Overvaluation risks surround Yield Guild Games as YGG rallies over 40% this week

Key Yield Guild Games Token Takeaways

• Play to earn gaming token YGG risks a sharp selloff amid overbought concerns.
• The native token of Yield Guild Games posted over 40% gains this week.
• RSI numbers shot beyond the usual 30-70 range.

JAIPUR (CoinChapter.com) – YGG, the native token of the Yield Guild Games, sparked selloff fears after rallying over 40% this week. IN A NEAR-VERTICAL RUN IN THURSDAY’S EARLY MORNING LONDON SESSION, the YGG/USD pair reclaimed the initial all-time high of $9.29. However, subsequent selloffs led to the pair declining to $8.05. Further correction risks remain.

The Yield Guild Games underlying token’s rally came amidst a FOMO-induced fund influx into the metaverse token market. Additionally, the hype surrounding metaverse tokens largely took shape due to Facebook’s rebranding to Meta.

Top assets scored triple-digit gains ever since Mark Zuckerberg claimed to shift his focus majorly from social media operations to the emerging virtual space where users can don digital avatars to interact with each other and their surrounding environments and various digital objects.

Related: Metaverse token market jumps 13% as AXS, MANA, SAND rally

Demand for YGG

The Philippines-based platform essentially functions as an on-ramp to the play-to-earn gaming space. In detail, Yield Guild Games lowers the entry barrier to blockchain metaverse gaming by lending in-game NFT assets to beginner players at no upfront cost.

And for that, creators of the platform have partnered with leading blockchain games such as Axie Infinity, Influence, CyBall, Thetan Arena, KOGs SLAM!, MOBOX, Aavegotchi, DeHorizon, and Genopets. Overall, Yield Guild Games now partners with over 18 top NFT games, including Splinterlands, Zed Run, etc.

The blockchain gaming guild has snapped up many in-game NFT assets, such as tokenized plots of land and avatars. Some gaming projects are in their formative or pre-launch stages. Others, such as Aavegotchi and MOBOX, are already online.

YGG is the native token of Yield Guild Games, which will eventually transition to a full DAO. The asset follows the ERC-20 token standard and is backed by Yield Guild’s assets. Currently, YGG serves as a governance token but will eventually entitle its holders to cash flows from the underlying activities of the guild.

Related: Decentraland (MANA) price gains 19% amid Bitcoin-led market correction

Players can use it as a medium of exchange for availing services on the guild. Plus, YGG also provides staking opportunities and exclusive access to content and merchandise.

As per the platform’s roadmap, for now, Yield Guild’s asset base will revolve mostly around Axie Infinity, The Sandbox, and League of Kingdoms. Thus, yield Guild Games can be considered a voting and financial equity provider in a productive NFT fund.

Correction Incoming

YGG’s face-melting rally came amidst the platform’s latest partnership spree. Notable events were the recent addition to Satoshi’s Legions and preparation for the upcoming launch of Thetan’s Arena.

The resulting hype unleashed a sporadic YGG buying mania amongst FOM-induced buyers. But the YGG/USD pair risks dipping on account of profit-booking. The pair looks to retest the support at $7. In the worst-case scenario, YGG could even tap $5.7, but the chances are bleak.

A correction would continue until the token reaches oversold levels on the relative strength index (RSI) meter (below 50). Then, bullish momentum would pick up again with the next all-time high target at $12. But until a full-fledged correction materializes, it is better to wait and watch.

Overall, Yield Guild Games’ native blockchain asset holds bullish potential due to the hype surrounding metaverse tokens and projects like Decentraland rewarding investors with triple-digit monthly gains.