Thursday, May 19, 2022
HomeNFT NewsImmutable X (IMX), gains 50% after the close of a $200M crowdfunding...

Immutable X (IMX), gains 50% after the close of a $200M crowdfunding round

Nonfungible token(NFT) projects have been severely affected by the decline in cryptocurrency prices and the current bearish market conditions have spared very few tokens from a collapse.

One project trying to get back on solid feet is Immutable X. This NFT-focused layer-2 scaling solution is for Ethereum networks and offers near-instant transactions as well as zero gas fees for trading and minting.

Data from Cointelegraph Markets Pro and TradingView shows that the price of IMX has climbed 69.6% since hitting a low of $1. 09 on March 7 to hit a daily high of $1. 86 on March 11.

IMX/USDT 4-hour chart. Source: TradingView

Three reasons for the reversal in IMX include the completion of a $200 million Series C funding round, the launch of new projects on the platform and the overall sustained interest in NFTs despite the recent decline in prices.

IMX raises $200 million in seed funding

The most impactful development to bring a boost to IMX in March was the successful completion of a Series C funding round that saw the project raise $200 million to invest in blockchain gaming.

— Immutable | $IMX (@Immutable) March 7, 2022

The fundraising round was led Temasek, a Singaporean state-owned investment company. It also included participation by Animoca Brands and Tencent as well as Arrington Capital, Princeville Capital, and Tencent.

IMX plans to use the funds to scale its Immutable Gaming Studio and develop an L2 scaling solution for Ethereum.

The Immutable X protocol’s total value now stands at $2.5 Billion.

New games launch

The second factor bringing added value to IMX is the addition of new projects to the protocol which has helped to attract new users to the ecosystem. Recent additions include Vy Worlds, Habbo NFT and Habbo NFT. These two companies have done airdrops to encourage more users to join the ecosystem.

One of the world’s oldest online gaming communities @Habbo will be powering @HabboNFT‘s future L2 NFT furniture collection w/ @Immutable X

Habbo users will easily access gas-free & fully carbon-neutral NFTs

+ MASSIVE scalability w/ Ethereum’s unparalleled security included. pic.twitter.com/6GxlXjjEHA

— Immutable | $IMX (@Immutable) February 16, 2022

Emerging projects will find it attractive to offer gasless NFT transactions, a carbon-neutral environment and the ability to use Ethereum’s network. It is expected to continue to attract new projects into IMX.

Related: Immutable X (IMX) price soars after GameStop partnership and new project launches

The undying popularity of NFTs

A third factor putting the wind at the back of IMX is the ongoing popularity of the NFT sector.

The cryptocurrency ecosystem as a whole has been bearish since the start of 2022, leading to falling token prices and reduced interest in big-ticket NFTs. Dune Analytics data shows that OpenSea’s volume is still at its highest point.

OpenSea monthly volume on Ethereum. Source: Dune Analytics

January and February 2022 saw the highest volumes ever traded on OpenSea despite the drawback in the wider market, suggesting that interest and demand for NFTs remains elevated.

VORTECS ™ data from Cointelegraph MarketsPro started to detect a bullish outlook on IMX in March 9, prior to the recent price increase. The VORTECS(tm), exclusive to Cointelegraph is an algorithmic comparison between historical and current market conditions. It uses a combination data points, including trading volume, market sentiment and recent price movements, and tweet activity.

VORTECS(tm) Score (green) vs. IMX price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS(tm) Score for IMX spiked into the green zone on March 9 and hit a high of 81 around 19 hours before the price increased 29% over the next day. The views and opinions expressed in this article are those of the author only and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.

Read More

Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.

Most Popular