3 reasons why the MANA and SAND metaverse token rally could end soon By Cointelegraph

0

© Reuters

The metaverse hype that began in 2021 dissolved almost entirely by the end of 2022 as the top projects in the space, Decentraland and The Sandbox, lost 95% of their market capitalization. The most prominent reason for the fall was a lack of user growth.

Still, the metaverse narrative is far from dead and will grow in the future. Reportedly, Apple (NASDAQ:) will launch its virtual reality gear sometime in spring 2023. The announcement was a positive catalyst for Decentraland’s MANA and The Sandbox’s SAND, causing a double-digit price surge.

The Apple pump-and-dump

Poor usage data hinders the reality of a sustained metaverse token rally

The Sandbox unique wallet addresses interacting with a decentralized application’s smart contracts. Source: DappRadar
Decentraland unique wallet addresses interacting with a decentralized application’s smart contracts. Source: DappRadar

Token dilution risks remain

daily price chart. Source: TradingView
daily price chart. Source: TradingView