Avalanche gets tapped by a major gaming firm, will it see more utility
The traditional video game market and revenue were valued at billions of dollars, and further billions were predicted to be added, according to Statista’s data. As of February, the GameFi market cap reportedly exceeded $55 billion.
A prominent gaming company recently chose Avalanche as its network, according to a tweet from the page. Ava Labs and the Japanese gaming and media company GREE recently partnered to introduce the first Web3 game on the Avalanche blockchain for GREE’s subsidiary, BLRD.
Here’s AMBCrypto’s Price Prediction for Avalanche (AVAX) for 2022-2023
Japan’s GREE is a leading gaming company with over a decade of experience developing compelling Web2 games. The company had collaborated on many well-known titles, such as the Naruto games and several mobile adaptations of Final Fantasy.
Its subsidiary, BLRD, has published mobile games that have amassed millions of downloads through its collaboration with major video game publishers including Square Enix, Sega, Konami, and Bandai Namco.
BLRD leveraged the Avalanche blockchain to smooth its entry into and development within the blockchain gaming industry. The technical, promotional, and commercial assistance provided by Ava Labs would also be important in accelerating BLRD’s expansion into the blockchain gaming industry.
Because of this collaboration, GREE was now responsible for maintaining over a dozen Avalanche validators as part of its larger strategy to take part in the Avalanche main network and gaming Subnets. Also, GREE now holds the Avalanche token (AVAX).
This is a significant step for Avalanche as it showed that the network is being used by institutions and that its native coin, AVAX, was being used as well.
What are the metrics saying?
According to DefiLlama, the Total Value Locked (TVL) on the Avalanche chain was above $1.3 billion as of the time of this writing. The chart showed that the TVL had experienced a fall and that it had also been largely flat in recent years. This showed that the chain’s TVL had not received as many additions thus far.
There were currently fewer operations on the chain, according to a glance at the chain’s development activity metric on Santiment.
The measure, which was approximately 16.67, showed activity, albeit not much of it. Once significant activity related to the game’s production begins, this may shortly rise.
A look at the 12-hour timeframe
AVAX was trading at roughly $17, at the time of this writing. An examination of the price movement of AVAX on a 12-hour time frame chart revealed that it had been in a modest decline.
The yellow line (50 MA), which represents the short Moving Average, can also be seen providing support for the price movement. The 50 MA had served as resistance up to the minor uptick.
The announcement by GREE and Avalanche shows that established gaming companies are interested in blockchain technology and blockchain gaming.
The utility of the Avalanche network and its token AVAX have increased as a result of GREE’s anticipated deployment on that platform. For owners of AVAX, this might be a positive development from an economic and utility perspective.