Why all Metaverse coins are down so much
Updated: Sep 6, 2022
Metaverse and gaming-related tokens have endured soak misfortune samid a time when the broader crypto advertise is battling through a end of the week sell-off. Decentraland (MANA), the top-ranking metaverse resource agreeing to the cryptocurrency investigation firm Messari, is down 25% within the final seven days. MANA come to a advertise capitalization of $10 billion on Nov. 25 but presently sits at $6.63 billion.
Reason behind the cryptocurrency crash:
These exclusive variables don't seem to matter to top metaverse cryptocurrency investors. Overall, the evolution of the metaverse is likely to be less susceptible to significant monetary policy impacts.
In fact it's not so obvious. Monetary policy decisions by the US Federal Reserve directly affect the amount of capital available within the framework. Conservative capital poured into risky resources for a long period of time has created a perfect storm that has produced extraordinary returns on risky resources. The cryptocurrency market is one of many markets that have benefited from this easy money policy.
Clearly, the development profiles of well-known play-to-earn Metaverse tokens such as Axie Infinity and The Sandbox remain attractive to many investors. Crypto organizations such as Theta not only provide compelling investment thesis, but also provide a major framework to support the rise of the metaverse in the cryptocurrency world. However, many Metaverse tokens have been lost due to factors such as cryptocurrency hacks.
Blockchain exhilaration dominates use cases
Individuals reserve all privileges for future possibilities of blockchain technology. DeFi can provide the ability to make near-instant cross-border payments at minimal cost, democratizing processes and allowing evolving business people to participate in any case. There is also a smart contract based blockchain that can transform his chain.
But if there's one constant in all of the next big tech, he says, it's that investors consistently overestimate how quickly new technologies and services will be adopted. We've seen it with the advent of the internet, business-to-business commerce, genomics, 3D printing, and now blockchain technology.
So what's next for these Metaverse tokens and investors
The metaverse is an area worth considering for investors with a truly long-term skyline. There's a lot I like about how Axie Infinity and The Sandbox are set up at the moment. His Theta work as a pick-and-grab tool in this space also appeals to many cryptocurrency enthusiasts.
Nonetheless, it's not zero chance that investors will actually want to acquire these Metaverse tokens sooner or later at ridiculously low prices. Momentum is not in investors' favor in this current environment. However, those looking for discounts on their favorite Metaverse cryptocurrencies see a pretty compelling opportunity.