Top Metaverse Tokens, Decentraland, Alien Worlds & Enjin Price Dip | Are NFT GameFi Crypto Projects Good Investments 2022 ?

1 min read

Cryptocurrencies are only as valuable as their utilities. It is no surprise that NFT metaverse based cryptos are gaining popularity in 2022. These tokens have entire ecosystems built around them. Decentraland, Alien Worlds and Enjin have revolutionized the Defi and industries and made Gamefi tokens a valuable investment. Even during the crypto crash, the crypto gaming industry has been growing steadily.  Late Friday and early Saturday morning have been volatile times for crypto investors in the past two weeks. The price action of various cryptocurrencies related to the metaverse was also affected by this sell-off this week. Popular metaverse coins Decentraland (MANA -11.05%), Alien Worlds (TLM), and Enjin Coin (ENJ -12.16%) all saw declines of 10.5% or more at their 24-hour lows this morning.

“Buy The Dip” Opportunity as MANA, TLM & ENJ Coin Drop in Value

Almost all of these tokens have recovered their losses since this early morning decline. Decentraland is currently up around 2.3% at 12:15 p.m. ET, while Alien Worlds and Enjin Coin are about flat over the past 24 hours. Therefore, there is certainly a case to be made that sentiment among various metaverse tokens remains high. Investors keep an eye on the metaverse, as it is a fast-moving space. As of now, these periodic plunges appear to be “buy the dip” opportunities for aggressive investors.

However, each of these tokens are still well below their 52-week highs. From their yearly peaks, Decentraland, Alien Worlds, and Enjin Coin have seen declines of 42 percent, 96 percent, and 48 percent, respectively. Despite their dramatic nature, these tokens have been known to go parabolic from time to time, with longer intervals of declines separating out larger movements. Several reasons for this decline have been attributed to high-profile expert discussions surrounding the real-world utility created by blockchain-related metaverse projects. The valuation metrics investors currently use to evaluate these tokens have some fundamental investors looking elsewhere for growth in the crypto world. It is possible for cryptocurrencies to become overvalued as investors place too much value on future earnings, or value created, by tokens.

Are Blockchain Related Metaverse Projects Overvalued?

The extent to which metaverse-related cryptocurrencies are fairly valued or not is rather difficult to determine. The metaverse presents a once-in-a-lifetime opportunity for growth, and these platforms enable access to it early. It is also possible that this space will turn out to be a flop, with the valuations given to these tokens being viewed in hindsight as absurd. Currently, both sides of the argument are valid. As a result, the volatility we’ve seen with metaverse cryptos is likely to continue for some time to come as price discovery takes place.

Via This Site