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Metaverse tokens, such as Decentraland’s MANA, could be the ticket to the future.

The metaverse, or the hyptonized digital iteration of the cosmos in which we exist, is the newest cryptocurrency buzzword. Many people view the metaverse to be the successor to the social-media era, with Facebook being one of the most recent high-profile platforms to hop on board.

Users frequently interact with a system-generated environment in the metaverse. And it’s clear that buying land parcels is the most talked-about topic there.

A digital land plot on the play-to-earn gaming platform Axie Infinity was recently sold for $2.3 million, according to reports. The terrain would reportedly be used to house unique content such as Chimera Bosses and Raids.

The most recent agreement

Decentraland, on the other hand, was fast to follow in Axie’s footsteps. It also sold a piece of virtual real estate to Metaverse Group for $2.43 million recently. In fact, the aforementioned amount is more than double its previous high of $913,000.

According to the company’s official statement, the virtual land would be used to support “fashion events” and “commerce” within the burgeoning “digital fashion sector.”

Even if there is potential for fashion in the metaverse to flourish, it should be remembered that this is yet new area. As a result, only time will tell if it will be able to meet expectations.

MANA’s unfavorable reaction

MANA, Decentraland’s native crypto, had been enjoying the attention and traction that its network had been receiving until recently. However, due to the overall market downturn, the token has now ceased climbing.

MANA reached a new high of about $6 on November 25. Regardless, it began its southward voyage after that and was hovering around the $4.5 level at the time of this research.

MANA/USDT || Source: TradingView

Several experts, notably Michaal van de Poppe of Amsterdam, have begun to caution investors about a possible sluggish period at this point. He stated in a recent analysis video,

… if you are in one of those projects, I think the point has come to actually take profits, especially when it comes to MANA (and SAND). Those have been running heavily.

He added,

You have to take profits before a heavy correction started to take place because at this point the downwards momentum might be heavier than the upwards momentum.

So, it appears that Poppe is correct, since the situation of most metrics also looked to confirm his downward thesis.

Consider the following: The network’s activity has already begun to deteriorate. In the three days between November 24 and 27, for example, the number of active addresses fell by more than a third.

Source: Santiment

Furthermore, the sell-side bias is beginning to take shape. A rise in the deposit transactions chart was noticed just a few hours ago. This indicator displays all incoming and outgoing token deposit transactions on a daily basis.

Upticks in the graph usually mean that HODLers have begun to sell their tokens. As a result, the current position of the market does not support the price rise story.

Furthermore, Santiment’s chart revealed that the dormant coins had begun to move, signaling that MANA’s accumulation phase has already begun to fade.

Market participants should consider abandoning the market before MANA’s value continues to fall.

Looking beyond the immediate future

Source: Santiment

People who sincerely feel that the metaverse is the way of the future and who can keep their assets locked in for a longer period of time can continue to invest in the market. Why?

One, since the network’s development activity is picking up and there’s some confidence in its long-term possibilities. Two, the metaverse and game technologies are still in their early stages, with a lot of room for growth.

In fact, the underlying tokens’ values, including MANA’s, might skyrocket in the coming years.

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