The euphoria for metaverse, which grew amid giant firms entering the space, has fizzled after a correction in the crypto prices due to the broader selloff in the financial markets amid the ongoing Russia-Ukraine crisis and inflation.
Edul Patel, CEO and Co-founder, Mudrex said tokens are going down as investors are still speculating in cryptos, despite high volatility amid the ongoing war scenario.
Poor earnings from Meta, erstwhile known as Facebook, also dampened the sentiments. The notion of a solid future remains intact, but it is nowhere close, said experts. They are, however, hopeful that once clouds of uncertainty subside, tokens will catch up.
Major metaverse tokens such as Decentraland (MANA), The Sandbox (SAND), Enjin Coin (ENJ) and Stacks (STX) have tumbled between 55 and 75 per cent from their recent peaks of one year.
Whereas a few bigshots including Axie Infinity (AXS) and Render Token (RNDR) have eroded about 70 per cent of their value from their one year peak.
Mid-sized metaverse tokens including Theta Network (THETA), Ontology (ONT) and Sushiswap (SUSHI) have plunged about 90 per cent during the period under review.
Jay Hao, CEO of OKX.com said, “Metaverse has a promising future and a wider application in every industry of the world. Its token rally will follow a bull run in the crypto market.”
“As giants like JP Morgan, Samsung have entered the metaverse space, people have started to invest in metaverse tokens. Once the war subsides, the investors will likely start investing in this ecosystem,” Patel added.
However, not everyone is gung ho on the metaverse theme. A few of them believe that the scope in the space is limited and investors will have to wait for a long time to make any real money from the virtual reality play.
Shivam Thakral, CEO of BuyUcoin said that making money from Metaverse might be limited to gaming as there is a lot of selling happening for in-game assets for real money and this has been happening for years.
The scope is limited for retailers but for businesses, it offers a whole new dimension for engaging with the customers, Thakral adds. “Metaverse assets like Decentraland, Sandbox and Axie Infinity can be explored by investors in the long run.”