The metaverse, or hypnotized digital iteration of the universe we live in, is the latest fad to take over the crypto space. With Facebook being one of the latest high-profile platforms to jump on the bandwagon, the metaverse is considered by many to be the successor to the social media era.
In the metaverse, users often interact with a system-generated environment. And there, the purchase of land is obviously the hottest topic of discussion.
Just a day ago it was reported that a digital land on the gaming platform to win Axie Infinity was sold for approximately $ 2.3 million. The purchased land would apparently be used to host special content like Chimera Bosses and Raids.
The last deal
Well, Decentraland was quick to follow in Axie’s footsteps. It also recently ended up selling a parcel of virtual real estate to Metaverse Group for $ 2.43 million. In fact, the aforementioned value is more than double its own previous record of $ 913,000.
According to the official statement, the company would use the virtual earth to encourage “fashion shows” and “commerce” within the explosion of the “digital fashion industry.”
Well, while there is scope for fashion to flourish in the metaverse, it should not be forgotten that it is relatively unexplored territory. Therefore, only time can tell if you will be able to live up to the hype.
The negative reaction of MANA
Until recently, MANA, Decentraland’s native crypto, was busy enjoying the attention and traction its network was getting. However, the token has stopped recovering as of late, due to the broader market crash.
On November 25, MANA reached a new peak around $ 6. Post that you have embarked on your journey south, however, and were seen hovering around the $ 4.5 mark at the time of this review.
At this stage, several analysts, including Amsterdam-based Michaël van de Poppe, have started warning investors about a possible slow phase. In his recent video analysis he stated,
“… If you’re in one of those projects, I think the time has come to make a profit, especially when it comes to MANA (and SAND). Those have been working a lot. “
“You have to take profit before a strong correction starts because at this point the downside momentum could be heavier than the upside momentum.”
Well, it looks like Poppe is indeed on point because the state of most of the metrics seemed to support his downtrend narrative as well.
Consider this: network activity has already started to deteriorate. The number of active addresses, for example, fell by more than a third in the three-day period from November 24 to 27.
Furthermore, the bias on the sell side has also started to take concrete form. Just a few hours ago, a spike was noted in the deposit transactions chart. This indicator brings to light all the incoming and outgoing transactions involving token deposits on a daily basis.
The spikes on the chart generally indicate that the HODLers have started to abandon their tokens. Therefore, its current state does not encourage the bullish price trend narrative.
Furthermore, Santiment’s chart highlighted that dormant coins have also started Moving, implying that the MANA accumulation phase has already started to fade.
So before the value of MANA ends up sinking further, market participants may consider exiting the market.
Looking beyond the short term
Well, people who seriously believe that the metaverse is the future and can keep their funds locked up for quite a longer period can continue on the market. Why?
One, because network development activity is increasing apace and there is some kind of assurance about its future prospects. And two, the metaverse and gaming technology are currently in their infancy, and at this point, there are tremendous growth prospects lined up.
Indeed, the values of the underlying tokens, including that of MANA, could explode in the coming years.
This is a machine translation of our English version.