Immutable's IMX +0.79% token surged on Friday after VanEck said the release of new blockchain-based video games next year could propel the price much higher.

The token rose by over 7% on Friday to $1.56 as of 2:33 p.m. ET, according to The Block data.

"IMX is most likely to become a top 25 coin by market cap with the release of Illuvium ILV +5.06% , Guild of Guardians, and other high-budget games in 2024 and a well-designed token that aligns interests better than most," the investment manager said in a report published Thursday.

IMX is an ERC-20 utility token that powers the Immutable ecosystem.

IMX price move. Image: The Block's Price Page.

Multiple games in development

Built using Unreal Engine 5 and on ImmutableX’s blockchain, Illuvium, which has multiple games in development but none of which are fully live, aims to release titles capable of competing with top non-blockchain games. With Illuvium's ILV token possessing a market cap above $620 million and more than 380,000 followers on X, the gaming project has garnered enough interest to be viewed by many as a candidate with the potential to drive mainstream adoption of web3 gaming.

VanEck analysts Matthew Sigel and Patrick Bush appear to be bullish on its prospects and how it will impact Immutable's token price.

"Immutable has multiple AAA games building on their platform that implement token models that cannot be simply farmed and are truly fun games to play," they said in the report. "These titles, which have been building for years and received $100m+ in funding, are being released in 2024. They could attract players at the scale of traditional AAA games."