The Metaverse flop and its continued impact on AXS, SAND, and MANA
- The stocks of cryptocurrencies related to the Metaverse shot up when Facebook rebranded to Meta.
- AXS, SAND, and MANA have struggled to reclaim the price range they saw at the height of the Metaverse hype.
The announcement of Metaverse’s launch by Meta sent waves of excitement through the tech world, igniting discussions about its potential as the future of the internet. As anticipation grew, so did the stock prices of various cryptocurrencies associated with the Metaverse. But amid the hype, rumors of a Metaverse flop began to circulate, fueled by the project’s failure to materialize despite the initial excitement.
Read Axie Infinity’s [AXS] Price Prediction 2023-24
Over the years, the gradual decline in the value of crypto assets linked to this realm further supported the notion of this flop.
Understanding the Metaverse
The Metaverse refers to a virtual reality space where people can interact with each other and digital objects in a computer-generated environment. It is a collective virtual shared space encompassing virtual worlds, augmented reality, and the internet.
Reviving an age-old concept, Mark Zuckerberg brought the Metaverse back into the spotlight by cleverly rebranding his company as Meta. The Metaverse envisions a fully immersive and interconnected digital realm that surpasses the limitations of traditional websites and applications.
It aims to give users a sense of presence and agency, enabling them to engage in various activities, socialize, work, play games, conduct business, and explore virtual environments.
In the Metaverse, users are typically represented by avatars – digital versions of themselves. They navigate the virtual space, interact with other users, and access digital content and experiences. The Metaverse is expected to incorporate advanced technologies such as virtual reality (VR), augmented reality (AR), artificial intelligence (AI), blockchain, and more.
During its peak, the Sandbox [SAND], Decentraland [MANA], and Axie Infinity [AXS] emerged as the darlings of the Metaverse hype. These projects gained significant attention, with renowned brands joining forces to introduce innovative products and services within their virtual landscapes.
However, as the Metaverse flop became a reality, their once-dazzling popularity began to fade, accompanied by a decline in the value of the assets connected to these ventures.
Possible reasons for the Metaverse flop
One of the reasons behind the Metaverse flop is the growing accessibility challenges it presents. Many users find themselves overwhelmed by the complexity of the experience, encountering frustrating bugs and errors along the way.
The user journey has become convoluted, requiring numerous steps to sign up, access games, and participate in events.
Additionally, newcomers are required to painstakingly create their avatars from scratch, failing to capture their interest. Furthermore, despite the initial hype, users have faced disappointing performance issues when engaging in shared virtual spaces, dampening their enthusiasm for the Metaverse.
Complaints have also arisen regarding the high costs associated with entry into the Metaverse, adding another barrier to widespread adoption.
Response of related cryptocurrencies so far
Axie Infinity [AXS]
Compared to figures from January, when the platform had 288,000 daily players, and the over 600,000 it boasted in July 2022, the decline becomes evident. The game has lost over 100,000 players year-to-date, highlighting the downward trend.
Despite the narrative of the Metaverse flop, AXS has exhibited intriguing price dynamics throughout the year. Starting the year at approximately $6.3, it was trading at around $6.4 at press time, indicating that it had not experienced a decline in value.
However, it’s worth noting that AXS underwent a significant price surge of 40% at one point this year, reaching the $10 price range. Unfortunately, a subsequent decline brought its value back to where it started the year.
Despite appearances, Axie Infinity still holds an impressive record in the NFT space. According to DappRadar’s statistics, it maintained the highest volume for an NFT collection, with a value surpassing $4.2 billion as of this writing.
The nearest competitor trailed behind with a volume of over $3.5 billion. This demonstrated that, despite challenges and fluctuations, Axie Infinity’s NFT collection continued to generate significant activity and interest.
The Sandbox [SAND]
The Sandbox, another crypto project in the Metaverse realm, has also experienced an intriguing price trajectory this year. Despite significant price fluctuations, its overall gain year-to-date has been minimal.
It witnessed a substantial price increase of over 28% during a spike around February, reaching a trading value of approximately $0.9. However, as of this writing, SAND is trading at around $0.4, reflecting a modest gain of over 1%.
While ups and downs have marked the journey of SAND’s price, it is important to note that the project continues to navigate the challenging Metaverse landscape. The price fluctuations illustrated the market’s volatility, but SAND remains active in the Metaverse crypto sphere.
Decentraland, another prominent Metaverse crypto project, experienced a notable price spike during a specific period this year. This was indicated by its daily time frame chart.
The chart revealed a surge of over 28% in price around January, with MANA trading at approximately $0.5. However, as of this writing, MANA was trading at around $0.4, reflecting an increase of over 1.5%.
The end of the Metaverse?
Indeed, despite the prevailing Metaverse flop narrative and the challenges faced by various Metaverse projects, the potential cannot be dismissed. We might anticipate a period of refinement and enhanced accessibility for the Metaverse, aimed at making its adoption more seamless and user-friendly.
How much are 1,10,100 MANAs worth today?
The industry may undergo iterative improvements, learning from shortcomings and addressing the complexities that hinder widespread adoption.
However, it is difficult to determine precisely how long it will take to reach that stage of maturity. Refining and perfecting the Metaverse experience will likely be gradual, influenced by technological advancements, user feedback, and the collective efforts of developers and innovators.