Facebook’s Oct. 28 decision to rebrand itself as Meta, to signify its plans to create an avatar-filled metaverse, prompted a speculative rally among cryptocurrencies that are related to virtual world projects.
The market value of Decentraland, which is a virtual world with its own currency (MANA), economy and social events, has exploded from $1.44 billion up to $2.08 million in the last 24 hours. Its native token MANA saw a jump of around 45% to $1.14 during the same time.
Daily price chart for MANA/USDT Source: TradingView
The Decentraland cryptocurrency traded at its intraday peak for $1.227, its highest level since May 18th.
FOMO called “Meta”
After assessing Facebook’s entry into the virtual world sector, traders began to rush into the Decentraland marketplace. After the company’s latest rebranding, Mark Zuckerberg, its chief executive officer, stated that it would now be “metaverse and not Facebook” from now on.
Co-founder and chief operating office of Corite, a music tech startup, Emil Angervall told Cointelegraph that Meta offers tremendous upside potential for the nonfungible token space (NFT), which is still emerging.
Angervail called it a highly liquid venture and said that Meta would eventually work with NFT projects in this space. This would allow the crypto sector to become mainstream. He said:
“We can expect unique NFT- and metaverse innovations tailored for Meta in the coming months.”
Axie Infinity is a Pokemon-styled “play to earn” virtual world and pet training game. Its market value increased by 10% over the past 24 hours from $7.74 billion, to $8.40 billion.
Daily price chart for AXS/USD Source: TradingView
Axie Infinity Shard, Axie Infinity (AXS), a native token of the Axie Infinity network, rallied by more than 20% to reach $150 for the first-ever time in just two weeks. AXS is the legal tender in Axie’s marketplace. Players can use it to buy digital pets (digital NFTs) in-game.
Other metaverse projects, including the Sandbox (SAND), Illuvium(ILV), and Division Network (DVI), rallied strongly as well, confirming a price boom in digital assets that focuses on virtual reality.
Metaverse tokens, and their performance over the last 24 hours. Source: Messari
The net market capitalization for metaverse tokens increased 13.40% to $12.36 trillion over the past 24 hours.
“The growth of these tokens was not surprising,” Mike Dickens (operations manager at NFT marketplace Blockasset), told Cointelegraph. He added:
“The new Facebook name refers to the groundbreaking work these NFT protocol have done in the recent years […] These factors also contributes to rising sentiments around these NFT tokens Friday.”
Greg Waisman is the co-founder and chief operational officer of Mercuryo, a crypto-based payment network. He advised traders to wait for a correction in price across multiverse crypto assets, despite recent gains.
Related: A virtual property developer sells digital land in Decentraland for $913K
Cointelegraph was told by the executive that traders will be more profitable if the market cools off after this huge price rise, but that Meta would ultimately push the sector towards higher valuations over the next quarters. Notably:
“Meta’s indirect influence could push this capitalization to $60 billion by the end of Q1 2022.” You should do your own research before making any investment or trading decision.