The pseudonymous host of crypto outlet Coin Bureau is sharing price analysis on altcoin MANA, the native token of virtual gaming world Decentraland.
In a new video, the analyst known as Guy tells his 1.81 million YouTube subscribers why MANA is holding firm despite what he calls “an unsustainable rally” after Facebook’s recent Meta rebranding announcement sent many metaverse-related cryptos soaring.
The analyst lays out several key factors as to why the token is maintaining price strength.
“First, the rest of the crypto market continues to rally. Most importantly, Bitcoin dominance has been on the decline, meaning money is moving into altcoins such as MANA.
The amount of money being held in Decentraland’s Grayscale Trust has more than doubled… since March [of] this year. This suggests there is significant institutional demand for Decentraland.”
The analyst also highlights trading of non-fungible tokens (NFTs), virtual events, and the game’s decentralized gambling casinos as sources of the project’s strength.
According to the project website, Decentraland is “the first-ever virtual world owned by its users.”
“Decentraland is controlled via the DAO [decentralized autonomous organization], which owns the most important smart contracts and assets of Decentraland – the LAND Contract, the Estates Contract, Wearables, Content Servers and the Marketplace.”
Guy next dives into Decentraland’s proposed idea of achieving interoperability with other metaverses, which he calls “a game changer.”
“[It] seeks to make Decentraland’s metaverse interoperable with at least four other crypto metaverse worlds. This will be done using an advanced protocol called IPSME [Idempotent Publish/Subscribe Messaging Environment].
No dates have been detailed for this particular proposal, but it will be a game changer for metaverse cryptocurrencies if it delivers on its promises.”
Guy wraps up by discussing how his initial doubts toward the project have softened over time.
“When I first heard of Decentraland, I remember being skeptical if it would get any traction. After all, who needs a virtual world when you have the real world?
As time goes on though, it’s becoming clear that there is value in both. This was evident long before Facebook rebranded to Meta, and it’s something that nobody really noticed until Facebook put the metaverse on stage.
The crazy thing is that Decentraland is still in its infancy, even though it’s one of the oldest metaverse projects out there. It’s amazing to see that development continues, despite all the problems the project has experienced publicly and behind the scenes.
It’s certainly headed in the right direction, and even though MANA might be overvalued relative to Decentraland’s fundamentals today, this probably won’t be the case tomorrow.”
MANA is currently trading at $3.20, up 23% on the day but down from the all-time high (ATH) of $4.91 it achieved on October 30th.
ICheck Price Action
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/solarseven/Dario Lo Presti/Andy Chipus