Nonfungible tokens and blockchain-based gaming projects saw a breakout in popularity over the course of 2021. Their widespread appeal attracted both crypto novices and seasoned hodlers. This trend helped to further initiate the mass adoption of blockchain technology and from the look of things, its likely to extend throughout 2022.
One project is making moves in 2022 is Phantasma (SOUL), a layer-one blockchain protocol that specializes in the creation of SmartNFTs and decentralized gaming applications. Its prices indicate that it is on the verge of a new record.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $2. 30 on Dec. 30, the price of SOUL has climbed 61. 73% to a daily high at $3. 72 on Jan. 3 as its 24-hour trading volume increased from an average of $3 million to $12 million.
Three reasons for the surging price of SOUL are the launch of several new protocols on the Phantasma network, the addition of cross-chain support for multiple networks, and the overall increase in popularity of NFTs and blockchain-based gaming.
New projects launch on Phantasma
One of the biggest developments to come out of the Phantasma ecosystem over the past couple of weeks has been the launch of several projects on the network. This includes the role-playing card game Blood Rune, the mobile game Ghost Festival and the NFT marketplace GhostMarkets.
The GhostMarket NFT marketplace is currently conducting its initial decentralized exchange offering (IDO) on Flamingo Finance and will have its GM token available to operate on the six different networks that GhostMarket supports, but including Ethereum (ETH), Binance Smart Chain (BSC), Phantasma, Avalanche, Polygon and NEO N3.
One advantage of Phantasma is the dual token system. SOUL token holders can use their tokens to earn Phantasma Energy. These tokens can then be used to pay transaction fees. Transactions are now free for SOUL holders.
Phantasma has also been certified as a carbon negative blockchain, which has attracted positive attention. This distinguishes it from other networks such as Ethereum which has a much higher carbon footprint because it uses mining.
A second reason for the building strength of Phantasma has been the addition of cross-chain interoperability with multiple blockchain networks including Ethereum, BSC and NEO.
On the 5th day of Christmas #Phantasma gives to you a Layer 1 smart contract ecosystem, quad-chain interoperable with $ETH, #BSC and $NEO for fungible tokens and soon for Non-Fungible Tokens(#NFTs)$SOUL $BNB #smartNFTs #blockchaingaming #GameFi pic.twitter.com/vcpXmqO66r
— Phantasma (@PhantasmaChain) December 29, 2021
The Phantasma network is capable of high throughput and interoperability. This is because the Phantasma chain can host infinite sidechains, while the entire network benefits from native oracles integrated directly into its core.
With interoperability looking to be one of the major themes in the cryptocurrency ecosystem for 2022, projects that have already started making it a focus of development are likely to outperform the competition that doesn’t. This will encourage crypto users to be more comfortable transacting across multiple networks.
NFT and gaming popularity
The third reason for the building strength of Phantasma is the overall popularity of gaming and NFT projects as blockchain adoption is on the rise.
According to data from Google Trends, interest in NFTs has been rising since early 2021 and hit a peak in the middle of December as Phantasma was introducing new projects and touting its low-cost capabilities.
On top of the generalized rise in interest in NFTs, popular blockchain-based games like Axie Infinity have led to the emergence of play-to-earn games across the crypto ecosystem. Phantasma’s low cost, high-throughput capabilities make it a popular choice for gamers who want to maximize their earnings and minimize transaction costs. Projects that are focused on NFTs and gaming will continue to enjoy a growing market as NFTs become more mainstream. With the popularity of NFTs and gaming showing no sign of slowing down, it is possible for projects that are focused on NFTs’ adoption and growth to continue seeing their value rise.
The views and opinions expressed in this article are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.