Non-fungible token (NFT) projects have been hit hard by the price drop in the cryptocurrency ecosystem and the current bearish conditions have spared few tokens from a price drop.
One project that is trying to get back on solid footing is Immutable X (IMX), an NFT-focused layer-2 (L2) scaling solution for the Ethereum (ETH) network, designed to deliver near-instantaneous trades and zero gas costs to store. to bid and trade.
Data from Coin-Crypto Markets Pro and Trading Display shows that the price of IMX is up 69.6% since the low of $1.09 on March 7, to reach a daily high of $1.86 on March 11.
IMX/USDT 4-hour chart. Source: TradingView
Three reasons for the turnaround in IMX are the completion of a $200 million Series C financing round, the launch of new projects on the platform and the overall continued interest in NFTs despite the recent price drop.
IMX raises $200 million in seed funding
The most impactful development to boost IMX in March was the successful completion of a Series C funding round in which the project raised $200 million to invest in blockchain gaming.
1/ Important news: we are happy to announce @immutable raised $200 million in Series C funding @ $2.5B fall.
We’re reinforcing our mission to make NFTs mainstream through high-performance blockchain games (and more).https://t.co/mZkrK2PnEj pic.twitter.com/69zbECxlIw
— Immutable | $IMX (@immutable) March 7, 2022
The fundraising round was led by Singaporean state-owned company Temasek and also included participation from Animoca Brands, Tencent, Arrington Capital and Princeville Capital.
IMX plans to use the money raised to develop its L2 scaling solution on Ethereum and scale up the Immutable Gaming Studio, which hosts popular games like Gods Unchained and Guild of Guardians.
After this most recent round of funding, the total valuation of the Immutable X protocol stands at $2.5 billion.
New games launched
The second factor that adds value to IMX is the addition of new projects to the protocol, which has helped to attract new users to the ecosystem.
Some of the recent additions include Vy Worlds and Habbo NFT, both of which have airdropped to early adopters as a way to attract more users.
One of the world’s oldest online gaming communities @Habbo will power @HabbaNFT‘s future L2 NFT furniture collection with @immutable X
Habbo users have easy access to gas-free and completely carbon neutral NFTs
+ HUGE scalability with Ethereum’s unparalleled security included. pic.twitter.com/6GxlXjjEHA
— Immutable | $IMX (@immutable) February 16, 2022
Offering gasless NFT transactions and a carbon neutral environment while still being able to operate on the Ethereum network is an attractive proposition for emerging projects and will likely continue to attract new projects for IMX in the future.
Related: Immutable X (IMX) Price Rises After GameStop Partnership and New Project Launches
The undying popularity of NFTs
A third factor driving the tailwind of IMX is the continued popularity of the NFT sector.
The cryptocurrency ecosystem as a whole has been bearish since the beginning of 2022, leading to falling token prices and diminished interest in big-ticket NFTs, but data from Dune Analytics shows that sales volume on OpenSea is still close to all time. -highs is located.
Monthly OpenSea Volume on Ethereum. Source: Dune Analytics
January and February 2022 saw the highest volumes ever traded on OpenSea, despite the decline in the broader market, suggesting that interest in and demand for NFTs remains strong.
VORTECS™ data from Coin-Crypto Markets Pro began detecting a bullish outlook for IMX on March 9, ahead of its recent price surge.
The VORTECS™ score, exclusive to Coin-Crypto, is an algorithmic comparison of historical and current market conditions, derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS™ Score (green) vs. IMX price. Source: Coin-Crypto Markets Pro
As can be seen in the chart above, the VORTECS™ score for IMX peaked in the green zone on March 9th, reaching a high of 81 around 7pm before the price rose 29% the following day.
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