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IMX Token Thrives as Immutable’s Web3 Gaming Strategy is Paying Off

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This week, Bitcoin dipped even further, going as low as $28,735 — a level last seen over a month ago on July 21st. At the time of writing, BTC/USD has been trading at $28,870.

These losses came amidst concern about the hack of the popular decentralized finance platform Curve Finance over the weekend, which has put millions in danger and a possible DeFi contagion.

Besides this, according to Nigel Green, the CEO, and founder of the deVere investment advisory group, summer typically ushers in reduced market activity, which in turn can create price inefficiencies and increased volatility.

Caution can also be seen in crypto asset investment products, which saw minor outflows of $21 million last week, with the majority (93%) from long-Bitcoin investment products, according to a report from asset manager CoinShares.

“This suggests investors have been taking profits in recent weeks, with the sentiment for the asset overall remaining supportive,” the report said.

As the world's largest cryptocurrency fell under the $30,000 support floor, altcoins took an even deeper drop, including Litecoin, ahead of its halving on August 2nd, which will cut the mining reward for each successfully minted block from 12.50 LTC to 6.25 LTC.

In the past 24 hours, the biggest losers have been COMP (10.3%), Aave (9.8%), APE (6.4%), OP (6.3%), SNX (6.3%), CRV (6.1%), PEPE (5.1%), and THETA (5%). With this, the total crypto market cap has fallen to $1.2 trillion.

Among these losers, a handful of coins still pulled in greens, including IMX.

IMX Price Rejoicing in Green

The 49th largest cryptocurrency with a market cap of $829 million, IMX's price is up 1.3% against USD, 3.1% against BTC, and 3.3% against ETH in the past 24 hours. While most cryptos tanked this past week, IMX still recorded 9% gains.

On Tuesday, the price went to $0.774 before giving up some of the gains. At the time of writing, IMX has been exchanging hands at $0.7657 while managing $21.9 mln in 24-hour trading volume, a decrease of 95.70% from a day ago.

For now, the token's price is currently around the resistance level, with solid support available around $0.67 to $0.70. Meanwhile, the weekly Relative Strength Index (RSI) has a reading of 52.5, indicating a relatively balanced market sentiment, suggesting that IMX is neither overbought nor oversold.

For the past month, the token has been trading above $0.675 but below $0.850, with its performance being positive at 3.2% during this period. IMX actually had a good start in 2023 as it went from $0.384 to $1.25 in mid-Feb, recording over a 225% jump in its value.

While the price dropped to about $0.81 in mid-March, only in a matter of a week, it surged as much as 92% to $1.55. And ever since then, the price has been on a downtrend falling to $0.579 in mid-June. However, after recovering over the past month, it is currently up over 32% from that low, and it has increased by 100% so far in 2023.

Despite this, IMX's price is still down 29% over the past year and has lost almost 92% of its value since hitting a peak of $9.52 in Nov. 2021. The lowest IMX price ever went was $0.378 on December 31st, 2022.

The native token of the blockchain Immutable X first started trading in late 2021, the same month it hit its all-time high (ATH). This was after an initial exchange offering (IEO) on the HTX exchange, two initial coin offerings (ICO), and private sales. IMX has a total fixed supply of 2 billion tokens, of which just over 1 billion are circulating in the market.

In the beginning, IMX tokens sold for 16 cents on HTX, and when in less than a month, it reached its ATH, IMX achieved a market cap of $1.75 billion.

Its token sales were a big success, with just under 20% of IMX sold during these events. At this time, during the ICO on CoinList, the project raised $12.5 million in under an hour. Meanwhile, its investor list includes the likes of Coinbase Ventures, Delphi Digital, ParaFi Capital, Animoca Brands, Fabric Ventures, Arrington XRP Capital, Alameda Research, Kinetic Capital, Continue Capital, Galaxy Interactive, and Bitkraft.

The tokens from the private sale are scheduled to be unlocked over 18 months following a one-year cliff, with the rest of the supply earmarked to jump-start the network, reward loyal users, and develop the protocol.

Click here to learn all about investing in Immutable X (IMX).

A Peak at Immutable X

Immutable X is a layer 2 scaling solution as well as a non-fungible token (NFT) trading platform. Founded in 2021, the platform was built by the tech firm StarkWare and Immutable, an Australian tech company founded by James and Robbie Ferguson.

The project has raised a total of $280 million, according to data from Crunchbase.

To operate as a layer 2 network tool for the Ethereum blockchain, it uses zero-knowledge proof technology to offer high speeds, low fees, and scalability, which is the ability to process more transactions without slowing down.

The way Immutable X works is it relies on “zero-knowledge rollups” (“ZK rollups”), an Ethereum-scaling tool that “rolls up” batches of transactions and then processes them on a separate blockchain called layer 2. Later, all these transactions are recorded on the Ethereum blockchain as a single transaction.

This technology allows the network to cut down on transaction fees and speed things up while allowing layer 2 to benefit from the security and network effects provided by the main Ethereum blockchain.

Through ZK rollups, Immutable X powers an NFT platform that doesn't charge its users gas fees. Some of the popular NFT games powered by this blockchain include Gods Unchained, Illuvium, and Nike (NKE)-owned sneaker NFT project, RTFKT. The marketplace charges a 2% commission on all NFT sales occurring on its platform.

IMX is at the core of the Immutable X ecosystem. As the utility token of the marketplace, the token is used to pay for transaction fees but doesn't require holding them, as the platform automatically converts 20% of the sale into IMX. Those who trade on Immutable X are also issued IMX tokens.

Besides being a utility token, IMX is also used for governance proposals that determine the platform's future, with each IMX token being equivalent to one vote. IMX tokens can also be staked with those who stake entitled to shares in the staking reward pool, where all the fees paid in IMX go.

What's Been Happening on Immutable (IMX)?

Now, we'll look at all the development going on with Immutable. For starters, the IMX token gained a listing on South Korea's leading cryptocurrency exchange Upbit just last week. The trading for IMX on Upbit against KRW and BTC started on July 28th, expanding its exposure.

This is a significant development that has been contributing to the token's surge in value. However, as of writing, an obscure decentralized crypto exchange BW.com is accounting for 49.67% of all IMX volume, according to CoinGecko. Established in 2017, BW.com is a Singapore-registered exchange recording $4.7 bln in volume, with ETH/BUSD being the most active trading pair on the platform.

Another factor bolstering IMX's value was the project's strategic partnership with Helika Analytics, enabling users to perform in-depth analysis using Helika's no-code tools.

The token could also have been the beneficiary of Twitter's re-branding. Most recently, crypto enthusiast and Twitter owner Elon Musk changed the name of his microblogging platform to X. As we have seen in crypto many times, those with any resemblance to hot news tend to end up pumping. This could be why the IMX token has been holding its price well during the current times of uncertainty as well as the cooling down of NFT mania this year.

IMX rose to prominence as global interest in NFTs gained traction this past couple of years but struggled as demand for NFTs dwindled. On-chain metrics also reveal that IMX seems to be struggling to find new demand.

The annualized NFT volume on Immutable X has fallen 11.64% to $270.14 million, as per Token Terminal. As a result, total fees paid by users in the past 30 days have dropped by 10.60% to $444.06k, while annualized fees are down by 11.64% at $5.40 mln.

Immutable X Tweet

Interestingly, the number of code commits to the projects' public GitHub repository has slid by 16.5% to 76, while the number of core developers (distinct users that made more than one commit) increased by almost 26% during this period to 10.53.

While the NFT side of Immutable has taken a dip, with the NFT trend seeing a lull, development on the platform is still flourishing, as noted by the project in a tweet that read, “Within just 6 months, 10,000+ game devs chose to build with Immutable.”

The project has actually been focusing on blockchain gaming. With its zkEVM, Immutable has been enabling developers to build the ultimate sandbox game with trustless gameplay mechanics, secure asset interaction at a low cost, ‘forever utility” for assets, unlike traditional in-game items where one can lose if the game shuts down, and seamless end-to-end experiences.

So, with Immutable Passport for smooth onboarding, Immutable Checkout for seamless purchases, and SDKs, APIs & more dev tools at fingertips, the Immutable platform has been offering seamless end-to-end experiences for game developers.

In June, Immutable also launched a $500 million venture fund for Web3 games, while gaming engine Unity expanded support for Immutable X in its developer toolkit a couple of months back.

When looking at the projects' collaborations, back in March this year, the Web3 gaming developer platform Immutable formed another big strategic partnership with blockchain protocol Polygon Labs to accelerate the development of Web3 gaming.

Immutable - Polygon Partnership

Polygon, which has scored an impressive list of partnerships, including Starbucks, Nike, and Reddit, also partnered with Square Enix, the company behind the Final Fantasy video games, to develop an NFT project. It then launched a business unit last month specifically to advance Web3 gaming.

Now, this partnership allows Immutable to power its platform products with Polygon's best-in-class zkEVM technology to simplify onboarding not just developers but also game studios in Web3. The alliance, as noted by the press release, “accelerates time-to-market and gives them access to an ecosystem that will be one of the largest and most liquid for end users.”

By working with the zero-knowledge technology, the idea is to build “an Ethereum-centric gaming ecosystem that is poised to take Web3 mainstream and bring digital ownership to millions of people around the world,” said Immutable's Robbie. He also noted how billions of dollars of skins in games are sold each year, but players receive no rights to them, and this is exactly what they're changing, giving players control and ownership.

Earlier this year, Immutable also partnered with GameStop (NYSE: GME) to establish a $100 million NFT fund in IMX tokens for game developers that use the platform. Besides GameStop, Immutable has partnered with DC Comics and Marvel as well to build out over 140 new titles.

Closing Thoughts

Just last week, an announcement was made that a period of ‘exponential growth' has officially begun. This growth surge has been observed since March, when Immutable zkEVM was introduced as the new hub for gaming. Since then, the pipeline of games has seen a tenfold increase, with an estimated future volume now exceeding $2.5 billion.

“This is just the beginning,” added Immutable, which believes gaming is how the mainstream will break into web3.

So, as we can see, the company is constantly building in an environment where prices are subdued, and retail has left. This focus on the development part in the currently boring market speaks well for the project as it could help the Immutable platform, as well as the IMX token attract users when the bull market begins anew in the future.

Click here to learn all about buying Immutable X (IMX).

Gaurav started trading cryptocurrencies in 2017 and has fallen in love with the crypto space ever since. His interest in everything crypto turned him into a writer specializing in cryptocurrencies and blockchain. Soon he found himself working with crypto companies and media outlets. He is also a big-time Batman fan.