Decentraland is Down but Not Out by Any Means

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Metaverse plays are down. They, of course, shot upward on Oct. 28 when Meta Platforms (NASDAQ:FB) announced its rebrand from Facebook. Few things could have served as a more powerful catalyst. If Facebook was willing to forsake the moniker that vaulted it into the ranks of the most capitalized companies in the world in favor of a metaverse-inspired name, then this metaverse thing is real. That was the takeaway. 

A concept image representing Decentraland (MANA) with a token displayed in front of a price chart and a grid of dots.

Source: moxumbic / Shutterstock.com

A few months later, Decentraland (CCC:MANA-USD), one of the biggest beneficiaries, is down. That is true of metaverse investments at large. So, that begs the question: Did Meta Platforms miss the mark? Was the ascendance of Decentraland just a flash in the pan? The answer is no. 

Decentraland’s Current Bull Thesis 

The current commercial opportunity in Decentraland remains the same as it was when the Meta Platforms news broke: Companies are going to invest heavily in developing prime real estate in Decentraland. 

If the digital world of the metaverse becomes anywhere near as developed as our current reality, those companies will profit. That makes one wonder which companies are currently investing in the metaverse and what those investments look like. 

Favorable to MANA-USD

Since Facebook officially became Meta Platforms, prices of virtual real estate have moved upward by a purported 500%

That is positive news for Decentraland and that is positive news for its competitors. Tokens.com recently spent $2.5 million on a piece of real estate in Decentraland. Meanwhile, Republic Realm spent $4.3 million for a piece of land in The Sandbox (CCC:SAND-USD

Expect bigger, more prominent names to do so moving forward. My guess is that these early investments by lesser known names are serving as great test cases for more well-heeled firms. 

Yes, metaverse investments aren’t as hot as they once were. But it is certainly hyperbolic to assert that they are done by any means. Companies are going to continue to invest and establish digital real estate presences. 

Other News with Decentraland

Smaller sales of digital land are also occurring in Decentraland. Virtual land which was tokenized as an non fungible token (NFT) also sold for $153,300. That sale consisted of 97,000 plots of land, each of which measure 16 meters by 16 meters. 

The other thing to remember here is the role that Decentraland plays in the early, emerging metaverse. Decentraland and The Sandbox are the two largest open world metaverses. By dint of being first movers, both projects have massive advantages. And those advantages cannot be dismissed this early in the evolution of the metaverse. 

The Metaverse is Monumental

The metaverse may seem strange. After all, why should humans be interested in operating in a virtual world when we have a beautiful world all around us? While that logic may or may not appeal to your thinking, it doesn’t matter. 

That is because it will be developed whether you or I like it or not. It is not just Meta Platforms who is getting in on the action. Other tech giants are also making moves. In fact, Microsoft (NASDAQ:MSFT) recently threw its hat into the ring. It announced its acquisition of Activision (NASDAQ:ATVI) just a week ago. The word ‘metaverse’ was mentioned by management in connection to the move multiple times. 

And Microsoft is far from the only company making waves in the emerging digital universe. For those interested, I recently wrote an article about several of those firms, as well. Each and every one of them could end up with stronger connections to Decentraland moving forward. 

What to do with Decentraland

It is still the first inning of the metaverse. Decentraland is a major player, so even though its price has gone parabolic and since come down, I wouldn’t worry. It has established its spot as an early pioneering force in the metaverse. It could be a central force for a long time to come. 

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. 

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.


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