By Shelly Melancon (Switzerland)
Facebook announced yesterday a decision to rebrand itself to Meta which shows that they plan to create an avatar-filled metaverse. This announcement by Facebook generated a lot of speculations which resulted in a rally in cryptos which belong in similar virtual world projects.
An example of such virtual projects includes Decentraland which is a virtual world with unique MANA currency, economy, and special events. Decentraland can be accessed with a web browser by anyone.
The market value of the virtual world surged from $1.44 billion to $2.08 billion within the last 24 hours while MANA, its native token, rose in value by over 45% within the last 24 hours. The market price of MANA continues its rise today as it reaches $1.227 which is its highest level within the last 5 months.
Surge in Market Capitalization of Decentraland, Axie Infinity and others
There was a rush to join the Decentraland market by traders following the entrance of Facebook into the virtual world sector. Mark Zuckerberg, CEO of Facebook, stated that the company will henceforth be metaverse first rather than Facebook first following the recent rebounding.
Emil Angervall, co-founder and COO of Corite, stated that Meta is a great development for the NFT space. Angervail believes that Meta is a highly liquid venture which would have to work with NFT projects already operating in the space. He believes this will help bring the crypto sector into the mainstream. Also, he expects that innovations in NFT and metaverse that are specific to Meta will be developed soon.
Axie Infinity was another market that traders rushed to invest in after the announcement that Facebook will be rebranding to Meta. Axie Infinity is a virtual world where players can play to earn tokens. Within the last 24 hours, the market value of Axie Infinity rose by about 10% to $8.40 billion.
Axie Infinity Shard (AXS) is the native Token of Axie Infinity where it is used as a legal tender as players can buy NFTs using AXS. The price of AXS also rose by about 20% to reach $150 within the last 24 hours.
Metaverse Projects Benefits From Meta
Several other metaverse projects also rose in value with a rise in the price of their native tokens including Sandbox (SAND), Illuvium (ILV), Division Network (DVI) etc. Hence there was a surge in the price of digital assets of virtual worlds following the Facebook announcement.
The total market capitalization of metaverse tokens grew by over 13% over the last 24 hours. Mike Dickens, operations manager of Blockasset, was not surprised by the growth in these tokens as he believes that the Meta name adopted is alluding to the great work being done by NFT protocols in the past few years.
Greg Waisman, co-founder and COO of Mercuryo, believes that there will be a correction in the price of the multiverse crypto assets despite the recent surge in price. Hence, he thinks traders should wait for the correction and invest only after the market has cooled off from the price surge. He believes that Meta will help increase the market valuation of the virtual world in the coming quarters.
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