WAX ($WAXP) has seen a tremendous surge in popularity in the last month, rallying nearly 200% in a month. Many people — us included — expected the price to catch up with its prevalence in the industry sooner or later. WAX is the most used blockchain by a large margin and continuing to grow, Atomic Hub is moving staggering amounts of WAX around, and they have some of the most active games in blockchain gaming. At the time of writing this, WAX has 3 of the top 10 blockchain games based on users and 7 in the top 25.
The issue is, WAX has had this impressive portfolio of statistics for a while and the price had stayed between $0.10 and $0.30 for most of the year, and as low as just $0.02 at the start of 2021. A brief rally in the summer had people wondering if WAX’s potential was being noticed by the wider market, but it receded most of the way back to its resting price by September. In the last 30 days, however, WAX’s global average high grazed the holy grail of $1 with $0.99.
Many of us “predicted” this $1 by the end of 2021, but Cointelegraph’s VORTECS Score predicated the spike.
What Is the VORTECS Score?
The VORTECS Score is an algorithm developed and trademarked by Cointelegraph that assesses historical and current market conditions on various metrics and then compares the results. These metrics include “market sentiment, trading volume, recent price movements, and Twitter activity.” With the historic and current data points compared, a score is assigned between 0 and 100, with the higher scores representing a stronger likelihood of it being a better investment.
The live testing report of VORTECS found that holding tokens with a score above 80, buying any that venture into the 80s, and selling tokens that fall below 60 was a strategy that could comfortably outperform the crypto market. However, tokens that entered the “green zone”, which is below 80, were worth some attention. WAX was one of these.
“In live testing, the VORTECS™ Score outperformed the crypto market by up to 23.8% using a standard buy-at-80 and hold for 7 days strategy!”
VORTECS Report for 18th-25th February 2021
VORTECS Becomes Bullish on WAX
On the 2nd November 2021, WAX’s VORTECS Score indicated the potential for a rally while it sat at $0.47, which WAX then went on to double. Since that date, the score has remained around the 60 mark. The question is: What did VORTECS see?
This is difficult to answer with any crypto, but it is a token that is heavily connected with blockchain gaming and one that we follow closely, and its uptick isn’t isolated. Although it is early days, there appears to be something of a decoupling of gaming tokens with the rest of the crypto market. Where Bitcoin usually sets the pace, we have seen in the last week or two that many tokens related to the metaverse and blockchain gaming rose even as BTC fell. In the aforementioned Cointelegraph article, it was highlighted that $SAND (The Sandbox), $MANA (Decentraland), $GALA (Gala Games), and $WAXP (WAX Protocol) all saw considerable gains. In fact, all of them are now in the top 100.
This isn’t an exhaustive list by any means. For example, Enjin Coin ($ENJ) has seen a not-insignificant rally near to its all-time high in the last 7 days. Similarly, Immutable X ($IMX) — a zk-rollup for NFTs on Ethereum and centered around gaming — has risen by over 40% in the last 7 days.
Final Thoughts
It’s a little too early to say whether there is a true disconnect between blockchain gaming tokens and the rest of crypto, but it has certainly been a blockbuster month for the former. The stand-out success could be given to GALA as they went up over 325% in the last 7 days, but what’s more interesting to me is WAX and VORTECS’ detection of it. WAX appears to be snowballing with the rate of impressive announcements increasing by the day and rumblings of mouthwatering rumors rife.
Has VORTECS detected the wider market finally taking notice of WAX’s stellar CV?
Lead image a composite made in part with an image by Chris Li via Unsplash
