In the early stages of cryptocurrency, gambling was one of the more prominent use cases. Whether it was dice, online poker, or blackjack, every respectable currency had at least one of each option. Today, there is less interest in gambling coins, even though some projects still try to make a name for themselves.
The Current State of Gambling Coins
As the market leader among gambling coins, Decentral Games – or DG – has a market cap of $215.7 million. That is not too high, given how various currencies can surpass $5 billion with ease these days. However, despite the price of over $586 per DG, there is barely over $4 million in trading volume. However, the token has gained 24% this week, putting it on many people’s radars. Whether that momentum is sustainable remains subject to debate, as there is still much market volatility.
It is worth mentioning that Decentral Games’ DG represents roughly 40% of the total gambling coins market cap. The remainder is divided among FUNtoken _FUN – which holds a market cap of $211.3 million, and everything else. Only two outspoken projects exist in this industry segment today, which is rather surprising. However, it shows that tokens dedicated to gambling struggle to gain substantial traction.
Every other project in the gambling segment has a market cap of just over or under $50 million. One would expect these numbers to look very different, yet prominent gambling platforms have incorporated significant currencies like Bitcoin and Ethereum over the years. There is no real “need” for other gambling coins among those who like to gamble and wager. Competing with those two giants is tough for any crypto asset.
What is even more worrisome is how these gambling coins struggle for trading volume. Only three assets generate over $1 million in 24-hour volume, which is indicative of how people approach this industry today. It also confirms there isn’t much of a future for most of these projects unless something changes drastically. Enforcing that change will require something innovative and compelling, yet that may take years to materialize.
Weekly Performance Offer Speculative Hope
One remarkable trend is how some of these gambling coins can note strong market performance. Arena Token gained over 95% this week, despite it having nearly no trading volume and an unknown market capitalization. The same goes for Pyram Token, which went up by 48.4% with even less trading volume and no known market cap.
As there is no notable volume to speak of, it seems safe to assume there may be some wash trading and market manipulation going on. That is always unfortunate yet nearly impossible to avoid in this industry. With so many lower-cap coins and very little trading volume, things do not look impressive. Moreover, one has to wonder if that situation can change. Exchanges appear less keen on listing gambling coins these days for regulatory and other reasons.
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