INTRODUCTION
"Decentraland is a decentralized virtual reality platform powered by the Ethereum blockchain. Within the Decentraland platform, users can create, experience, and monetize their content and applications". [Decentraland. Introduction. (Accessed November 17, 2021)]. Inside Decentraland's digital world, you can experience, create and play within a shared virtual reality. The Decentraland platform allows one to own, build, sell, explore and live virtually in a decentralized environment.
Decentraland is now mentioned often as there is heightened interest in development of the metaverse. But the question to be answered in this subsection of the Leo Finance Decentraland Coin Guide is whether or not Decentraland is a potential investment worthy of your consideration.
FACTORS IN FAVOR OF INVESTING IN DECENTRALAND (MANA)
- Decentraland is one of the few cryptocurrency projects that exhibits real use cases:
- Users may create applications and three dimensional scenes using the protocols own scripting language.
- Decentraland makes money through advertising.
- Users experience the aspect of ownership by virtue of the use of NFTs.
- Communities on the platform are making social connections giving rise to relationships which build value as trading within the community develops.
- Decentraland's protocol runs on Aragon which is a DAO software capable of connecting to Ethereum's smart contracts.
- As a rule, the higher the market capitalization of a cryptocurrency the more stable the currency is likely to be. That being said, Decentraland has a high market capitalization of $5,962,501,668 as of the time of the writing of this article [per CoinMarketCap].
- LAND which is an ERC-721 token used in Decentraland is capped at 97,100 parcels. Being finite, as more land is sold scarcity drives up value, which in turn drives up the value of the MANA tokens.
- Major large investors are acquiring large parcels of LAND for significant commercial and entertainment enterprises.
- With the price of Decentraland MANA being $3.28/token, there is a low entry point to engage and/or simply invest in Decentraland. An investment of $1,000 would bring you around 305 MANA tokens. Not an insignificant amount at all.
- The MANA token had a trading volume of $3,750,574,778 over the past 24 hours demonstrating that a fairly liquid market exists for the trading of the Decentraland MANA token.
- The Decentraland MANA token is listed on multiple established, safe, and reliable exchanges.
- Within the Decentraland environment, a user is free to invest in any available thing seen. This freedom to do what you will within the protocol adds to its interest and provides value by attracting new community members.
- Argentinean developers Estaban Ordano and Ariel Meilich, Decentraland's main developers are both experienced entrepreneurs and developers, exhibiting great experience, exemplary skills, and overwhelming drive toward driving growth within the Decentraland protocol.
- The project exhibits an impressive business model:
- working with the multi-billion dollar gaming industry, various enterprises are currently developing innovative games to be added to the platform adding significant value to the project.
- by permitting LAND owners to develop and operate businesses for profit will grow the community economy within the platform. This translates into an upward driving force for both the MANA and LAND tokens.
- Users of Decentraland have complete control and ownership of their platform assets and as well have power in deciding what happens on the platform. This decentralization has created investor confidence leading to the expectation that the confidence will cause more investors to enter the platform. Knowledge that they can keep all of the proceeds of the sale of Decentraland assets is key.
- The project has a strong presence on social media by dedicated community members. As this social media community grows so too will the hype surrounding Decentraland growing its value.
- Decentraland is supported by strong backers such as Bitcoin Suisse, Digital Currency Group, and Barry Silbert among others. It is worthy to note that the developers have likewise invested $5,000,000 in the project demonstrating their faith in the project.
FACTORS AGAINST INVESTING IN DECENTRALAND (MANA)
- Although created in 2017, Decentraland (MANA) was not released to the public until February, 2020. As such the project is relatively new to the cryptosphere.
- MANA being a cryptocurrency is a member of a highly volatile class of investable assets.
- Millions of potential users will not engage due to their lack of understanding of what NFTs are, their purpose, and the substance they bring to decentralized finance on the whole.
- Decentraland is feeling the effects of strong competition in the NFT space. Competitors include: Axie Infinity (AXS), The Sandbox (SAND), Enjin Coin (ENJ), Chiliz (CHZ), Wax (WAXP), Dego Finance (DEGO), Aavegotchi (GHST), and Rarible (RARI) to name a few.
TOKENOMICS
Per CoinMarketCap, at the time of the writing of this article (November 17, 2021 at 08:40 EDT) there is a circulating supply of 1,816,917,791 MANA. With the current price of $3.28 the market capitalization of Decentraland (MANA) is $5,962,501,668. There is a total supply of 2,193,998,027 coins authorized yielding a fully diluted market capitalization of $7,331,295,750. Presently, Decentraland (MANA) is ranked No. 37 by CoinMarketCap.
DECENTRALAND (MANA) RELEVANT PRICE HISTORY
The price results for MANA for the calendar year 2021 to date are shockingly remarkable. On January 1, 2021 the MANA token commanded a price of $0.08. But from January 1 through November 4, 2021, MANA has returned 3,340.59%. MANA reached an all-time high of $4.69 on 30th October 2021 and currently is trading off the ATH at $3.28.
A review of the Decentraland (MANA) price chart for the entire history of the project demonstrates the meteoric rise in price from January 1 through October 30, 2021 . However, thereafter, the chart demonstrates consolidation following the ATH and in general the chart demonstrates a high degree of volatility especially when taking into account external market forces and periods of unrelated project market volatility:
DECENTRALAND (MANA) REASONABLE PRICE PREDICTIONS
- CoinPriceForecast has provided its price predictions for MANA for the years 2021 through 2033 in chart format as follows:
- WalletInvestor has provided a very nice graph demonstrating its price projections for Mana for the remainder of 2021 and 2022 as follows:
- And finally, PricePrediction.net provides a table with it's MANA price predictions for 2021 through 2030, as follows:
Please keep in mind that while these price predictions paint a rosy future for Decentraland (MANA) as an investment, they are just that - predictions. No one has a crystal ball that can predict and guarantee future price performance and potential returns. As such, as a potential investor, you may take the prediction for what it is, as the same is no guarantee of future price performance of Decentraland (MANA) due to the volatility of the cryptocurrency markets.
CONCLUSION
This subsection has provided you, the potential investor in Decentraland (MANA), with the key elements to consider in reaching a final decision on this token. In reaching a final investment decision many differing opinions should be sought out. Reliance on one source is highly discouraged.
Please remember, this subsection of the Leo Finance Decentraland (MANA) Coin Guide is merely a starting point and should not be deemed a substitute for doing your own diligent research.
It is a given that every individual investor possesses a different present financial circumstance, tolerance for risk, and investment strategy. These must be weighed in light of the factors and information above provided in finalizing any investment decision. Accordingly you as the potential investor must make the final investment decision that is appropriate for your individual circumstances and in your best interests.
And as always, never invest more than you can afford to lose. Good luck!