Immutable, a Layer-2 scaling solution specifically created for NFTs on Ethereum, has recently grabbed headlines. Now, it’s passed Ethereum in weekly NFT sales volume! This milestone, marked by a 21% increase, begs the question: what's fueling Immutable's rise in the competitive NFT landscape? If you’re looking for more innovative, Web3 ways to future-proof your organization, GreedyChain.com is your one-stop shop. We’re going in deep to bring you the best in actionable knowledge and intelligence.

The Immutable Advantage: A Gamer's Paradise

Many reasons explain Immutable’s increasing popularity, most notably its impressive adoption by the gaming community. Immutable has created a better and cheaper experience for NFT creators and collectors. Unlike Ethereum, it’s not plagued by high gas fees and slow transaction times.

Key Features of Immutable

  • True ownership of in-game assets through NFTs: Immutable empowers gamers with true ownership of in-game assets through NFTs, allowing them to trade, sell, and use their digital possessions across different platforms.
  • Instant distribution to multiple marketplaces: Every time an asset is listed with Immutable, it is instantly distributed to multiple marketplaces, increasing its visibility and potential for sale.
  • High efficiency and scalability: Immutable is over 600x more efficient than Ethereum L1, enabling real-time minting, transferring, and trading.
  • Ethereum-grade security: Immutable offers Ethereum-grade security with zero gas fees.
  • User-friendly APIs: Immutable provides simple APIs & SDKs for easy building and launching of NFT projects.

These features combine to create an ideal environment for dynamic game development. They pull more players in, catalyze development, adoption, and drive up sales volume. Immutable is powering this growth by doubling down on gaming and providing true ownership of in-game assets through NFTs. The platform hosts various gaming-related NFT collections that further demonstrate this pledge. Cost-effective and scalable, this platform has consistently exceeded Ethereum L1 performance by more than 600x. Specifically, it enables minting, transferring, and trading in real time, making it an attractive option for NFT creators and collectors. In addition, zero gas fees allow Immutable to be much more user-friendly and cost-effective for NFT transactions, the platform’s flagship offerings.

Guild of Guardians: A Catalyst for Growth

One game, in particular, has played a significant role in Immutable's recent success: Guild of Guardians. The mobile roleplaying game, which debuted May 15th, generated significant momentum. In the first 24-48 hours, it was doing about 30k installs a day. Since re-launching the game, it has grown to a 20x increase in daily active users from the regional test launch. It achieved an outstanding 4.8 out of 5 stars on the Apple App Store in Australia. In short order, it got a top 10 ranking in the US, Philippines, and Singapore. Almost 98% of installs converted into active game players, an indication of a smooth onboarding experience through Passport.

NFT Sales Surge

The pre-release success of Guild of Guardians has resulted in large-scale NFT sales. Immutable-based NFT collections, such as Guild of Guardians Heroes and Guild of Guardians Avatars, have recorded substantial trading sales volumes of $14 million and $5.8 million, respectively. The uptick in activity has massively increased Immutable’s total sales volume. As a result, it has recently even overtaken Ethereum in weekly sales of NFTs.

Potential Challenges: Active Wallets and Token Supply

Although Immutable’s recent success can’t be disputed, there are serious challenges to its long-term sustainability. Daily active users Over the last month, Immutable’s unique active wallets playing its games decreased by 17% — a loss of 200,000 — bringing the total down to a million. This significant drop in user engagement is risky for their growth strategy. A drop in active wallets can genuinely hurt the Immutable ecosystem. This sudden drop can lead to lost NFT trading volumes and overall decreased usage of the platform.

IMX Token Considerations

IMX, Immutable’s native token, is a key driver of the ecosystem. As of August 31st, 2022, the stakeable IMX token supply was 327,663,668. This is how the first cycle guarantees you a 5% annualized rewards rate. This holds true as long as at least 30% of the stakeable token supply is staked. Users must trade at least $10 USD per day in order to qualify for token rewards. Even if you only score 1,000 out of 10,000 points possible in a cycle, get excited—you still won that round! If there are 10,000 points earned by all traders that day, you will get 10% of the IMX tokens being rewarded.

Additionally, the tokenomics of IMX — featuring staking rewards and trading thresholds — create incentives for participation and engagement. The rising token supply might dilute its value over time if not carefully managed.

Sustainability

Immutable’s cutting-edge offerings and commitment to gaming have catapulted it to the pinnacle of the NFT landscape. So we must confront the drop in active wallets directly. Furthermore, well-timed and well-measured creation of the IMX token supply will be paramount to protecting its ongoing success and long-term viability. As the leader of Web3 gaming, Immutable has the opportunity to remain at the forefront by focusing on innovation. They will respond to the dynamically evolving needs of the market.