6 Reasons To Invest In Decentraland Crypto In 2023
In the fourth quarter of 2021, Decentraland became a popular project that garnered attention from investors. After the bearish market started in 2022 and lasted through the year, popularity fell. The low point of the bear market for MANA was around $0.20, down from a high of around $3.50. However, it swiftly recovered, and by the interim high, Decentraland MANA price had risen by more than 190% to around $0.80.
It’s important to note that there are potential risks involved in investing in any cryptocurrency. This guide will explore the merits of holding Decentraland and the factors that may make it an attractive investment opportunity beyond its lucrative price.
6 reasons for investing in Decentraland
Accessible and disseminated easily
Investing a sizable sum is necessary for Bitcoin and Ethereum trading. Therefore, novices or those with limited financial resources often need help acquiring these coins, unlike Decentraland, where one can buy several units. In the virtual world of Decentraland, the MANA token is used. As a result, the consensus estimate for Decentraland MANA price is $0.39. With the ability to purchase multiple units of the MANA token, investors can acquire a significant amount for a fraction of the cost of other cryptocurrencies.
Virtual world experience
As a popular virtual environment, Decentraland provides exposure to the metaverse, leading to holders gaining metaverse exposure by investing in a blockchain-based game.
As the “first-ever virtual world owned by its users,” Decentraland is gaining popularity. As Decentraland aims to be a pioneer in this space, its holders can now invest in other successful metaverse games.
Decentraland is pioneering virtual living, shopping, working, and socializing.
Utility in a market economy
Decentraland is a game with a user-created virtual community where everyone can play, buy, and sell goods and services using the MANA token. While intriguing, this doesn’t prove MANA token holders should be excited.
When viewed holistically, owning a piece of the Metaverse has great value. Investors are buying Decentraland land to profit from the next predicted real estate boom.
NFT artists are building online galleries. Brands are opening virtual storefronts in Decentraland. If you want to “meet” other NFT buyers and sellers “in person” (through avatars), Decentraland hosts concerts and virtual seminars.
21st-century free markets are great, and Decentraland encourages user involvement, utility, and real-money exchange.
Decentraland is attracting large institutional investors
With the introduction of the Decentraland Trust by Grayscale, institutional investors are taking notice. This move was considered “exotic” as Grayscale usually invests in large-cap coins.
The mainstream adoption of Decentraland is attracting attention from prominent players in the market, with it becoming a top-25 cryptocurrency and MANA also receiving strong support.
With its introduction to the mainstream, Decentraland is establishing itself as the leading metaverse coin platform.
Validated in actual practice
The origins of many digital currencies can be traced back to attempts to address practical issues. However, the currencies can’t solve users’ problems in the real world, which can alter their appetites and ultimately lead to their demise. The MANA token was developed for use in the Decentraland market. This novel technology has been validated as the indigenous token for real estate transactions within the virtual world, including buying, selling, or leasing land. Over $4.2 million has been trading since March 2018, and weekly LAND accumulation is above $117,000.
Superior market share
With a market valuation of nearly $723 million, MANA is the currency of choice in Decentraland. The value of a cryptocurrency can be estimated by its market cap. To get the final figure, we multiply the current token price by the market value of all tokens.
A coin’s market valuation increases as its price increases. Cryptos also fluctuate with market conditions. A large ship, for instance, is better prepared to weather a severe storm in the coin market than a tiny one. Unlike a coin with a low value, a widespread digital coin can weather negative market fluctuations, making the MANA token less vulnerable to market fluctuations due to its widespread use.
Conclusion
While there may be headwinds in the metaverse, the macro tailwinds are stronger. It’s important to note that there are potential risks involved in investing in any cryptocurrency. The market is volatile, and prices can fluctuate rapidly. It’s essential to do your research before investing in any cryptocurrency. However, the tremendous growth of Decentraland MANA price over the past year may be just beginning, which means that Decentraland’s potential for growth and utility could make it a worthwhile addition to a diversified crypto portfolio.
McClatchy newsroom and editorial staff were not involved in the creation of this content.
