Although the technology is far from mainstream, it is quickly catching the attention of tech and cryptocurrency investors. Therefore, Metaverse Tokens represent an untapped opportunity for 2022.
The fact that one of the biggest tech companies in the world, Facebook, is betting on the metaverse, even going so far as to change its name to Meta, is also a plus. The company reportedly spent $10 billion on its metaverse project last year, calling it the future of technology. Cryptocurrencies and blockchain will play a vital role in this journey.
So, which Metaverse Tokens should you buy? Here is an overview of everything you need to know about the metaverse and the best tokens to invest in.
1) Axie Infinity (AXS)
Axie Infinity is a metaverse project that approximates the definition of metaverse, but is essentially a game. The local currency is the AXS token in this play-to-earn type of metaverse game.
Axie has one of the largest market caps of any metaverse cryptocurrency, at over $4 billion. However, the YTD performance is -27.68%. This may seem unpromising to many investors, but the value of the coin has started to rise again. Part of the reason could be the imminent launch ofAxie Infinity: Origina highly anticipated update that adds features and improves game mechanics.
Although based on the idea of the metaverse, the VR (virtual reality) has not been included so far.
The Axie Infinity game features characters, or Axies, and these Axies are non-fungible tokens that players can buy and trade. For example, they can create new Axies by combining two Axies. There is also virtual real estate in the metaverse of Axie Infinity, which could attract investors other than gamers. For example, a piece of land recently sold for $2.3 million.
How does Axie Infinity work?
Users can collect AXS, the Axie token, by playing their game. This game has been massively successful, and people are said to have quit their jobs to adopt the “play to win” lifestyle. The game allows to use its tokens in its metaverse. The AXS token can be converted into ETH and used to buy NFTs on Axie Marketplace.
2) Sandbox (SAND)
Metaverse project The Sandbox has shown impressive performance. The native token of the platform, SAND, has been steadily rising throughout 2021 and finally broke through the $1 mark last quarter, continuing its upward trajectory. As of April 12, SAND is selling at $2.79.
With a VR aspect, this project realizes the vision of the metaverse. Sandbox is essentially a game, and it has the backing of gaming brands like Atari. And HSBC recently purchased virtual real estate in its metaverse. But it is heavily based on creating and trading NFT’s. Players can create NFTs using tokens from the SAND metaverse.
Like countless other cryptocurrency projects, this one is based on Ethereum.
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Another promising factor is that it has a limited coin reserve of 3 billion tokens, of which 1.14 billion are in use. Its market capitalization stands at $3.27 billion as of April 12.
How does Sandbox work?
Sandbox offers creators true ownership of their creations in the form of non-fungible tokens (NFTs) and rewards them for participating in ecosystem transactions and interactions, such as transaction fees, staking or buying and selling game items, etc.
Game Maker allows anyone to create amazing 3D games for free. No coding is required since users can access visual scripting tools to create visually stunning games in minutes with the Marketplace where users can upload, publish and sell their creations made with VoxEdit.
3) Decentraland (MANA)
In terms of popularity, Decentraland is a cryptocurrency metaverse project that has often made the news. This is partly due to the NFT craze, which has also led to significant gains for the platform’s native tokens, MANA.
Many NFT owners have started using the platform to show off their NFTs. But NFTs aren’t the only thing on this metaverse platform. Its main feature is that you can also buy virtual landhence its name.
Sotheby’s, the luxury goods and art broker, bought land on Decentraland and used it to create a replica of its London offices. This shows that even big companies are eyeing metaverse projects.
Created in 2017, Decentraland is one of the oldest projects that took time to gain recognition. Although MANA’s performance has not been very stellar, its market capitalization reaches $4.79 billion at the start of 2022, making it largest metaverse token by market capitalization. Like many, if not most, cryptocurrencies, MANA is down significantly year-to-date, but is up 115% year over year.
How does Decentraland work?
MANA, the native token that powers the ecosystem, has a supply of 3.9 billion. Currently, there are 1.8 billion tokens in circulation. Gamers, creators, and businesses looking to take advantage of metaverse opportunities and be entertained use this platform. With having a large target audience comes a high demand for the coin. That’s what makes Decentraland a worthwhile purchase.