Metaverse platform Decentraland (CCC:MANA-USD) has enjoyed an incredible run-up this year, and for good reason.
The metaverse has been the hottest buzzword going around these days. The promise of a virtual world where people can conduct business activities and socialize has investors scrambling to cash in on the up-and-coming trend.
With blockchain technology critical to its development Decentraland will continue to gain more traction with the expansion of the metaverse.
The critical role of blockchain technology in the metaverse was discussed in a recent Goldman Sachs report. Independent of a central authority, the blockchain can uniquely identify virtual objects.
Therefore, after Facebook’s rebrand to Meta Platforms (NASDAQ:FB), there has been a sharp increase in prices for metaverse-related cryptocurrencies. MANA, for instance, has shot up by 300% in value in the past couple of months.
However, the long-term case for any crypto is linked to its use-cases. With Decentraland, there are several use-cases for those bullish on the prospects of the metaverse.
Though the metaverse is still in its nascency, investing early is the key to generating massive returns over the long run.
Digital Real Estate
These days, my Facebook timeline is bombarded with ads from various websites offering digital real estate. Yes, you heard that right! Digital real estate.
A few years ago, I never thought that I could buy digital land and potentially make money out of it; however, that is now a reality with the metaverse.
Similar to a website, there are likely to be multiple metaverses where you can buy real estate. Digital property owners can then make money by leasing and advertising using their piece of land. Additionally, they could work with several brands that want to expand their presence in the metaverse.
Decentraland is among the first platforms to get into the emerging online real estate business. Recently, a plot of land inside the Decentraland metaverse sold for a whopping $2.43 million.
The investors who bought the land hope to trade and host fashion shows. There are multiple monetization options for users, and these opportunities are likely to increase over time.
The MANA token is used to transact inside the virtual platform of Decentraland. Given the explosion of interest in the business, crypto could grow at an incredible pace in the coming years.
Promising Future Ahead
Decentraland has generated impressive returns for its investors in a very short period. However, long-term crypto investors will want to look beyond the recent run-up and assess the crypto’s potential for the long haul.
Earlier this year, Grayscale launched the Decentraland Trust. This came as a surprise to many as Grayscale usually targets large-cap cryptocurrencies with solid fundamentals. The move may suggest that institutional investors see great value in the MANA token as a long-term investment.
Considering its use-cases, digital land ownership has several implications in the metaverse. The recent sales of land on the Decentraland metaverse have given us a glimpse of what could be in store for the future. Artists and other content creators are selling their NFTS on the metaverse, while companies look to set up their shops to gain more online traction. Therefore, the possibilities are endless with a metaverse such as Decentraland, which is still in its early development stages. Looking ahead, the MANA token could potentially rank among the cream of the crop in the crypto realm.
Bottom Line on Decentraland
Decentraland has been one of the top-performing cryptos in the past few months. Since Facebook’s strategic shift to the metaverse, several coins have enjoyed a huge bump in value, including MANA.
However, MANA is not a meme token, as its platform offers long-term value for its investors in the potentially ubiquitous metaverse.
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Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Muslim Farooque held a LONG position in Decentraland. 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.