Why Metaverse Tokens Are More Dangerous When Cryptocurrency Markets Are Globally

Analysts say the future is bright for metavers and gaming tokens, but actual adoption remains to be seen. The metaverse and gaming-related tokens suffered even more as the cryptocurrency market collapsed entirely for the week.

The Meta Universe and gaming-related tokens suffered even greater damage with the expansion of the cryptocurrency market over the weekend.

Décentraland (MANA), No. MANA's retail sales reached $ 10 billion on November 25, but are now only $ 6.63 billion.

The AXS token for the game's flagship Axie Infinity also fell immediately after MANA, down 23% in the past 7 days. According to data from CoinMarketCap, retail sales of AXS increased by $ 9.77 billion on November 7, compared to the current $ 6.21 billion.

Lucas Outumuro, Research Director at IntoTheBlock, said: “It's no surprise that game / meta universe tokens have taken the most damage since the recent hype. short-term traders.

He said this has happened to Shiba Parts (SHIB) before. Considered the 'Dogecoin killer', short-term traders are also very strong. It is a strong symbol that the currency is in a cycle of hype. .

A study by IntoTheBlock found that MANA and other global brand owners had bought a percentage (32%) in the past 30 days, while the percentage of boys was currently trading in BTC and ETH for less than 10%.

The shock is the decline of the economy.

Bitcoin, the world's largest cryptocurrency by market cap, has fallen 15% in the past seven days. Bitcoin fell on Saturday, with the price hitting $ 42,400 on some exchanges.

The native cryptocurrency sand (SAND) of the blockchain-based virtual world "The Sandbox" fell 25% on the 7th, indicating the decline of MANA at the same time.

Matthew Dibb, co-founder and COO of Stack Funds, says the outlook for the Metaverse and gaming tokens looks bright, but adoption is scarce now.

“Most of the price increase is created by future earnings, not current earnings,” Dibb said. To make matters worse, after the recession some of the early investors decided to take a big deal and get their job done. "

Indexcoop's Metaverse Index, which tracks cryptocurrency assets and its commitment to creating a virtual world, fell 8.7% on the day.