Nonfungible tokens (NFTs) continue to be one of the hottest sectors of the cryptocurrency market in 2022 despite the overall multi-month weakness seen in Bitcoin (BTC) and other large-cap crypto assets.
One project that has benefited from the persistent bullishness in the NFT space is ImmutableX (IMX), a layer-2 scaling solution for NFTs on the Ethereum network designed to offer near-instant transactions and zero gas fees for minting and trading
Data from TradingView shows that after hitting a low of $1.99 on Jan. 24, the price of IMX gained 116% to hit a daily high of $4.29 as the 24-hour trading volume surged 505% to $333.5 million.
Three reasons for the price turnaround in IMX include the announcement of a new partnership with GameStop, the listing of the IMX token on Binance and the continued strength of the NFT space as a whole.
Immutable partners with GameStop
The biggest boost in momentum for IMX came with the Feb. 3 announcement that the protocol has partnered with GameStop to launch an NFT marketplace later in the year.
As part of the collaboration, a $100 million fund was created that is designed to provide grants to game developers and studios interested in building on ImmutableX and the NFT marketplace.
GameStop indicated that it selected ImmutableX for this collaboration due to the faster and more affordable nature of the network, which is also carbon-neutral and offers nearly limitless transactions.
ImmutalbeX utilizes StarkWare’s StarkEx zero-knowledge proof technology to achieve scalability on Ethereum, and any carbon footprint that is created by the network is offset through agreements with the certified climate-conscious provider’s Trace and Cool Effect.
Did the Binance listing provide a delayed boost?
A second factor that has helped boost the project was the Jan. 10 listing of the IMX token on Binance, the top cryptocurrency exchange by volume.
IMX saw a slight bump up in its price following the listing, before being dragged down with the wider market as the price of Bitcoin dropped to a low near $33,500 on Jan. 24.
IMX is now available on six of the top seven cryptocurrency exchanges by volume, including Coinbase and FTX, giving the token widespread access and ample trading liquidity.
Project launches and the growing popularity of NFTs
A third factor propelling IMX higher has been the steady addition of new projects and partnerships launching on the ImmutableX NFT marketplace and the overall popularity of the NFT sector.
Notable developments include the listing of Gods Unchained NFTs on ImmutableX, the launch of support for the KolectiveGG NFT marketplace and the launches of Cyber Galz, VeeFriends, Fantasy Labs, Battle Star NFT and Highrise, and new partnerships with Stardust and SHOYU_NFT.
These all come as the NFT space has continued to see large amounts of activity despite the wider market weakness as evidenced by data from Dune Analytics.