The Giant Metaverse Tokens: Reasons For The Catastrophic Fall

• Metaverse Tokens are virtual currencies in the metaverse (virtual world). 
• The giant metaverse tokens are MANA (Decentraland), ENJ (Enjin Coin), SAND (Sandbox), and AXS (Axie Infinity). 
• The 92% fall in their market capitalization has been seen since November 2021. 

Metaverse Tokens are used in the metaverse for exchange between users. There are many different tokens and out of them, four are the giant tokens because of their high cumulative market capitalization (cap). These giant tokens are MANA (Decentraland), ENJ (Enjin Coin), SAND (Sandbox), and AXS (Axie Infinity). Since November 2021, a catastrophic fall has been seen in their market capitalization, which, according to some experts, is due to the declining interest of users in the metaverse projects.   

What are Metaverse Tokens?

Metaverse tokens are a form of virtual currency for digital payments in the Metaverse. Some of these currencies are only spent in the metaverse. Metaverse is a virtual reality, a digital world where people can interact virtually, receive digitized products, create and exchange digital assets, and much more. 

The metaverse is powered by decentralized finance (DeFi), in which users can exchange assets in the form of cryptocurrencies and NFTs (Non-Fungible Tokens). It is based on blockchain technology and makes sure that transactions are secure and trustworthy. 

Some of the best Metaverse Coins are SAND (Sandbox), Decentraland (MANA), GALA, AXS (Axie Infinity), and ENJ (Enjin Coin). Out of these, AXS, SAND, ENJ, and MANA are Giant Metaverse Tokens because of their high market capitalization. 

• SAND (Sandbox) 

It is mostly used by players in the virtual gaming world. It is considered a very good play-to-earn model. 

• Decentraland (MANA) 

It helps to buy and sell land in the virtual world. It allows transactions with a lower fee. 

• GALA 

It is used as a token in multiple games powered by the Gala blockchain. 

• AXS (Axie Infinity) 

It is also one of the play-to-earn models where these tokens can be earned by winning games. 

• ENJ (Enjin Coin) 

This enables people to create and manage their own NFTs. 

Why Did They Witness a Catastrophic Fall of 92%?

Since November 2021, the market capitalization (cap) of four giant metaverse tokens-MANA, ENJ, SAND, and AXS-has fallen 92%. In 2021, the metaverse market was progressing due to the cumulative market capitalization of these four metaverse tokens (the cumulative market cap was $16 Billion) but a sharp decline was witnessed in 2023. 

The only reason observed for this fall was the depleting interest of users in metaverse projects. Some experts and creators were saying that this happened because of the turtle pace progress of metaverse projects. 

Conclusion 

The fall (92%) has been observed in the cumulative market capitalization of four metaverse tokens; MANA, ENJ, SAND and AXS. These metaverse projects were the main reason for the popularity of the metaverse because of their collective market cap of $16 Billion in 2021. 

The reason behind this fall is the declining interest of users in metaverse projects, according to experts and creators. The Metaverse sector or these metaverse projects need to increase their progress speed and should provide some interesting and innovative facilities that could grab the attention of users toward the metaverse. 

However, it is the borderline between the real and virtual worlds that gives people access to interact virtually and exchange digital assets in the form of cryptocurrencies and NFTs.