$MAGIC 'Life and Death Disaster': The Chain Game Sector is Bleeding, Leveraged Chains are 'Exploding', How Much Longer Can It Last?

MAGIC, as the leading token of the Arbitrum chain game sector, relies on the TreasureDAO ecosystem. Recently, the chain game sector has seen a user loss of over 40%, and the total locked amount of TreasureDAO has decreased by 62%, with practical scenarios shrinking. The project team stated in July that the USDC funding chain does not include the MAGIC treasury vouchers, signaling a shift in ecological focus and undermining confidence.

Platforms like CoinUnited provide 2000x leveraged trading for MAGIC, and the price decline has led to a chain of liquidations, with a single-day liquidation of 1.8 million USD on August 4, accounting for 21% of trading volume. At the same time, the number of addresses holding ≥ 1 million MAGIC has decreased by 30% over the months, and the institutional holding proportion has dropped from 38% to 24%, with large sell-offs accounting for 35% of the average daily trading volume, accelerating the decline in coin price.

As expectations for interest rate hikes by the Federal Reserve heat up, risk assets are being sold off, and GameFi funds are withdrawing. MAGIC has a correlation of 0.82 with the Nasdaq index and its volatility has tripled, while new public chains like Solana are rising, leading to a lag in technological upgrades and the erosion of payment scenarios.

In terms of operations, near 0.20, one can take a light position to go long, targeting previous highs, with a defense position around 0.16!

MAGIC's rebirth needs to prove it is game fuel and not a gambling tool. In the short term, it depends on whether a blockbuster chain game can be launched in Q3, and in the long term, whether it can transform into a cross-chain gaming infrastructure.

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