Axie Infinity and The Sandbox lead drop in metaverse tokens as altcoins follow bitcoin lower | Currency News | Financial and Business News

Axie Infinity Media Kit

Bitcoin is declining, and it is taking metaverse tokens with it.

On Thursday, with the world’s largest cryptocurrency down 9%, metaverse tokens Axie Infinity, Sandbox and Enjin Coin also fell.

Axie Infinity, the token behind the game play of the same name and the largest metaverse coin by market capitalization, is down 16.8% to $78.30 in the past 24 hours, according to CoinGecko data.

The data showed that Sandbox, the second largest metaverse coin, fell 6.6% to $5.20 in the last day, while the main gaming coin Enjin fell 7.5% to $2.53. Decentraland, the third largest token, avoided defeat and rose a bit.

The decline in cryptocurrencies began on Wednesday after the US Federal Reserve said it may begin to tighten monetary policy faster than previously expected as it grapples with inflation hitting an almost 40-year high.

Major cryptocurrencies such as Ethereum, binance and solana also fell as risky assets were hit by Fed hawks.

While Bitcoin reached an all-time high of $69,000 in 2021, its percentage gain was negligible compared to the tokens. Previous data from Macro Hive showed that five coins – Axie Infinity, Decentraland, Sandbox, Enjin Coin and GALA – surged 37,000% during November last year, while Bitcoin doubled in price.

People flocked to crypto games like Axie Infinity as a way to make money in virtual worlds. Tokens used in such games got a boost when Facebook’s parent company rebranded it to Meta Platforms, a reference to its push into a future of the internet dubbed both the metaverse and Web3 – a futuristic virtual world where people can play, shop, work and interact. .