Why Gala (GALA) exceeds 34,200% this year

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There is an investor frenzy around blockchain gaming.

Top coins like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA) and Solana (SOL) have seen impressive price movements this year. But it’s the metaverse and gaming tokens that have stolen the show in recent weeks.

Nothing more than Gala Games (GALA), which has risen 34,200% since Jan. 1, according to data from CoinMarketCap. Gala has continued to grow over the past two months, despite a general decline in crypto prices. It has gained 400% since early November, placing it in the top 50 cryptocurrencies by market cap.

What is behind Gala’s price growth?

Gala is a blockchain gaming platform that uses the gaming model to win popularized by Axie Infinity (AXS). He says his mission is to make blockchain games that people want to play, and currently has a playable game called Town Star on his platform. Several more are in development.

Here are some of the reasons for its incredible value for money:

1. Blockchain gaming is booming

There are several reasons for the growth of blockchain gaming. One is the money-making game model that rewards players for putting time and effort into the game. Previously, players could spend hours earning points or upgrades in a game that then became worthless if they were stopped or if they stopped playing. Now, in-game points and upgrades have monetary value. Tokens earned in the game can be exchanged on cryptocurrency exchanges for (traditional) fiat money like dollars.

A second reason is the rise of attention for metaverse and all that pertains to it. And a third is that several game makers have escaped Ethereum gas fees by switching to other platforms, making gaming and development more affordable.

2. Launch of Town Star game nodes

Town Star is a win-win game in which users develop a city for farming competitively. It has over 600 million players and is Gala’s flagship game. In November, Gala announced that players can purchase licenses to run Town Star nodes, which essentially allows them to earn additional rewards for powering a portion of the game. Gala plans to introduce a new Town Star-specific TOWN token. .

3. It was listed on Coinbase

The popular cryptocurrency exchange added GALA to its list of available cryptos in mid-November. Coinbase is one of the largest crypto exchanges in the United States, and the price of Gala increased significantly after listing.

Should we buy?

Gala Games is riding the wave of gaming to win and has tapped into some important trends. He wants to create a fun platform, giving players control and redefining blockchain gaming.

Not only do Gala players own the rewards and items they earn, but the platform is also community driven. Players have a say in which games are developed and which direction development takes. Its founders are well-known figures in gaming and crypto, and the company already has some interesting partnerships.

However, caution is always in order jumping on the latest trend or popular crypto, especially with a coin that has already risen over 34,200%. You have to ask yourself how realistically it can go up and how far the price has been driven by speculation.

Blockchain gaming could continue to develop in the years to come, but we just don’t know how it will evolve. It’s such a new space that it’s hard to predict how big it will be, what shape it will take, and what games will be successful. And there are many crypto games out there. I counted over 30 in the top 500 cryptos by market cap, with many small games scrambling for a position lower in the table.

As with any investment, it’s important to do your own research and invest only the money you can afford to lose. Evaluate if you think the price may continue to rise. Make sure you understand the competition and ideally play the game you plan to invest your money in. Above all, don’t buy GALA because you are afraid you will miss something or because you are hoping it will produce more. short-term gains.

At the end of the line

Right now, there is an investor frenzy around gaming and metaverse tokens. People are speculating that this is the next big thing and are buying in the hope that these coins will blow up. The problem is, gambling is a competitive and volatile market, like fashion or music. Even industry insiders struggle to choose the next big thing.

Gala Games may be at the top of the crypto performance charts right now, but the price seems inflated and investors should think carefully before hitting the bandwagon.

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