Decentraland (MANA) is one of the hottest altcoins of the Metaverse sphere, which is continuing to attract investors. And, if the hype around Metaverse and NFTs continue, MANA- the utility token of Decantraland would keep posting on gains.
In less than two months, the price of MANA had jumped by over 8 times, from $0.76 (₹57.38) to $5.90 (₹445.45). Currently trading at the $3.70 (₹280) level, MANA is one of the top-performing altcoins with close to 400% gains during the same period.
Key Token Metrics
- Coin Rank: 27th
- Market Capitalization (as of 9th Dec 2021): $6.73 billion
- Market Dominance: 0.29%
- Coin Economics: Deflationary
- Coin Burn Rate: Fees collected from sellers are burned
- Total Coin Supply: 2.19 billion MANA
- Circulating Supply: 1.37 billion MANA (63% of total supply)
Technical Analysis: MANA Price Prediction
The overall trend might look weak on the daily chart, but the MANA is getting strong support between the 38.2%- 50% level of the Fibo retracement scale, which is quite positive. Also, the 50 Day EMA line below provides strong support, and the MANA price has also bounced once from there.
To resume the uptrend, MANA has to break the above the highly resistive $3.91(₹295.20), followed by $4.10 (₹309.55) and $4.68 (₹351) levels. Keep a watch at the 50% level of the Fibo retracement scale, and if MANA breaks below that level, the overall trend will turn negative.
A Brief Overview of Decentraland
Have you heard of the popular mobile game FarmVille? This agriculture simulation-social game involves all aspects of farmland management like sowing seeds, ploughing land, harvesting crops, selling harvest, buying land, to raising livestock? You must be wondering how Decentraland is related to FarmVille.
It is not, but the concept of Decentraland is similar to FarmVille and is on a much larger scale. Confused, Let’s simplify it.
Decentraland is a blockchain-based virtual reality platform where you can buy, sell, and develop a parcel of land. Yes, you heard that right, land. The parcel of land is sold as NFTs, which is ERC-721 compatible, using which you can prove ownership of the virtual land. LAND tokens represent the virtual land within the Deentraland ecosystem, and as they are ERC-721 standard tokens, they are unique with exclusive API for each token.
Once purchased, what would you do with the virtual land? The first question that may strike you. So, you can develop the land by publishing content, building a virtual shopping mall, develop an interactive game that can be consumed by other virtual participants in exchange for fees.
Therefore, you can create a full-fledged decentralised virtual economy surrounding your virtual property and profit from it. And, to enable the virtual economy, all the transactions, including purchasing of land, should be done using Decentraland’s utility token MANA.
MANA Coin Economics
Mana has a total supply of 2.19 billion, of which 1.37 billion tokens, approximately 63% are in circulation.
Now the good part. Any transaction on the Decentraland marketplace charges a 2.5% fee on the sale, which the seller pays. And, as per the Decentraland protocol, the fees collected will be burned and taken out from the circulating supply, making it a deflationary token.
Approximately 22% of MANA tokens are burned to date and taken out from supply, making them scarce digital assets.
Decentraland’s Future Growth Prospects
Decentraland is backed by some serious investors in the cryptosphere, including CoinFund, Genesis One Capital, Grayscale Investments, etc.
Metaverse is still in its very early stages and how the industry will evolve is difficult to predict. However, Decentraland will benefit directly from the growth of the Metaverse as it is a leader in the segment.
Metaverse Group, an NFT-based real estate company, has bought a parcel of land at Decentraland’s Fashion District for 618,000 MANA, worth $2.43 million. The transaction has surprised many, but it also showcases the underlying demand for virtual real estate properties. The group has planned to develop the property for fashion shows and commerce.
In the future, we can see the virtual avatars of our favourite artists and musicians performing in the virtual world and interacting with our virtual avatars, thus thinning the lines between real-world and virtual.
Also, Decentraland has moved a step ahead by marking its presence on Polygon Layer, which will improve the scalability and lower transaction costs on its platform.
So, that’s a very sci-fi movie type of thing about Decentraland. If you are excited about Metaverse and Decentraland, you can Download the CoinSwitch Kuber App and start your investment journey at ₹100.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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