Non-fungible tokens and blockchain-based gaming projects saw a rise in popularity over the course of 2021. This was due to its widespread appeal, which attracted the attention of crypto newbies and seasoned hodlers alike. This trend helped to further initiate mass adoption of blockchain technology and, from the point of view of things, it is likely to continue throughout 2022.
One project moving into 2022 is Phantasma (SOUL), a layer one blockchain protocol that specializes in building SmartNFT and decentralized gaming applications. Its prices reflect that it is about to reach a new all-time high.
Data of Cointelegraph Markets Pro Y TradingView shows that since hitting a low of $ 2.30 on Dec 30, SOUL's price has risen 61.73% to a daily high of $ 3.72 on Jan 3, as its trading volume of 24 hours increased from an average of $ 3 million to $ 12 million.
Three reasons for SOUL's price increase are the launch of several new protocols on the Phantasma network, the addition of cross-chain support for multiple networks, and the general rise in popularity of NFTs and blockchain-based games.
Launch of new projects in Phantasma
One of the biggest advances in the Phantasma ecosystem over the last two weeks has been the launch of several projects on the web. This includes the role-playing card game. Blood rune, the mobile game Ghost festival and the NFT GhostMarkets marketplace.
The GhostMarket NFT marketplace is currently conducting its initial decentralized exchange offering (IDO) at Flamingo Finance and will have its GM token available to trade on the six different networks that GhostMarket supports, but which includes Ethereum (ETH), Binance Smart Chain (BSC), Phantasma, Avalanche, Polygon, and NEO N3.
One of the main draws of using Phantasma on other chains is its dual token system where SOUL token holders can stake their tokens to win Phantasma Energy (KCAL). These, in turn, can be used to pay transaction fees. This basically makes transactions free for SOUL holders.
Phantasma is also certified as a negative carbon blockchain which has helped attract positive attention. This distinguishes it from other networks like Ethereum, which notoriously has a larger carbon footprint as it uses mining.
Interoperability between chains
A second reason for Phantasma's strength building has been the addition of cross-chain interoperability with multiple blockchain networks, including Ethereum, BSC, and NEO.
On the fifth day of Christmas # Ghosts brings you a Layer 1, interoperable four-string smart contract ecosystem with $ ETH, #BSC Y $ NEO for fungible tokens and soon for non-fungible tokens (#NFTs)$ SOUL $ BNB #smartNFTs #blockchaingaming #GameFi pic.twitter.com/vcpXmqO66r
- Ghost (@PhantasmaChain) December 29, 2021
In addition to interoperability with other networks, the Phantasma chain itself is capable of achieving high levels of performance. This is due to the ability to host infinite sidechains, while the network as a whole benefits from having native oracles built right into the core of its design.
Given that interoperability appears to be one of the top themes in the cryptocurrency ecosystem by 2022, projects that have already started to make it a focus of development are likely to outpace competition that doesn't. This will incentivize crypto users to become increasingly comfortable with transactions across multiple networks.
Related: Samsung announces NFT platform for smart TVs
NFT and gaming popularity
The third reason for Phantasma's build strength is the general popularity of gaming and NFT projects as blockchain adoption is on the rise.
According to data from Google Trends, interest in NFTs has risen since early 2021 and peaked in mid-December when Phantasma unveiled new projects and touted its low-cost capabilities.
In addition to the widespread increase in interest in NFTs, popular blockchain-based games like Axie Infinity have led to the emergence of money-making games across the crypto ecosystem. Phantasma's high-performance and low-cost capabilities make it an attractive option for gamers looking to maximize their profits and minimize transaction costs.
With interest in games and NFTs showing no signs of fading anytime soon, projects that focus on facilitating their growth and adoption could continue to see their values โโrise as NFTs become more common.
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 business move involves risk, you should do your own research when making a decision.
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