Despite the uncertainty and debate around the metaverse as a concept, the sector could still rally as Meta Platforms (NASDAQ:META) continues to invest billions in the idea, bringing more attention and legitimacy to the space. I believe this can drive up the value of metaverse cryptos, which many virtual worlds use as their own in-game currencies.
But it’s not just the growth of the metaverse that could drive up the value of these cryptos. Several catalysts could drive excitement around the metaverse and these tokens. For example, cooling inflation and potentially a looser monetary policy in late 2023 will favor growth in cyclical assets like metaverse cryptos. And potential rate cuts coupled with the Bitcoin halving next year will boost the crypto market as a whole.
Nonetheless, I would note that the metaverse is still in its early stages, and there is a lot of uncertainty surrounding its growth and development. This can lead to a lot of volatility and risk when investing in related crypto projects. But if you believe metaverse cryptos will be trendy in the next rally, here are three to keep an eye on:
| MANA-USD | Decentraland | $0.53 |
| SAND-USD | The Sandbox | $0.527800 |
| EMB-USD | Overline Emblem | $0.016628 |
Decentraland (MANA)
Decentraland (MANA-USD) is a 3D browser-based virtual world whose native token is the Ethereum (ETH-USD)-based MANA. It was among the hottest metaverse cryptos in the last two years. Decentraland stood out among other metaverse projects due to its size and popularity, driving up prices within the virtual world. Real estate prices within Decentraland were soaring, with just 16-square meter blocks of virtual land going for $15,000 each. It also didn’t help that companies like Samsung, JP Morgan, PwC, and celebrities like Snoop Dogg, bought plots in the virtual world.
However, investors started to de-risk their portfolios amidst economic turbulence in 2022, and MANA reached its trough at 30 cents before bouncing to 50 cents and has been trading sideways since. I believe that’s a fair price considering the future growth potential here. It is a very well-known virtual world, and the player base will only increase in the long run as VR headset sales have been accelerating and gaining momentum.
The Sandbox (SAND)
The Sandbox (SAND-USD) is a very similar project to Decentraland as it is also based on Ethereum and has a similar valuation. What makes it different is that it is not browser-based and has better graphics. The SAND token also has a maximum supply limit, which makes it a little more compelling if you think long-term demand will eventually surpass supply. However, I would caution that the yearly inflation here is over 58%. That factor alone makes MANA much more tempting since the inflation rate of that token is just 1.94%.
Conversely, it has a higher player count. So it may be a better investment if you are looking to hold for years. But for the near and mid-term, MANA should be your go-to among metaverse cryptos.
Overline Emblem (EMB)
If you’re looking for more speculation and more upside potential, Overline Emblem (EMB-USD) might be a good bet. But I would not recommend putting anything substantial here since there is a lot of speculation baked in already.
The Overline project currently has a router called the “ōRouter“. that apparently lets you access the blockchain, use Web 3.0 apps and more without an internet connection. That’s very ambitious, and I don’t know how that could work without some sort of connection to a cell network, satellite or a well-established network of these routers in close range. Pre-sales with a steep price tag of $200-400 are open for quite a few months with no indications of the hardware working – or even existing.
Thus, I’d take this project with a grain of salt. But I wouldn’t rule out that this concept may work in dense areas and be a successful investment if you consider a multi-year timeframe.
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Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Omor Ibne Ehsan 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.
