Metaverse’s hype has dropped dramatically over the past 2 months due to the market crashes. Obviously, platforms like Decentraland are not “immune” to this downtrend.
Is MANA in trouble?
While this crash didn’t have as much of an impact on MANA as the one in May, which wiped out 57,4% of its value, the altcoin is still down 22,8%. From May, MANA had significantly recovered the amount of the crash within the next 48 hours.
However, as the lack of confidence among investors rises, the price has gradually declined again and is currently trading at $0,82 (at press time).
This is the first time MANA has witnessed confidence shaken among its investors after a long time, showing that long-term holders (LHT) are panicking and moving to other coins. They ended up destroying 17.79 billion days.
A similar case happened last year in October when LTH wiped out 45 billion days.
However, it should be noted that last time, this reaction was due to FOMO panic and not included loss panic, as MANA rebounded by 375% in a 3-day period.
This is verified by the transactions conducted in these two instances.
Back in October 2021, most of the transactions were profitable, with volumes reaching as high as $670 million, while in this time, the transactions have primarily been in losses, albeit with a much lower volume of $88 million.
Moreover, Metaverse’s sign of pulling back in value is becoming clearer. The cost of a piece of land in Decentraland in February was $6,170, while as of this month the average cost was only $3,420.
This is the lowest average cost Decentraland has since its launch in 2020.
As such, MANA price is also dependent on broad market signals such as Metaverse rallying in the future to reclaim $1 in value and have further increased.
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