Why is MetaArena (TIMI) Up 50% Today?

MetaArena, a Web3 gaming project built on the Sei network, has emerged as one of the top gainers in the crypto market in the past 24 hours. Its native cryptocurrency, TIMI, soared by over 50% to a trading price above $0.0924.

The crypto project’s surge followed its announcement of a plan to acquire Wombat, a rival Web3 gaming platform. This is part of MetaArena’s “multi-million-dollar acquisition plan,” which runs from the fourth quarter of this year to the first quarter of next year.

MetaArena to Acquire Wombat

MetaArena is a gaming project that leverages zero-knowledge proofs (ZKPs) to achieve decentralized logic. According to the project, this approach reduces gas fees and improves the overall gameplay experience for players. It also provides the infrastructure required to build on-chain games or migrate existing ones.

Acquiring Wombat is part of its strategy to expand its ecosystem. Instead of focusing solely on its ZKP-enabled game platform, MetaArena seeks to grow into an ecosystem that “can serve more applications, users, and real-world scenarios to drive ecosystem expansion.”

MetaArena noted that it chose Wombat because of its large user base, game content, existing revenue stream, and “mature task system.” Explaining how both projects blend, MetaArena explained in its announcement:

“MetaArena provides the underlying execution capability, while Wombat provides users and content. The combination creates a clear synergistic effect: execution capability enters real scenarios, user behavior receives trusted verification, and the content ecosystem gains distribution capacity, accelerating the overall ecosystem.”

Notably, the latest acquisition news is the first of many to come within the next few months. Aiming to grow its user base to around 5-10 million, MetaArena noted that it would focus on acquiring game projects with a notable user base, stable retention, and various monetization streams.

TIMI Token Soars

Following the acquisition, TIMI’s price surged rapidly. Although its value increased significantly, it is still about 2% below its price on November 17th, when it reached an all-time high.

The ATH coincided with MetaArena’s launch of its decentralized autonomous organization (DAO). Like other DAOs, MetaArena DAO allows TIMI holders to decide on proposals and other endeavours that determine the future of the game-themed project. These include “gameplay direction” and “economic parameters.”

At the time of writing, the cryptocurrency’s value has retraced to $0.09015. Its market capitalization and 24-hour trading volume were $32.84 million and $8.18 million, respectively.

Crypto Market Sees More Acquisitions

MetaArena’s acquisition news is just one of many acquisitions in the crypto market during the current market cycle. For instance, last month, Coinbase spent $375 million in buying Echo, a fundraising platform.

Earlier this month, the blockchain payment platform Ripple completed its fourth acquisition this year, namely Palisade, a crypto custodian platform. Last week, CoinTab reported that Naver, South Korea’s leading internet search engine, plans to acquire Dunamu, the parent company of popular crypto exchange Upbit.

The reason for these acquisitions is not far-fetched. As prices of cryptocurrencies like bitcoin soared to new price peaks weeks ago, more investors have joined the crypto bandwagon. This means that crypto exchanges and other crypto-related service providers record more cash inflow in their records. Hence, they have money to spend in acquiring various projects to aid their business growth across diverse markets and jurisdictions.

The post Why is MetaArena (TIMI) Up 50% Today? appeared first on CoinTab News.