Cryptocurrency has had a rough time lately.
The elusive digital currency used by investors, gamers, and metaverse early-adopters to purchase NFTs (non-fungible tokens), avatar skins in games like Roblox, and virtual collectible goods has seen a recent downturn from record highs. But while the metaverse’s main form of payment and conducting transactions virtually has seen a vast fluctuation in value, many companies are still moving full steam ahead on their plans to plant their stake in the virtual landscape.
Bitcoin, the flagship crypto token, made headlines when its price dropped below $20,000 last month, a value the digital currency hasn’t seen since December 2020. This is far lower than its peak in November, when bitcoin prices neared $65,000.
The same story could also be told for the popular metaverse currency ethereum, which can be used in decentralized web3 worlds like Decentraland and The Sandbox to buy digital and phygital products. Its value fell below $900 last month, its lowest level since January 2021, and it is down 66.7% so far this year from its high of nearly $5,000 in January.
While the value of both coins change by the minute, bitcoin did see a slight bump to $21,780 on Friday. It is currently at $20,507 at the time of this report. Ethereum is currently valued at 1,142.63, and has seen a decrease 3.7% over the last five days.
According to many experts, the price of both currencies has been extremely volatile over the last few months due to a broader market retreat from risky assets by spooked investors. Overall values in the crypto market saw a sharp drop in June after the Federal Reserve raised interest rates as it aimed to fight soaring inflation levels.
“The downturn in crypto prices is a confluence of many factors: lack of liquidity, inflation, raising interest rates and the downturn of all financial markets more generally,” said Brian Trunzo, metaverse lead at web3 developer Polygon Studios….
