The net market cap of metaverse tokens has grown 13.40% to $12.36 billion in the last 24 hours. On October 28, Facebook’s decision to rebrand itself to Meta helped in sparking a speculative rally across cryptos that are owned by similar virtual world projects. This Meta brand is used to indicate Facebook’s plans to create an avatar-filled metaverse.
Decentraland is a virtual place that has its local economy with a currency that is known as (MANA) and social events. This virtual place is accessible to anyone that has a web browser. MANA saw its market valuation explode from $1.44 billion to around $2.08 billion in the last 24 hours.
The price action happened as its native token, MANA, spiked by nearly 45% to $1.14 within the same period.
During its intraday best, the Decentraland crypto was changing hands for $1.227 on October 29, 2021, its highest level since May 18.
The ‘Meta’ (Metaverse) FOMO
Traders began rushing into the Decentraland market after they assessed Facebook’s efforts into the virtual world industry. Mark Zuckerberg, the firm’s chief executive officer, said that the parent company will from now on be “metaverse first, not Facebook first” after the latest rebranding.
The co-founder and chief operating officer of one music tech company startup Corite, Emil Angervall, told reporters that Meta poses massive upside options and opportunities for the still-budding nonfungible token (NFT) space.
Terming it as a highly liquid venture, Angervail insisted that Meta would eventually partner with existing nonfungible token (NFT) projects in the sector. In general, it would help the cryptocurrency industry to join the mainstream. He stated:
“We can expect unique NFT and metaverse innovations tailored to Meta in the coming months.”
Axie Infinity, being a Pokemon-styled “play-to-earn” (P2E) pet training game and virtual world, was also affected. Its market valuation gained about 10% within 24 hours, from $7.74 billion to reach $8.40 billion.
Concurrently, Axie Infinity’s native token, Axie Infinity Shard (AXS), also gained almost 20% to reach $150 for the first time in two weeks. AXS serves mainly as legal tender in the Axie marketplace; where the players use it to buy in-game NFTs, which are digital pets.
The other metaverse projects and all their tokens, including Illuvium (ILV), Sandbox (SAND), and Division Network (DVI), also exploded strongly. This general market movement confirmed a price boom across the digital assets that mainly focus on virtual reality services.
Taking a look at the general picture, the cumulative market cap of metaverse tokens gained 13.4% to $12.36 billion in the last 24 hours. The operations manager of NFT marketplace Blockasset, Mike Dickens, said:
“The growth in these tokens did not come as a surprise. The new Facebook name alludes to the ground-breaking work these NFT protocols have done in recent years […] These factors also contribute to the rising sentiments surrounding these NFT tokens Friday.”
Correction Risks
The co-founder and chief operating officer of Mercuryo, a crypto-based payment network, Greg Waisman, insisted that traders need to wait for a price correction across multiverse cryptocurrency assets despite their recent gains.
He told reporters:
“Traders will profit more to place their bets when the market has cooled off from this massive price upshot.”
He was quick to add that Meta would generally push the industry to higher levels and valuations in the coming quarters. In that context:
“Meta’s exerted indirect influence may push this capitalization which may top $60 billion before the end of Q1 2022.”
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