Lately, metaverse tokens have been on fire, but are they turning into ashes now?
Interest in the Metaverse – which forms a bridge between the real and virtual worlds is constantly growing. But metaverse tokens have seen significant pain lately, falling up to 90 per cent from their recent peaks. Part of the reason behind this sharp decline in the value of Bitcoin is down to policy changes from the US Federal Reserve, as its chair, Jerome Powell, declared last December that the monthly rate at which it reduces asset purchases would be doubled by the Federal Open Market Committee (FOMC). The ongoing Russia-Ukraine crisis and inflation worries are resulting in the downfall of many metaverse cryptocurrencies. So, will the hot topic of the town, is get colder?
The prices of Decentraland and The Sandbox, two of the major metaverse cryptocurrencies that are leading the push to make virtual land a hot commodity, have collapsed since their November highs.
Mana, the native token of Decentraland is constantly falling. A decentralized virtual reality platform powered by Ethereum, Decentraland allows users to buy virtual plots of land to create and monetize content as more users move through the online space. Mana has been struggling this year but it is similar to almost all the coins.
The Sandbox is also one of the metaverse tokens that is facing the downfall. The Sandbox is built around blockchain and non-fungible token (NFT) technology. It’s about ownership and wants to let players monetize in-game resources, a key piece of the metaverse.
What is the reason behind the cryptocurrency crash?
These exclusive variables might appear to be unessential to investors in top metaverse cryptocurrencies. All things considered, the development of the metaverse isn’t really prone to be impacted in a significant manner by monetary policy, right?
Indeed, that is not really evident. The monetary policy choices made at the U.S. National Bank straightforwardly affect how much capital is accessible in the framework. Long periods of modest capital streaming into risk resources have made a perfect storm for high-risk, exceptional yield resources. The cryptocurrency market is one of numerous that have profited from these cheap money policies.
Obviously, the development profile for well-known play-to-earn metaverse tokens like Axie Infinity or The Sandbox remains attractive to many investors. Crypto organizations, for example, Theta give a key framework supporting the ascent of the metaverse in the cryptocurrency world additionally give an alluring investment thesis. But factors like cryptocurrency hacks and more are resulting in the downfall of many metaverse tokens.
Blockchain elation dominates its utilization case
Individuals reserve each privilege to be amped up for the future potential for blockchain technology. DeFi offers the chance of making almost instantaneous cross-border payments for minimal price and can democratize the process to guarantee in any event, developing business sector occupants can partake. There are likewise smart contract-based blockchains that can change supply chains.
But if there’s one constant with every single next-big-thing technology, it’s that investors always overestimate how quickly a new technology or service will be adopted. We’ve watched it happen 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?
Metaverse is a space worth looking at for investors with a genuinely long-haul time skyline. There’s a ton to like about how Axie Infinity and The Sandbox are situated at this moment. Theta’s job as a picks-and-digging tool play on this space is likewise appealing to many cryptocurrency enthusiasts.
Notwithstanding, it’s not outside the realm of possibilities that investors will actually want to get these metaverse tokens at a stunningly better cost sooner rather than later. In this current environment, momentum is not in favor of investors. However, those looking for discounts on their favorite metaverse cryptocurrencies are now seeing some rather attractive opportunities.