Will the Crypto Market Become More Volatile as US Inflation Hits 8.2%? Metaverse Projects Like Metacade Could Surge
- Breaking down market cycles
- Discussing the possible impact of inflation on the crypto market
- Explaining how Metacade could benefit in these conditions
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The USD consumer price index (CPI) came in at 8.2%. The figure is a year-on-year estimate that is provided on a monthly basis, providing insight into annual price increases for consumers. While it’s unclear just how much inflation will impact the crypto markets over time, the scenario in which crypto benefits could see some major changes for the world of Web3.
During these negative conditions, there has been one major shining light for crypto enthusiasts. Metacade has been showing huge potential for the future and its token presale has been one of the few opportunities for growth that can be found in any global market.
Booms and Busts – a Byproduct of the TradFi System?
The legacy financial system constantly goes through boom cycles and bust cycles. These cycles offset the supply of the US dollar, which became unlimited after the federal reserve was established in the 20th century. Since 1913, the dollar has become untethered to the global supply of gold. In that period, it lost 96% of its value, which leads to an inevitable rise in consumer prices.
When prices get too high, consumers stop spending. This reduces revenue for companies, while they still have the same (or higher) production costs. This typically leads to lay-offs, which can further reduce spending, and over time bubbles can burst. These price changes impact stock prices as well as the cost of goods and services, and we are currently right at the end of a 14-year-long boom cycle, which spells bad news for the near future of the global economy.
The Federal Reserve is trying to ensure that we have a “soft landing” by increasing interest rates, and you can see in the graph below that this has had a positive impact on the CPI during the last few months. Inflation, however, is still high.
How does inflation impact crypto?
There are 2 key arguments. One is that the continual devaluing of the US dollar will cause a complete loss of faith in the legacy financial system, which will cause more people to opt out of using the US dollar and into scarce digital currencies such as Bitcoin. With higher demand for Bitcoin, the price will inevitably rise because it has a permanently fixed supply.
On the other hand, cryptocurrencies are currently tied to the value of traditional technology stocks, such as Apple (AAPL) or Microsoft (MSFT). The current crypto bear market has coincided with big price crashes across the S&P500 with technology stocks falling significantly, such as Tesla (TSLA) dropping 60% and Meta/Facebook (META) crashing 75%.
In the same timeframe, Bitcoin has lost 77% of its value. Crypto markets typically follow the price of Bitcoin, and altcoins in particular can be hit hard. Many altcoins have seen 90% price reductions during 2022.
In short, inflation, booms, busts, stocks, and crypto, are all intricately related. Right now, we’re seeing some pretty disastrous price action as a result of high levels of US inflation and a loss in investor confidence, and crypto has been just as badly affected as any other asset class.
However, there is a silver lining. Projects building and performing well during these negative times have a high chance of making some insane gains as the markets recover. An example of an early-stage crypto project that is recording some major price rises during these bearish conditions is Metacade.
What is Metacade (MCADE)?
Metacade is building a huge metaverse gaming arcade in the world of Web3. While many of its altcoin counterparts have been performing badly in recent times, Metacade has been enjoying a very different level of success. The key reason for this is that the project has just launched its presale and investors have high conviction in its future value.
To find out more, this article takes a deep dive into the features being offered by Metacade and it’s clear to see why crypto lovers are so bullish on this new blockchain-based game.
Since Metacade is building a massive arcade in the metaverse, the platform will offer a vast range of exciting play-to-earn games for players to enjoy. Play-to-earn gaming is a new technological development for blockchain. The global gaming industry has over 3 billion active users and blockchain can deliver the same core gameplay as legacy studios, while also delivering integrated financial rewards for all players.
Metacade will be home to a long list of different play-to-earn games and looks set to become a hub for GameFi players. The project will also offer tournaments on the platform, where competitive players can take part and compete for the chance to win major MCADE prizes.
While legacy gaming platforms are centrally owned and managed, blockchain games work slightly differently. Metacade will work to become a decentralised autonomous organisation (DAO) over time, which will give full control to its users over the future of the platform itself.
As crypto enthusiasts are natural supporters of self–custody, this has proved very appealing to investors. Over time, MCADE holders will be able to use MCADE tokens to vote on governance proposals and directly influence the future of a top Web3 gaming platform.
So, how much could Metacade benefit from a faltering US economy?
During these bearish conditions, investors have lost confidence in many of their previous purchases, which has led to red candles across several key markets including technology and cryptocurrency.
However, some areas of Web3 continue to be popular. NFTs, for example, have held their value when compared with most stocks and blockchain gaming platforms continue to attract a large number of users from across the world.
Metacade is attracting a lot of attention within the Web3 community, as it could be a big project for the future of the industry. The project has plans to deliver some major value to investors and users alike and it has only just launched its earliest investment round.
During the MCADE token presale, the token price begins at $0.008. This is scheduled to rise to $0.02 per MCADE token before it later gets released to the general public. Investors have speculated that Metacade could rise over 100% in value during suboptimal market conditions. Many now believe it could be the next big thing in crypto.
You can participate in the MCADE presale here.