Immutable X (IMX) surges 77% after closing $200 million fundraising round

What is Immutable X?

NFT projects have been hit hard by the price drop across the cryptocurrency ecosystem. However, a few tokens are not affected much by the current negative conditions, thus escaping the trend of price collapse.

For example, the Immutable X (IMX) project is trying to regain its footing. Immutable X is an NFT-centric layer 2 (L2) scaling solution for the Ethereum network designed to provide near-instant transactions and no gas fees for NFT minting or trading.

Data from TradingView shows that the IMX price is up more than 77% since hitting a low of $1.10 on March 7 and hitting a daily high of $1.95 today.

IMX 4 Hour Price Chart | Source: TradingView
IMX 4 Hour Price Chart | Source: TradingView

The three reasons for the Immutable X reversal include completion of a $200 million Series C funding round, the launch of new projects on the platform, and overall interest in NFT that has maintained despite the bleak situation. recently.

IMX raises $200 million in seed funding round

The biggest IMX-boosting development in March was the successful completion of a Series C funding round, helping the project raise $200 million to invest in blockchain gaming.

The round was led by Singapore state investment firm Temasek and also included Animoca Brands, Tencent, Arrington Capital, and Princeville Capital.

IMX intends to use the funds raised to develop a L2 scaling solution on Ethereum and to scale Immutable Gaming Studio, which houses popular games like Gods Unchained and Guild of Guardians.

After this most recent funding round, the total value of the Immutable X protocol is $2.5 billion.

New game launch

The second factor was the addition of new projects to the protocol that helped attract new users to the ecosystem.

Vy Worlds and Habbo NFT are among the recent additions. Both are conducting airdrops for early adopters to help attract more people.

Offering NFT transactions with no gas fees and a carbon-neutral environment while still being able to operate on the Ethereum network is an attractive proposition for emerging projects. Therefore, it is likely that it will continue to attract many other projects in the future.

The undying popularity of NFT

The third factor that creates a new breeze for IMX is that the NFT field has never been “hot”.

The crypto ecosystem as a whole has underperformed since early 2022, leading to a drop in token prices and a drop in interest in high-value NFTs, but data from Dune Analytics shows that sales volume on OpenSea remains near an all-time high.

OpenSea Monthly Volume on Ethereum | Source: Dune Analytics
OpenSea Monthly Volume on Ethereum | Source: Dune Analytics

January and February 2022 saw the highest trading volume on OpenSea despite falling prices in the broader market, suggesting that interest and demand for NFTs is still growing.