Immutable X is an NFT minting and trading platform designed by way of Immutable Studios. It is constructed on Ethereum Layer 2 (L2) whilst leveraging the ZK-rollup solution from StarkWare.
According to l2beats, Immutable X is the most important NFT Marketplace in terms of TVL on L2. Despite the current declaration of Loopring’s cooperation with Gamestop, coupled with the fact that different L2s’ NFT services have not begun to advantage traction, Immutable X holds the placement of a leading participant in phrases of buying and selling quantity as well.
Immutable X debuted in April 2021 to aid the NFT trading of Gods Unchained, one of the pinnacle play-to-earn games in 2021. However, there had not been any distinguished launches on Immutable X till currently.
Since early this 12 months, Immutable X has created lots of buzz with its integration with Rarible. In addition, the aforementioned platform has made many trends which includes its partnership with GameStop, its adoption through Ember Sword and Illuvium, their assertion of building a Layer three atop L2, its cooperation with Mastercard, minting free NFT to ApeCoin holders, and the launch of IMX staking.
With so much going on at the platform, this record objectives to demystify how the hype bolsters Immutable X’s fee propositions. Following this, we wreck down the worries and aggressive landscape round its price propositions. Read on as we attempt to give a extra holistic view of Immutable X behind the hype.
What the Hype Means to Immutable X
As stated previously, Immutable X has publicized many trends in a quick span of time. With all that has been going on at the platform, what does it suggest for Immutable X, and the way does its price upload to its growth trajectory?
Boosting NFT Trading Volume and Solidifying the Global Orderbook Through Partnerships
Some current developments that improved Immutable X’s cost proposition encompass the cooperation with Mastercard, Immutable X’s international orderbook being joined with the aid of Rarible and GameStop, and the minting of free NFT for ApeCoin holders.
After integrating with Mastercard, users on Immutable X should buy NFT with fiat currency. On the alternative hand, Rarible and GameStop’s integration with the worldwide orderbook boosts liquidity via attaining extra customers. Finally, the NFT minting for ApeCoin holders aspires to woo Yuga Labs’ groups onto the platform. All those projects endorse that Immutable X is striving to reinforce its NFT trading volume.
The area of expertise of Immutable X lies in the protocol orderbook enterprise model. It targets to clear up order fragmentation problems across NFT marketplaces with a international orderbook that connects the orderbook of Immutable X to different marketplaces. The orderbook liquidity can, in turn, be boosted after Rarible and GameStop structures connect with it.
Reviving Its Game Ecosystem on L2 With New and Upcoming Games
With Ember Sword running on its migration from Polygon to Immutable X and Illuvium’s report sales jacked up the buying and selling extent in early June, it seems that Immutable X is pushing to restore its sport surroundings. In addition, Immutable X has lately put forth a roadmap to build Layer 3s atop its layer 2.
Ember Sword and Illuvium’s capacity success on the platform might draw in more projects to the platform. MMORPG games, consisting of Ember Sword, are baked on top of a colossal in-game metaverse that demands excessive-frequency and occasional-price throughput and can potentially bring in a big person base to the platform. This serves nicely for Immutable X, because they aspire to create a platform for web3 games of the next era.
Immutable X’s Layer 3 idea targets to diversify its products, providing one separate chain for every sport, and this maneuver seeks to draw greater sport projects to its platform in the face of competition from Avalanche’s subnet solutions.
Therefore, the above movements are essential to the price proposition of empowering web3 video games for Immutable X.
Behind the Hype — NFT Collections Pale in Comparison to Leading Players
Fluctuating Transaction Volume
NFT buying and selling volume on Immutable X has seen its usaand downs for the reason that May 2022, with the quantity spiking in past due June and mid-July due to new collections like Land Loot, CryptoXolos, and 14041 Mutant Apes.
The normal buying and selling quantity, except for one-off minting sports, has dropped from two hundred ETH in Early May to the extent of round 150 ETH. To higher apprehend the ordinary buying and selling activities behind the hype, we excluded Illuvium Universe land sales on the platform, which raked in $seventy two million with 20,000 land plots bought in early June. When doing so, it is obvious that the everyday trading volume has remained sluggish, in keeping with the waning activities within the industry.
No Blockbuster Listing
The platform seems to lack in web hosting famous NFT collections. Recent NFT collection launches on Immutable X, specifically PFPs, encompass Land Loot, CryptoXolos, 14041 Mutant Apes, and Blockchains and Dragons; none of which gained traction inside the space. Most projects simplest have a few thousand Twitter followers, or maybe no Twitter money owed in any respect. In assessment, OpenSea is home to myriad famous collections including the Bored Ape Yacht Club and Doodles, while Magic Eden managed to compete with collections like Okay Bears and AI Degens.
Furthermore, a few collections on the platform look like counterfeit NFTs, along with 00000 IMX MAYC, 00000 Azuki X, 10000 Christmas Punks, 14041 Mutant Apes, (Doodles), etc. Most of these collections directly copy and paste from their real collections. Despite this, some of them, like 14041 Mutant Apes, even crowned the list of NFT trading at the platform. The existence of such collections is a red flag to the NFT surroundings.
Tough Competitive Environment
In phrases of buying and selling extent, Immutable X pales in comparison to OpenSea and different main gamers, with a quantity of around 2% of that of OpenSea. In addition, the wide variety of transactions for Immutable X is about 30% to 40% that of OpenSea’s.
Following Terra Classic’s fallout in early May, Immutable X’s transactions fell appreciably without being able to make a comeback, not like its competitors. The overall transactions include sport transactions, which whilst excluded, sees transaction numbers fall in addition behind its competitors.
As NFT marketplaces accrue their primary value through protocol fees, usually a percentage of buying and selling quantity, Immutable X has lots to do to trap up with its peers.
Due to blue chip NFT transactions bolstering the common trading fee on OpenSea, the average NFT rate on Immutable X and Magic Eden falls extensively beneath that of OpenSea. Premium initiatives are still staying at the Ethereum mainnet, dwarfing the tasks on Magic Eden and Immutable X.
Despite this, Immutable X nonetheless holds a aggressive gain towards its competition at the mainnet. This comes inside the form of gasoline expenses as its competitors on the Ethereum mainnet should pay a mean of $3.76 (since the average rate in keeping with NFT is two digits on Immutable X and Magic Eden), which can also seem irrational to users who often alternate their NFTs to exchange to OpenSea.
Competition over Protocol Fee
Despite loose gas costs, the transaction rate on Immutable X matches that of OpenSea.
However, on top of the two% protocol fee, consumers are charged 1% from the maker market (supplier aspect) and 1% from the taker marketplace (buyer side). The prices aim to catch up on the efforts in building the global orderbook, but in reality, it adds a capacity burden to consumers and, in turn, weakens the aggressive edge of Immutable X.
In addition, with x2y2’s success on the mainnet, the competition over lower protocol charges may cause a fee conflict for existing players. Lower transaction costs coupled with backed fuel expenses might also trap more collections to x2y2. In addition, centralized marketplaces which include Bybit and Binance now offer 1% NFT transaction expenses. As such, the competition on protocol fee is reduce-throat and unfriendly to smaller gamers inside the enterprise, including Immutable X.
Behind the hype over Immutable X’s many current developments, the ordinary trading volume at the platform is sluggish. Its trading extent pales in comparison to its competition, and the variety of transactions seem to fall behind. Moreover, the NFT collections inside Immutable X’s ecosystem lack competitiveness, lacking blockbuster listings which includes Okay Bear on Magic Eden. The above, coupled with the viable NFT thefts, in addition to the fierce competition in regards to protocol costs, does no longer bode well for Immutable X in the NFT space.
However, Immutable X seems to be transferring its recognition to building a recreation portfolio on the platform rather than NFT collections.
Behind the Hype — Immutable X’s Game Ecosystem Yet to Mature
Gods Unchained because the Backbone of Trading Activities
Game Portfolio and Volume/User Number within the Past 30 Days
The maximum legit game on the Immutable X platform is Gods Unchained. In the beyond 30 days, Gods Unchained occupied round 7% of the extent and 92% of transaction counts on the platform. On the alternative hand, other video games have remained in large part inactive on the grounds that their respective launches.
Users and quantity for Gods Unchained started out gaining traction considering the fact that migrating to the platform in June 2021. Its sports crowned out in January 2022, with day by day customers at 4.6k, day by day quantity at $1.Five million, and transactions at 68k.
Gods Unchained has remained distinctly healthy, and is the backbone of buying and selling activities on Immutable X. Despite the tumbling extent, users and the variety of transactions remain strong relative to the teetering P2E enterprise. However, to keep away from an over-reliance on Gods Unchained, it is necessary for Immutable X to expand its game portfolio.
As of the time of writing, Ember Sword is still running on its migration from Polygon to Immutable X. The MMORPG recreation remains within the checking out level and has but to benefit traction. Illuvium, however, has had report sales and improved extent in early June on Immutable X. Since the sport is still inside the closed beta stage, it has no longer but bolstered the activities at the platform.
Behind the hype, the Immutable X game surroundings does no longer appear as rich and sturdy, with the platform counting on Gods Unchained to live afloat. While it’s miles unclear if Ember Sword and Illuvian will repeat the achievement of Gods Unchained, we look forward to seeing how the total launches of the stated games would have an impact on the development of Immutable X later this yr.
Competition With Top Game Chains
The Most Popular Games Remain on Layer 1
Source: Footprint Analytics (facts as of July 14, 2022)
Per marketplace percentage of GameFi with the aid of lively daily game enthusiasts, WAX, Hive, Solana, BNB Chain, EOS, Polygon, and Ronin are a number of the pinnacle chains website hosting web3 games. Most are Layer 1 chains, with those like WAX, Hive, EOS focusing on the GameFi Industry and others, inclusive of Solana and BNB Chain, serving a extra preferred motive. For accuracy, Ronin is classified as a sidechain, at the same time as Polygon POS is a plasma.
Comparing Immutable X to WAX, the previous harbors around 1.5k day by day lively gamers, which is lagging considerably from WAX’s 366k. The essential purpose at the back of that is the dearth of famous games like Alien Worlds and Farmers World on WAX.
To fight this and benefit greater adoption through GameFi studios, Immutable X has to prove the feasibility of adopting an L2 solution via Illuvium and Ember Sword’s a hit migrations.
Throughput and Gas Fee
Note: the above numbers are hard estimates.
Based on the above, pinnacle sport chains can technique hundreds of transactions in a second, sufficiently assembly the fundamental necessities of web3 video games. Since many chains do no longer price gasoline costs, Immutable X does now not have a clear benefit in this aspect.
Despite no clear win in throughput, the important thing differentiator for Immutable X is its leveraged safety from Ethereum Mainnet. Many game chains perform their chains with a restricted number of node operators, sacrificing safety for scalability. The notorious Ronin bridge take advantage of need to strike a chord. Thus, recreation studios that prioritize safety have to take into account Immutable X.
The above table lists out top games marketplaces and their transaction costs. Most games adopt in-game marketplaces and price better expenses than those charged via 0.33-celebration marketplaces like Immutable X. As such, 1/3-party marketplaces could simply be favored via users due to their lower fees. Hence, web3 games might do nicely to weigh the improvement expenses against earnings generated from buying and selling costs while adopting an in-game marketplace as compared to at once the usage of Immutable X’s market.
Immutable X has created a number of buzz and ramped up its development via cooperation and partnerships. With this, the sport atmosphere aspires to boost buying and selling extent, solidify its worldwide orderbook model, revive its game surroundings, and try to accrue price to IMX token holders.
We delved into of its price propositions — buying and selling of collectibles and a market for web3 video games. We reviewed its cutting-edge commercial enterprise overall performance and the way it in comparison to its competitors, citing its aggressive blessings and concerns round its trends.
Should Immutable X keep to keep its aggressive benefit and grow its GamFfi portfolio, a promising future should certainly be visible for this platform. However, it’s miles important to bear in mind the reality that the web3 space is ever-evolving and aggressive. We need to not lose sight of the aforementioned concerns, both from the business perspective and competitor panorama, amidst the current hype over Immutable X.