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There are a wide range of “trendy” crypto investments that skyrocketed last year. From meme tokens to conventional large-cap digital currencies, the market was on fire. Additionally, metaverse cryptocurrencies picked up some real steam heading into the end of 2021, seeing parabolic moves, in many cases.
However, 2022 has not been so friendly to these metaverse tokens. Let’s dive into whether this situation will change for two top metaverse cryptocurrencies this year.
Top metaverse cryptocurrencies: Axie Infinity
The 40th largest cryptocurrency by market capitalization is Axie Infinity (CRYPTO:AXS). This metaverse cryptocurrency is one that has taken the market by storm in 2021.
This momentum has since waned, with Axie Infinity now trading more than 65% below its high set last year. A broad de-risking of investor portfolios, coupled with little strength in the NFT prices of Axies, has driven this decline.
That said, for those thinking long term about how the metaverse is likely to evolve, this is an interesting speculative project. Axie Infinity is a play-to-earn game, meaning players can earn rewards in the form of NFTs for simply playing. This model has become ultra-popular in low-income regions of the world. Should activity once again spike, the ASX token could see its day in the sun
Accordingly, Axie Infinity is a unique project with a unique risk/reward tradeoff for investors to consider.
Decentraland
Perhaps a more “stable” metaverse cryptocurrency, Decentraland (CRYPTO:MANA) is the original virtual world. Decentraland’s focus is on providing a 3D virtual reality platform, where users can engage in a range of experiences. Virtual structures can be developed, such as concert halls, theme parks, and casinos. And artists or others looking to make a dollar can do so via offering services in this metaverse, or rebuilding one’s digital property in this space.
Decentraland’s property values continue to be the main focus of many investors. As interest grows in the metaverse, Decentraland’s LAND tokens gain value. Like other metaverse cryptocurrencies, MANA and LAND are a function of this interest. Of late, that interest has waned somewhat, with MANA down more than 50% from its peak as well.
However, those bullish on the role digital real estate could have in the future may like this project. Decentraland’s impressive digital real estate ecosystem, which improves the economic outlook for many trailblazing artists, is noteworthy.
Like Axie Infinity, this token isn’t without risk. However, those who view metaverse cryptocurrencies as a sign of the future may want to look at both these projects right now.
The post 2 Top Metaverse Cryptocurrencies to Pick Up on This Dip appeared first on The Motley Fool Canada.
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More reading
- 2 Metaverse Cryptocurrencies That Could Soar This Year
- Are These Metaverse-Related Cryptocurrency Tokens a Good Long-Term Bet?
- Can Metaverse Tokens Soar Again in 2022?
- Are Metaverse Cryptocurrencies the Place to Invest Right Now?
- Crypto Rebound: 3 Top Cryptocurrencies to Buy That Gained Over 10% in the Last Week
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
