Facebook’s (NASDAQ:FB) much-talked-about corporate rebranding has resulted in a major spike in price for MANA-USD. Decentraland’s (CCC:MANA-USD) cryptocurrency is up over 300% this month, having been one of the more obscure altcoins before Facebook’s metaverse announcement. However, the real question is whether it can sustain this rally and become a significant player in the crypto realm.
Decentraland is essentially a decentralized virtual world developed on the Ethereum (CCC:ETH-USD) blockchain. It enables users to purchase and trade digital land through digital assets and then effectively monetize them. Users have complete ownership of their virtual land and can carry out multiple activities on the platform.
Decentraland is led by the DAO (decentralized autonomous organization), which effectively owns its core assets and smart contracts. Moreover, it aims to ease the development of metaverse projects through its robust platform.
Most crypto analysts believe that MANA has a bright future ahead and will continue rallying to new heights. Moreover, Decentraland will continue to gain more traction as the ubiquity of the metaverse grows over time.
Enter The Metaverse
The metaverse has become the latest buzzword after Facebook’s recent rebranding. However, many would be unaware about what it is and what it holds for the future. According to US Today, Metaverse essentially involves a virtual world that integrates several technologies, including AR, VR, and other means of communication.
Therefore, as the metaverse gains more traction, it will offer users an alternate world where they can communicate and co-exist. Inklings of the metaverse phenomenon are apparent in video games like Minecraft.
How does Decentraland factor into the Metaverse phenomenon? By using MANA, users can purchase and upgrade their virtual properties whenever they want as the platform focuses on the creation of monetizable user-generated content. It also provides a game-like online environment where people can create explorable virtual lands and participate in social games.
Decentraland’s Future Outlook
Decentraland is one of the oldest metaverse projects in the market today. The Facebook rebranding event was the catalyst that MANA needed to burst out of obscurity. Moreover, its development is commendable considering the problems that the project has encountered since its inception.
Most investors might feel that the platform went through a watershed moment late in October, however, the reality is that there has been significant institutional demand for MANA since March this year. The amount of funds held in Decentraland’s Grayscale Trust has grown over 50% since March.
Additionally, in the future, Decentraland has plans to work on the interoperability of its metaverse with other crypto metaverse worlds. It will be using a protocol in IPSME (Idempotent Publish/Subscribe Messaging Environment) to achieve its goals.
Moreover, interoperability may be a key differentiator for Decentraland in its efforts to become the most dominant meta coin in the market. Most experts are of the view that one metaverse cannot dominate proceedings. However, cross-metaverse bridges will ensure users can keep their possessions and conveniently migrate between different metaverses.
Nevertheless, there are several challenges in achieving metaverse interoperability. The most obvious problem relates to accessibility. Can the metaverse be accessible to anyone? And will it be tied to a particular medium? At this point, it appears that MANA is moving in the right direction. Though it may be slightly expensive relative to its fundamentals, but may grow into them in the not-so-distant future.
Bottomline On MANA-USD
MANA-USD has blown up after Facebook’s Meta announcement. Most investors are wondering whether the event was a flash in the pan for the crypto. However, the truth is that Decentraland offers solid use-cases for those looking to invest in the metaverse. It is likely to continue growing at a sustainable pace as it improves its features and the robustness of its platform.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.