thecoinrepublic.com
Metaverse is steadily garnering mainstream audience towards itself. Many experts and enthusiasts in the digital ecosystem have deemed that the future of these virtual reality worlds and gaming tokens are bright. However, according to analysts, currently there is very little real adoption. Recently, as the crypto market faced carnage, with altcoins and meme-coins, metaverse tokens also had to suffer steep losses. Indeed, the virtual and gaming world received the hardest hit after the recent hype that was being witnessed over the last few weeks.
Metaverse tokens dropped significantly
NFTs and gaming metaverse have been considered as the future, which has seen tremendous growth since Faceboom rebranded itself to Meta. However, in the recent crypto market carnage, some of the virtual tokens also had to shed some blood.
Decentraland, one of the top ranking metaverse projects, has slipped by more than 25% over the past week, as per Messari, the crypto analysis firm. The native crypto token of the platform MANA lost some billions worth of its market cap, and sits at $6.79 billion.
Following MANA, Axie Infinity (AXS) also performed closely. One of the leading Play-to-Earn games dropped by more than 23% over the past week. Notably, similar to MANA, AXS also had to lose some billions worth of its market. According to data from CoinMarketCap, in the current scenario AXS has a total of $6.45 billion worth market cap.
Extremely speculative bets
According to Lucas Outumuro, it is no surprise that the metaverse ecosystem has received the hardest hit this weekend. Additionally, he claimed that these gaming ecosystem-based tokens are extremely speculative bets. Indeed, these tokens are evidenced by the high concentration of retailers.
Outumuro compared the scenario with what happened with the meme-based cryptocurrency, Shiba Inu (SHIB). The self-claimed DOGE killer had a high concentration of short term traders. Ultimately, it seems the digital currencies here show a robust indication of crypto riding hype cycles.
According to data from IntoTheBlock, metaverse tokens like MANA have a high percentage of holders that brought the tokens over the mast months. 32% of the holders of the tokens makeup less than 10% for major cryptocurrencies at the moment.
Metaverses are yet to see real adoption
The Sandbox (SAND) another rapidly growing metaverse project is also down by more than 25% over the past week. According to analysts, SAND has also mirrored Decentraland’s dip. Following the scenario in the ecosystem, Matthew Dibb, the co-founder and COO of Stack Funds highlighted that the future of the NFTs and gaming tokens seems bright. However, he also believes that yet the ecosystem needs to witness mainstream real adoption.