Key Takeaways
- Reports note that the value of the Gunzilla Games’ GUN token drops after the launch of its Avalanche-based GUNZ Network.
- The GUN token that witnessed a rapid rise is now down over 30%.
- Although considered a typical scenario, with certain unanswered questions, the GUNZ launch has been creating concerns in the market.
The GUN token of the Gunzilla Games, popular for its “Off The Grid” game, has launched the mainnet rollout of the Avalanche L1-based GUNZ gaming network. Although the token experienced a rapid surge in prices soon after the launch, the market witnessed a steep dip in prices in the following hours. While the market cap of the GUNZ token reached $68M on 31 March, the day of the mainnet rollout launch, the current price has dipped significantly to $0.08195, marking the market cap of $48 M.
The Avalanche L1 Launch And GUNZ Token’s Performance
The current market analysis and expert opinion suggest that Off The Grid’s Avalanche L1-based mainnet rollout has negatively impacted the GUN token. Although the token’s price peaked in early Monday, the next few hours witnessed a steep decline. The current market analysis suggests that the token continues to fall in value even before the in-game mainnet integration.
According to expert opinion, this steep dip in prices is expected. The crypto enthusiasts note that it is a typical phenomenon, as most newly launched tokens reach a peak price within hours of launch and then lose value. Commonly, this scenario is caused when more users buy the token with its sudden price surge and then trade it in the market.
A market analysis of the GUN token suggests that the token is currently traded at $0.08195 with a 24-hour trading volume of $483,691,744. The current market cap of the GUNZ token has also dipped to $48 M. However, the token was traded at $0.115 earlier on Monday. So, even though the price of the token increased 2.0% in the last hour, the token experienced a 19.8% dip compared to the launch price.
Although the sudden surge and following dip in prices is a common scenario for new tokens, the latest launch has left some unanswered questions, creating concerns in the market. Even though the GUNZ network’s mainnet has been launched and the token has been actively traded in the market, the Off The Grid game has not made a transition from testnet to mainnet on PC, PlayStation 5, and Xbox.
At present, the GUN token is not used as a proper crypto token, but as an in-game currency. However, with the update of the game, the token can be used as a proper crypto token. Moreover, this shift will also unlock its ability to trade in-game items as NFTs (Non-fungible tokens). However, the ‘Gunzilla Games’ officials have not yet responded to queries. As for now, no details of the timeline for Off the Grid’s mainnet launch have been released.
Gunzilla Games’ Debut In Avalanche-Based Layer 1
According to reports, the Avalanche-based Layer 1 launch of the Gunzilla Games marks its debut in the field. The firm regarded this as a great initiative with significant changes. In the launch announcement, the Gunzilla Games CEO, Vlad Korolov, said that the firm’s partnership with Avalanche allows them to leverage its scalable and secure blockchain infrastructure and also offer a seamless, low-latency gaming experience for its users. However, the market conditions after the token launch do not seem to favor the firm. Although the token is being traded on Binance, with unanswered questions and a dip in prices, concerns and confusion loom over the GUN token.