The value of Decentraland’s MANA has increased by 80% in the last 24 hours, reaching more than $2 billion in market capitalization.
Mark Zuckerberg, Chairman and CEO of Facebook, recently stated that the company will now put the Metaverse first, not Facebook.
According to Denis Vinokourov, head of research at Synergia Capital, “MANA’s dominant position in the metaverse ecosystem will likely remain solidified by Facebook’s move to rebrand and focus on building its own extension to the digital world.”
Decentraland is by far the most established of all the tokenized gaming platforms, according to Quantum Economics CEO Mati Greenspan.
There is a significant increase in nearly every asset in Index Coop’s Metaverse Index (MVI), which tracks crypto assets and protocols that are building out the virtual world. MVI reports that Sandbox (SAND), a virtual world where players can monetize their virtual experiences, is up 31%. Similarly, Axie Infinity’s token, AXS, the play-to-earn game and virtual world, surged by 17% in the last 24 hours.
According to Mason Nystrom, a senior analyst at Messari, Facebook’s commitment to building out the metaverse is a signal to the market that there is enormous value to be unlocked.
The virtual world
Vinokourov is still bullish on Decentraland’s MANA, now valued at $2.4 billion. “This market cap is far from extreme, given the sector growth potential,” he said.
Virtual worlds like Decentraland and Sandbox have stark differences to Facebook’s Meta vision for the metaverse, according to Nystrom.
Nystrom explains that he expects Meta to build “moats” around the metaverse, creating digital walled gardens, so that the holding company and its family of networks (for example, Facebook) have the ability to make money off it. Digital worlds like Sandbox and Decentraland, by contrast, will allow developers and gamers to make money for themselves.
“Essentially it’s the difference between a closed (Meta) and open (crypto) metaverse,’’ he explained.
Investors will likely want access to both avenues because how the metaverse will unfold is largely unknown, said Nystrom.