can be staked to earn a passive income and is essential for participating in platform governance.
The GALA Token - Gala Games
Gala Games is a blockchain gaming platform that aims to make blockchain invisible by incorporating it into exciting, immersive gaming experiences that anyone would want to play. Genres include role-playing games (RPGs), fantasy simulations, player vs player (PvP) battles, and more.
The GALA token is the native utility token of the Gala Games platform. It is used as a primary unit of account throughout the Gala Games ecosystem and is the financial incentive that rewards the decentralized network of nodes responsible for securing the network. Furthermore, the GALA token is essential for purchasing digital goods and in-game items.
The ENJ Token - Enjin
Enjin is an Ethereum-compatible software suite for creating and managing digital goods on the blockchain. The project aims to minimize friction for game developers while reducing fees and fraud for players and collectors of in-game assets. Every digital collectible created using Enjin requires the native ENJ token for purchase. Furthermore, blockchain game developers can take advantage of the Enjin software development kit (SDK) range.
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Smooth Love Potion (SLP) - Axie Infinity
In the battle and adventure modes of Axie Infinity, players can earn Smooth Love Potion (SLP) token rewards by participating in brawls and completing daily quests. SLP tokens enable players to breed new Axies.
Players can breed their first set of Axies at the cost of 100 SLP. However, this price increases with each breeding up to a maximum of 2,100 SLP to avoid hyperinflation within the Axie Infinity in-game marketplace. Moreover, SLP tokens are an essential component of the play-to-earn (P2E) gaming model. They enable players to participate in GameFi scenarios and earn a passive income with crypto.
The WAXP Token - Wax Blockchain
The Worldwide Asset eXchange™ (WAX) is one of the most widely used NFT blockchain ecosystems. It offers a highly convenient exchange for both virtual and physical collectible items. The platform boasts partnerships with big names from sports, gaming, and entertainment. This includes the Topps Major League Baseball collaboration, classic fighting game Street Fighter, and a string of top entertainers. Furthermore, WAX uses a unique type of NFT called vIRL® NFTs. These innovative tokens offer dynamic app integration, marketing tools, and more.
The WAX token (WAXP) is essential for on-chain governance and staking. Rather than paying transaction fees, players can stake the WAXP token. Not only does this reduce fees, but it also accrues staking rewards over time and increases the scarcity of the token. In addition, the WAXP token can be used for purchasing NFTs via the WAX NFT marketplace.
The UOS Token - Ultra
Ultra is a blockchain gaming development ecosystem where users can access a broad range of crypto games, media content, and decentralized applications (dApps) in one convenient location. The platform makes it easy for developers to implement advanced gaming features using a suite of development tools. Plus, Ultra opens up new opportunities to monetize digital goods and content.
The native Ultra token (UOS) enables creators and developers to earn a higher percentage of the revenue generated by their games. Also, the UOS token allows for much quicker payments than traditional methods. Also, users can earn UOS by participating in beta testing and other initiatives throughout the ecosystem.
The JEWEL Token - DeFi Kingdoms
DeFi Kingdoms is a crypto game on the Harmony ONE blockchain. It combines fantasy pixel art, a decentralized exchange (DEX), a liquidity pool, and a non-fungible token (NFT) marketplace. Players can earn the native JEWEL token by participating in quests, providing liquidity to the DEX, and staking. In addition, players can exchange rare NFT collectibles via the in-game marketplace. Plus, DeFi Kingdoms benefits from fast speeds and low transaction fees.
The ILV Token - Illuvium
Illuvium is a decentralized gaming protocol on Ethereum. Players can traverse a “vast and varied landscape” while hunting dangerous beasts to use in battle and trade via the in-game exchange.
Furthermore, the native ILV token enables players to participate in staking and liquidity mining incentives. The project aims to distribute the ILV token to the community via liquidity mining incentives to facilitate a decentralized governance model. Moreover, the ILV token will play a critical role in platform governance by enabling holders to vote on changes to the game.
Why Invest in Gaming Tokens?
If you’re an avid gamer or a crypto enthusiast, gaming tokens provide a gateway to an entirely new world of gaming economies and virtual experiences. Gaming tokens enable players to earn an income by competing in challenges and battles. Plus, some gaming tokens are essential for purchasing in-game items and collectibles.
Furthermore, many investors outside of the gaming space are looking toward the top gaming tokens by market capitalization as potential investment opportunities. Accordingly, many of the top gaming tokens are sitting comfortably within the top 100 cryptocurrencies.
Moreover, some of the top gaming tokens by market capitalization have seen incredible price action in recent months by providing access to virtual land ownership in the metaverse. Some of the biggest companies and brands sector-wide are jumping on the metaverse bandwagon. As such, metaverse and crypto gaming tokens could be a prominent feature in the blockchain narrative for years to come.
Top Gaming Tokens - Summary
Gaming tokens enable crypto gaming platforms to create virtual economies and offer verifiable ownership of in-game items. Players can use these tokens to buy, sell, and trade all kinds of rare and unique assets via in-game marketplaces and exchanges. Also, some of the top gaming tokens enable players to have a say in the direction of the game by voting on proposals to make changes to it. Plus, many top gaming tokens provide access to liquidity mining and staking rewards.
So, now that you’re familiar with the top gaming tokens by market capitalization, you should have a good insight into the most popular crypto gaming platforms. Furthermore, this article should give you an insight into the most widely-used and reputable crypto gaming platforms.
If you want to learn how to build your own non-fungible token (NFT) marketplace like the ones you see in top crypto games, check out the Ethereum dApp Programming course at Moralis Academy.
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