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According to the data, companies operating in the market of non-fungible tokens (NFT) are seeing an increase in their presence in cryptocurrency transactions.
About 38% of mergers and acquisitions among non-fungible tokens (NFTs) and so-called gaming financial companies (GameFi) occurred in the last two quarters.
According to a report published July 13 by John Dantony of The Block Research, 53 mergers and acquisitions have been concluded in NFT and GameFi since 2013. In the first and second quarters of 2022, eight and twelve transactions were concluded, respectively. Those 20 deals were the biggest surge in mergers and acquisitions in these industries on record.
A record twelve trades in the second quarter of 2022 occurred during the cooling of the NFT market, when minimum prices and market volume fell significantly.
At the beginning of the year, it was believed that NFTs were isolated from market conditions, as they provide more features, such as access to an exclusive community or in-game use, than other types of crypto tokens. These assets, such as artworks or foreclosures, are also more illiquid, meaning they are harder to sell. That isolation didn’t last long, but it seems like NFT companies are still the target of mergers and acquisitions in a bear market.
In fact, the largest M&A deal in the second quarter of 2022 involved NFT and GameFi, specifically OpenSea’s $238 million acquisition of Gem.
Author: Anton Zaitsev, Analyst Freedman Club Crypto News
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