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Immutable X surges 50% after $200 million fundraising round ends

Nonfungible token (NFT) projects have been hit hard by the price drop across the crypto ecosystem, and the current bearish conditions have saved few tokens from the price crash.

One project trying to regain its footing is Immutable X (IMX), an NFT-focused Layer 2 scaling solution for the Ethereum network designed to provide near-instant and zero-traffic transactions. Mining and transaction fees.

Data from Cointelegraph Markets Pro and TradingView shows that the IMX price has gained 69.6% since hitting a low of $1.09 on March 7 to hit a daily high of $1.86 on March 11.

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IMX/USDT 4-hour chart. Source: TradingView

The three reasons for the reversal in IMX include the completion of a $200 million Series C funding round, the launch of new projects on the platform, and the overall sustained interest in NFT despite the upheaval. recent price drop.

IMX Raises $200 Million in Seed Funding

The most impactful development that gave IMX a boost in March was a success complete Series C . funding round that saw the project raise $200 million to invest in the blockchain game.

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

IMX intends to use the funds raised to develop its L2 scaling solution on Ethereum and scale up Immutable Gaming Studio, which hosts 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 released

The second factor that brings added value to IMX is the addition of new projects to the protocol that have helped attract new users to the ecosystem.

Some recent additions include Vy Worlds and Habbo NFT, both of which have airdropped early adopters as a way to help attract more users.

Offering NFT transactions without gas and a carbon-free environment while still being able to operate on the Ethereum network is an attractive proposition for emerging projects. It will likely continue to attract new projects to IMX in the future.

Related: Immutable X (IMX) price skyrocketed after partnering with GameStop and launching a new project

The undying popularity of NFTs

The third factor creating the wind for IMX is the continued popularity of the NFT sector.

The cryptocurrency ecosystem as a whole has been on the decline since the beginning of 2022, resulting in a drop in token prices and a decrease in interest in high-value NFTs. However, data from Dune Analytics shows that sales volume on OpenSea remains near all-time highs.

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OpenSea monthly volume on Ethereum. Source: Dune Analytics

January and February 2022 saw the highest volume of transactions ever traded on OpenSea despite downside in the broader market, suggesting that interest and demand for NFTs is still growing.

VORTECS™ data from Cointelegraph Markets Pro began spotting a bullish outlook for IMX on March 9 ahead of the recent price rally.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison between current and historical market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

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VORTECS™ score (green) against IMX price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for IMX spiked into the green zone on March 9 and peaked at 81 around 19 hours before the price rallied 29% the next day.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move is risky, you should do your own research when making your decision.