Will The Illuvium ILV Crypto Catastrophe Persist? Earning yield V3 Set To Launch
Metaverse? Anyone? That was the hype of 2020-2021. It became so trending that Facebook rebranded itself as Meta. There was a widespread belief that this technology would transform crypto gaming by 2025, with Illuvium being a leading player.
Fast forward about four years, and there’s little to show for it. The crypto gaming landscape has taken a severe hit, and only a handful that persist today, even with some of the top cryptocurrencies at peak values, are losing money rapidly.
Illuvium is in a dire situation. Plummeting prices for Bitcoin, ETH, and Solana haven’t helped its cause either. The ILV crypto asset has plummeted by 99.6% from its peak of $1,911, reached in late 2021. Over the past year alone,
Illuvium
0.26%
Illuvium
ILV
Price
$8.25
0.26% /24h
Volume in 24h
$6.68M
Price 7d
has dropped by almost 80%.
(Source: Coingecko)
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Illuvium Crypto: Why Is It Plummeting So Rapidly?
The crypto sector is unique in that speculation plays a significant role. A few years ago, certain NFTs commanded millions. Then the year 2022 arrived, and they became nearly worthless.
The lengthy crypto downturn forced many projects to shut down.
Others, such as Illuvium, are grappling with an extremely low number of active users.
(Source: DappRadar)
Recent on-chain insights shared on X indicate that Illuvium might be facing challenges, and a available volume crisis may be on the horizon.
The Illuvium Treasury currently holds $4.9M in stablecoins. In October 2025, there was a withdrawal of $200,000 from the Treasury.
So @illuviumio is in a tough spot. Here’s the situation:
Analyzing the treasury address for $ILV reveals important data about this project’s viability.In summary:
Short funds, excessive burn rate, and liquidating $ILV to cover costs— Cryptocondom Intern | Dubai Arc
Since September, Illuvium has been liquidating ILV from its Treasury to manage expenses. Just last week, they sold over $6,000 worth of ILV. The concerning trend is the escalation in the volume of ILV being sold.
They began with $830 worth of ILV crypto two months ago, then offloaded another $2,790 two weeks back.
Changes have also occurred in other areas. From mid-2025 onwards, Treasury withdrawals have included both USDC and paired ILV crypto.
Moreover, co-founder Kieran Warwick has been selling ILV since April 2025.
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The Good News: Illuvium is Still Developing
Whether this downward trend will shift remains to be seen. Ideally, if the team halts selling ILV crypto, the token might stabilize and rebound.
A part of this recovery will hinge on the development and the team delivering more improvements.
In a reality where we didn’t owe investors transparency, we could develop quietly and say “just wait and watch.”
But that’s not the case.
No game in this field operates that way.
Market demand engaging gameplay.
Market demand exceptional gameplay. pic.twitter.com/6I4HZ0Gljg
— Kieran.eth (@KieranWarwick) November 12, 2025
Operating as a network for play-to-earn games on ImmutableX, an ETH layer-2, offers advantages like minimal fees that may draw in users.
In the coming six months, the community is expected to start testing the MMO Playtest features.
There’s plenty to be enthusiastic about for @illuviumio in the upcoming 6+ months.
Kieran just mentioned that the MMO Playtest features are finalized; this means community testing is likely to commence before 2026.
Additionally, the Arena will soon see quicker… pic.twitter.com/7j2nA4M7gK
— Scoriox
Furthermore, the Illuvium Arena is anticipated to offer speedier matches. Users can participate in modes such as tournaments, battle passes, and more.
Moreover, ILV locking tokens v3 might launch soon, providing incentives for holders to retain their tokens.
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Will the Illuvium ILV Crypto Decline Persist?
- Crypto winter has decimated NFTs, the virtual world, and gaming
- Illuvium is progressing on ImmutableX
- The team continues to offload ILV crypto
- The team is launching new products, with earning yield v3 expected to be available soon
The post Will the Illuvium ILV Crypto Devastation Continue? Staking V3 to Launch appeared first on 99Bitcoins.
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