Immutable X Token Faces Weekly Loss Despite Ecosystem Growth

The Immutable X token is experiencing its first weekly loss in four weeks despite the strong performance of its ecosystem.

Immutable X Token Performance

On October 4, Immutable X (IMX) retreated to $1.4655, marking its lowest level since September 9 and showing a 22.4% decline from its highest level this month.

Passport Users Surge to 3 Million

In a recent statement, Immutable X developers highlighted the ecosystem’s growth, noting that the number of sign-ups to Immutable Passport has exceeded 3 million. This is a significant increase from less than 300,000 sign-ups in January.

The surge in users is largely driven by the success of three titles: RavenQuest, which has attracted over 200,000 monthly active users, along with SpaceNation and Immortal Rising 2, both of which are gaining traction.

Network Growth Confirmed

A recent report revealed that Immutable X’s network is expanding. Daily active addresses surged by 91,900% in the second quarter, reaching 282,000, primarily due to the launch of the Main Quest rewards program.

Additionally, the number of NFT buyers on Immutable X rose by 56% quarter-over-quarter (QoQ), while sellers increased by 18%.

NFT Sales and User Activity Decline

However, data indicates that NFT sales and user activity have decreased over the past 30 days. Sales dropped by 14.6% to over $14.5 million, while the number of buyers and sellers fell by over 82%.

Immutable X’s Position in the Market

Immutable X remains one of the largest layer-2 networks in the crypto industry, with a focus on the gaming and NFT sectors. Unlike other layer-2 blockchains such as Polygon and Arbitrum, Immutable X has carved out a niche in these industries.

Despite its strengths, Immutable X faces significant competition from the TON Blockchain, which has gained prominence due to the growth of the tap-to-earn industry. Other major competitors include Gala Games and Ronin.

Technical Analysis: IMX Finds Support

On September 23, the IMX token encountered substantial resistance at $1.9527 and has since experienced a sharp decline, largely due to the ongoing sell-off in the crypto industry amid rising geopolitical risks.

The token has fallen below key support at $1.70, its highest swing in June. On a positive note, it has found support at the 50-day moving average and formed an inverse head and shoulders pattern, suggesting a potential rebound to the next resistance point at $1.70.

Stay updated on the latest cryptocurrency news and trends.

#CryptoBulls #CryptoMarket