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3 reasons why the MANA and SAND metaverse token rally could end soon

Published 01/24/2023, 12:30 PM
Updated 01/24/2023, 02:20 PM
© Reuters
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The metaverse hype that began in 2021 dissolved almost entirely by the end of 2022 as the top projects in the space, Decentraland and The Sandbox, lost 95% of their market capitalization. The most prominent reason for the fall was a lack of user growth.

Still, the metaverse narrative is far from dead and will grow in the future. Reportedly, Apple (NASDAQ:AAPL) will launch its virtual reality gear sometime in spring 2023. The announcement was a positive catalyst for Decentraland’s MANA and The Sandbox’s SAND, causing a double-digit price surge.

The Apple pump-and-dump

Poor usage data hinders the reality of a sustained metaverse token rally

The Sandbox unique wallet addresses interacting with a decentralized application’s smart contracts. Source: DappRadar
Decentraland unique wallet addresses interacting with a decentralized application’s smart contracts. Source: DappRadar

Token dilution risks remain

MANA/USD daily price chart. Source: TradingView
SAND/USD daily price chart. Source: TradingView

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