The world of nonfungible tokens and blockchain gaming has seen immense development and progress in the direction of mainstream adoption in 2021. Lately, the motion picked up steam as an array of celebrities and web influencers jumped on the hype prepare by buying premium digital collectibles. 

One undertaking that has shortly risen in worth over the previous two months as particulars about its ongoing growth trickle to the general public is Illuvium (ILV), an open-world fantasy battle sport constructed on the Ethereum (ETH) blockchain.

ILV/USD 1-day chart. Supply: CoinGecko

Knowledge from CoinGecko reveals that after hitting a low of $29.32 on June 22, the value of ILV skyrocketed 1,765% to put up a brand new all-time excessive at $545.26 on Aug. 13.

Three causes for the super value development seen in ILV embrace the introduction of multi-asset staking options on the ILV protocol, the regular launch of teaser clips and NFTs that present a glimpse into how the gameplay will look and the overall energy of the NFT sector which has been gaining momentum since July.

Multi-asset staking alternatives improve token demand

Decentralized finance and its potential to supply customers and token holders a yield on their funding has been one most profitable tendencies within the crypto sector.

In an effort to seize a few of this momentum, in addition to enhance the tokenenomics of the ILV token, the crew at Illuvum introduced staking capabilities for ILV on June 30, and later they expanded its capabilities to incorporate different in style initiatives like Axie Infinity (AXS) and Synthetix (SNX).

On the time of writing, the flash swimming pools for staking AXS and SNX are bought out however ILV token holders can earn a 39.77% yield from versatile staking that may be withdrawn at any time, or 79.53% for these keen to lock their tokens on the protocol for 52 weeks.

Customers who present liquidity for the undertaking on SushiSwap can earn a yield that ranges from 283% to 566% relying on the period of time locked.

Product teasers excite the neighborhood

A second cause for the elevated consideration and pleasure Illuvium has acquired over the previous month has been the regular launch of recent undertaking particulars and character graphics which have given neighborhood members an thought of what the gameplay will appear to be.

As a part of its outreach efforts, the crew has additionally designed customized characters for various influencers like Chico Crypto, Satoshi Stacker and Clix.

This technique of specialised NFTs for influencers helped drive up curiosity within the undertaking because the influencers promoted Illuvium to their communities and gave them a chance to win one of many customized NFTs.

Associated: Corporate brands target NFTs, and adoption continues to skyrocket

NFT and blockchain gaming sector energy

A 3rd cause for the expansion seen in Illuvium has been the general development within the wider NFT and blockchain-based gaming sectors, which have been the most effective performers over the previous two month

A few of the breakout stars of the summer time embrace Axie Infinity, a blockchain-based buying and selling and battling sport the place some gamers earn sufficient cash to pay their month-to-month residing bills, and Audius, a decentralized music-sharing and streaming protocol that allows direct transactions between listeners and creators by changing songs into NFTs.

Proof of the skyrocketing demand for NFTs will be discovered within the every day buying and selling quantity on OpenSea, the most well-liked market for NFTs, which noticed a file $3 billion in gross sales quantity in the course of the month of August. 

So as to add somewhat perspective, as of Aug. 2 the whole year-to-date gathered quantity on OpenSea was $1.02 billion, which means that the amount seen in the course of the month of August was practically 3 times increased than the whole quantity traded between January 1 and August 2 of 2021. 

A phrase of warning is warranted at these occasions, nevertheless, as a result of the NFT sector has been identified to reverse course on the drop of a hat and ship token values plunging as merchants race for the exits.

Latest examples of this embrace Alien Worlds (TLM) and MyNeighborAlice (ALICE), which each skilled vital value will increase forward of their full product launches, solely to have their values collapse by greater than 90% as soon as launched.

If the Illuvium protocol can keep away from these pitfalls and make good on its promise to change into the primary AAA-rated sport on the Ethereum blockchain, ILV has the potential to see additional value appreciation because the blockchain-gaming trade goes mainstream.

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Each funding and buying and selling transfer includes danger, it’s best to conduct your personal analysis when making a call.