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Cross-chain interoperability, new project launches and the popularity of NFT gaming are helping to drive the price of SOUL higher.
Nonfungible tokens (NFTs) and blockchain-based gaming projects saw a breakout in popularity over the course of 2021. This was due to their widespread appeal, which attracted the attention of crypto newbies and experienced hodlers alike. This trend helped to further initiate the mass adoption of blockchain technology and from the look of things, it's 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 reflect that it's about to make a run for a new all-time high.
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.
SOUL/USDT 1-day chart. Source: TradingView
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, including Ethereum (ETH), Binance Smart Chain (BSC), Phantasma (SOUL), Avalanche (AVAX), Polygon (MATIC) and NEO N3.
One of the main draws of using Phantasma over other chains is its dual token system where SOUL token holders can stake their tokens to earn Phantasma Energy (KCAL). These, in turn, can be used to pay for transaction fees. This essentially makes transactions free for SOUL holders.
Phantasma is also certified as a carbon-negative blockchain, which has helped to attract positive attention. This sets it apart from other networks like Ethereum, which has a notoriously higher carbon footprint since it utilizes 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
On top of the addition of interoperability with other networks, the Phantasma chain, itself, is capable of reaching high levels of throughput. This is due to the ability to host infinite sidechains while the network as a whole benefits from having native oracles built directly into the core of its design.
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 incentivize crypto users to become increasingly comfortable with transacting across multiple networks.
Related: Samsung announces NFT platform for smart TVs
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.
Interest in NFT searches over time. Source: Google Trends
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. The high throughput, low-cost capabilities of Phantasma make it an attractive option for gamers looking to maximize their earnings while minimizing transaction costs.
With the interest in gaming and NFTs showing no signs of disappearing in the near future, projects that focus on facilitating their growth and adoption could continue to see their values rise as NFTs become more mainstream.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.