This past weekend (1/29 – 1/30), the crypto market experienced a small rebound. Notably, metaverse coins such as SAND and MANA have experienced the strongest upward momentum. Currently, it seems that metaverse projects maintain the most potential to truly break out from the crypto market’s macro-bearish trend.
Price Prediction (Short Term)
The previous metaverse bull market was powered by the popularity of virtual land NFTs. As you can see in the chart above, this popularity eventually caused SAND’s price to reach significantly over-extended levels. Subsequently, the asset has now crashed about 70% from its November all-time high to form a new local low.
$2.60 needs to stay as SAND’s bottom for the asset to continue to move within its wide upward channel. The peak of this channel is approximately $8 – $9, while the bottom is $3.
Price Prediction (Long Term)
Going forward, a new bull market for the metaverse can be powered from NFT land development. To understand the price potential for this type of development, I used the website marketcapof to compare SAND to Solana’s market cap. If we assume that a similar amount of capital that was previously allocated to SOL will in the future be allocated to SAND, then this type of funding could cause SAND to reach values of over $30 per token.
Put more simply, if The Sandbox were to reach Solana’s current market cap, then that would place SAND’s token price at approximately $34 / SAND.
Metaverse Corporate Value
As we have seen from events within the past year, there is now demand from large companies such as Facebook, Microsoft, and Warner Music Group – all looking to create a metaverse presence. Each of these companies appear motivated in the short term by the marketing potential of metaverse environments. However, in the long-term, these companies are betting that shared virtual realms accessable through AR / VR will be the technological successor to the mobile internet.
Interestingly, Facebook (META) is expected to unveil its metaverse plans at its earnings call this Wednesday (2/2). The details of this call should reflect as bullish or bearish price movements in metaverse crypto coins.
In the chart above, the red line tracks SAND’s token price, the blue line tracks SAND’s TM token grade, and the green vertical lines track SAND purchases by Token Metrics indices. Observably, Token Metrics indices have been accumulating SAND for the past few days, and its TM grade has increased to 30%.
Mana has also recently been purchased by a Token Metrics index, and its Token Metrics grade has increased to about 35%. Therefore, the Token Metrics AI has been flashing bullish signals for metaverse coins over the past few days.
Summary
Looking beyond the technicals, the main takeaway is that the metaverse and NFT crypto sectors maintain influential value. Largely, this value is due to the profit and growth potential behind interconnected metaverse environments.
Companies, entrepreneurs, and speculators appear willing to allocate significant capital to virtual land developments and NFT purchases. While speculators enjoy trading profile picture NFTs, companies prefer to develop upon virtual real estate or produce their own NFT collections. Interestingly, these motivations have prompted the NFT market begin to decouple from all other markets.
From an investment point of view, this decoupling is what makes the NFT market look uniquely promising.
This metaverse investment concept originated from our Senior Market Analyst Bill Noble. You can watch Bill explain his metaverse thesis here. Along with SAND and MANA analysis, Bill also covered:
- LooksRare (LOOKS)
- Metaverse Index Token (MVI)
- Render (RNDR)
- Illuvium (ILV)
- Cube (CUBE)
- Wilder World (WILD)
- Enjin (ENJ)
- Vulcan Forged (PYR)
- Flow (FLOW)
