Decentraland was here when I googled “Metaverse” in 2018. It’s my favourite Metaverse project because it’s a demonstration of what such projects should be like: decentralized, functional and based on cryptocurrencies. I’ve been talking to users in Brazil while playing and considered buying lands I was dancing on. I’ve also been following the evolution of the different parts of the map along the years. Now, should you invest? Let’s dive in.
1. What is Decentraland?
Decentraland is a distributed reality web3 project, that you can play in a web browser. The game offers an ecosystem of NFTs (virtual lands or other collectibles) that you can trade or use.
Or buy lands and collectibles on their marketplace here:
2. How does it compare to other Metaverse projects?
First of all, Decentraland is TRULY decentralised, unlike projects like The Sandbox (that I’ve analyzed here) running on an AWS server:
This bings credibility to the project and make it sound resilient.
Then the vesting schedule is smoother than other metaverses (Sandbox, Pavia) with a slow release of tokens on 6 years:
Decentraland is also scarcer than most Metaverse projects:
–The Sandbox consists of 166,000 plots of land which can be grouped into estates.
–Pavia, the main meta verse project on Cardano, has 100000 lands.
-Decentraland has 90,601 parcels of land and they can be purchased in the Decentraland marketplace.
3. The MANA token as an investment
The MANA token is behaving very well in the middle of a bear market:
Volumes are nice too, which is a good point. The floor prices for the lands have also been in the 3-4 ETH range for months:
Let’s face it, the market cap is already big, 4 billion USD:
It makes it a moderate risk investment with some moderate upside potential. Companies (HSBC, JPMorgan, Samsung) are investing in it, potentially bringing a lot of other companies to the space as part of their advertisement budget:
You know what the global advertisement market cap is?
I know. I’ve googled it:
I will assume that those $647 billion USD market will be eaten by 3 major Metaverse platforms equally. And that web3 advertisement will get 10% of the global investment cake by 2024 (next Bitcoin halving, historically an investment-flowing moment). It means that the market cap of Decentraland could reach 21 billion USD by 2024-2025, which would give a 5x ROI in 2-3 years and a price of the token at around $12.
I’m bullish on Decentraland because of its level of decentralisation but also because it’s THE Metaverse project out there.
The level of scarcity is above other projects and the volumes maintain themselves in a bear market showing the power of the product. Companies are diving in and my price prediction is $12 by 2024-2025.
Thanks for reading.
Disclaimer: this is not financial advice