It’s not all doom and gloom in the cryptocurrency sector after one of the longest bloodbaths run in recent years. A correction from record highs has seen many cryptocurrencies post double-digit percentage losses amid the growing chatter of a bubble burst. While Bitcoin and Ethereum are down by more than 30% for the year, the metaverse cryptocurrency world is showing tremendous potential.
Metaverse is the latest sensation taking the crypto world by storm. Coins tied to the 3D virtual world have been in high demand as companies like Meta, Louis Vuitton, and Microsoft continue to invest heavily in the metaverse and introduce new use cases of the underlying technology.
Metaverse, which is a 3D world powered by cryptocurrency and blockchain technology, is increasingly offering new opportunities to investors away from traditional digital assets. Therefore metaverse tokens are up over the past 12 months.
Sandbox (SAND) up
The Sandbox (SAND) metaverse token has been up by more than 300% over the past 12 months. While the metaverse coin has been under pressure, it has outperformed the likes of Bitcoin and Ethereum over the past 12 months.
SAND’s outperformance stems from its native platform, which operates as a decentralized exchange powered by the Ethereum blockchain. It is one of the top choices for celebrities, including Snoop Dogg and Steve Aoki, given its vast pool of non-fungible tokens and collectibles on the metaverse marketplace.
AXS impressive run
Axie Infinity is another metaverse project that is sending shockwaves in the emerging sphere. The marketplace allows players to transact their in-game assets and non-fungible tokens for digital currencies. Its growing prominence around NFTs has been one factor that has helped propel the AXIE coin up the charts.
AXS native token is already up by more than 400% over the past 12 months. Like SAND, it has also pulled back in 2022 but is still up over the past 12 months. As a governance token, AXS allows holders to vote on the future development of the Axie Infinity platform.
MANA growing popularity
MANA, the native token that powers the Decentraland 3D virtual reality platform, is also flying high amid a growing focus on the metaverse world. It continues to elicit strong demand as it enables users and creative to purchase and customize lands for leisure.
In addition, the token is used to buy upgradable virtual lands in the metaverse. While the metaverse coin has taken a significant hit in 2022, investors are still betting on it to reach highs on the overall cryptocurrency industry bottoming out. Two Asian billionaires-owned hotel groups building lands in the Decentraland metaverse underscores the growing utility.
Behind metaverse tokens growing popularity.
Metaverse tokens are garnering the attention of tech and crypto investors as they provide an effective way of diversifying investments in the broader cryptocurrency sector. In addition, it’s becoming increasingly clear they present an untapped opportunity depicted by big tech companies such as Meta getting involved.
The Facebook parent company, the high profile name in the metaverse world, spent over $10 billion on metaverse projects last year, affirming why it is the next frontier in the digital assets world. Given that metaverse projects are fairly new, the coin valuations are quite low, which continue to attract most investment dollars.
However, it does not mean that all projects are worth investing in. MANA, AXS, and SAND are the mainstream names in the metaverse world as they have shown potential through performance and utility. In addition, they come backed by robust use cases going by the underlying platforms that host NFTs and other collectibles.