Non-fungible token (NFT) projects have been hard hit by the price decline across the cryptocurrency ecosystem and the current bearish conditions have spared few tokens from a price collapse.
One project that is attempting to get back on solid footing is Immutable X (IMX), an NFT-focused layer-2 (L2) scaling solution for the Ethereum (ETH) network designed to offer near-instant transactions and zero gas fees for minting and trading.
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Data from Cointelegraph Markets Pro and TradingView shows that the price of IMX has climbed 69.6% since hitting a low of $1.09 on March 7 to hit a daily high of $1.86 on March 11.
Three reasons for the reversal in IMX include the completion of a $200 million Series C funding round, the launch of new projects on the platform and the overall sustained interest in NFTs despite the recent decline in prices.
IMX raises $200 million in seed funding
The most impactful development to bring a boost to IMX in March was the successful completion of a Series C funding round that saw the project raise $200 million to invest in blockchain gaming.
The fundraising round was led by the Singaporean state-owned investment firm Temasek and also included participation from Animoca Brands, Tencent, Arrington Capital and Princeville Capital.
IMX intends to utilize the funds raised to develop out its L2 scaling solution on Ethereum and scale the Immutable Gaming Studio, which hosts popular games like Gods Unchained and Guild of Guardians.
Following this most recent funding round, the total valuation of the Immutable X protocol stands at $2.5 billion.
New games launch
The second factor bringing added value to IMX is the addition of new projects to the protocol which has helped to attract new users to the ecosystem.
Some of the recent additions include Vy Worlds and Habbo NFT, both of which have conducted airdrops to early adopters as a way to help attract more users.
Offering gasless NFT transactions and a carbon-neutral environment while still being able to operate on the Ethereum network is an attractive proposition to emerging projects and it will likely continue to attract new projects to IMX in the future.
Related: Immutable X (IMX) price soars after GameStop partnership and new project launches
The undying popularity of NFTs
A third factor putting the wind at the back of IMX is the ongoing popularity of the NFT sector.
The cryptocurrency ecosystem as a whole has been bearish since the start of 2022, leading to falling token prices and reduced interest in big-ticket NFTs, but data from Dune Analytics shows that the volume of sales on OpenSea is still near all time-highs.
January and February of 2022 saw the highest volumes ever traded on OpenSea despite the drawdown in the wider market, suggesting that interest and demand for NFTs remains elevated.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for IMX on March 9, prior to the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the chart above, the VORTECS™ Score for IMX spiked into the green zone on March 9 and hit a high of 81 around 19 hours before the price increased 29% over the next day.
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.
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