Best Metaverse Coins to Buy and Hold in 2022
The metaverse is one of the fastest-growing industries in the world. Indeed, many analysts believe that it is the future of how people interact with each other. Why buy a physical piece of land when you can buy a digital version? In this article, we will look at what the metaverse is and some of the best metaverse coins to buy and hold in 2022.
What is the metaverse?
The metaverse is a technology that enables people to interact with each other in a digital environment. It is a wide-ranging industry with many applications. For example, instead of using Zoom Video for meetings, companies can easily set up online meetings in a virtual space.
Similarly, instead of an American musician traveling to Europe for a concert, they can hold it virtually to an audience in the metaverse. Indeed, musicians like Justin Bieber are now making money by holding concerts virtually.
The blockchain industry has enabled the creation of a metaverse industry that is generating millions in sales every month.
To be clear, it is still early in the industry, and we believe that there will be bumps along the way. These bumps have existed all the time in emerging industries. For example, many internet companies collapsed during the dot com bubble. Also, many companies have struggled in their bid to compete with Tesla on electric cars. So, let us look at some of the best metaverse coins to invest in.
My Neighbor Alice
My Neighbor Alice is a relatively small and fast-growing blockchain company in the metaverse space. Like most platforms, it is at the intersection of gaming and the non-fungible token (NFT) industry.
The platform is a multi-player platform that allows people to buy a virtual island and build them from scratch. You can build your virtual home on this island and meet with new people. At the same time, users of this platform can create products and trade them in the virtual world. Players are represented with their own avatars in the network.
All transactions in the My Neighbor Alice platform are handled using ALICE. Users must first buy the token, which they can use to handle transactions like buying land and avatars. They can also use the token to use specific Decentralized Finance (DeFi) activities like taking loans and collateralization.
Like other tokens, it is possible to trade the ALICE token in the market. Unlike other popular coins, ALICE has lagged the market. It rose by 662% from the all-time low in June, reaching the all-time high in November 2021. Since then, it has declined by about 55%, bringing its total market capitalization to about $214 million.
While ALICE has struggled, there is a likelihood that its price will bounce back in 2021. Besides, it has an active user base, and there is a possibility that it will keep growing.
Axie Infinity is a blockchain project that became more popular in 2021. It is built upon a relatively simple concept. Indeed, the developers were inspired by the popular game known as Pokemon Go. The concept is that of using blockchain technology to enable people to play games. In these games, winners are compensated using the platform’s native token that is known as AXS.
Inside the platform, there are animated characters that are known as Axies that users can breed and sell in the marketplace.
Still, being a play-to-earn game itself does not qualify Axie Infinity to be a metaverse platform. Besides, many games on centralized platforms like Xbox and PlayStation can easily do that.
In the past few months, developers have been building platforms that will transition Axie from a gaming platform to a full metaverse platform. For example, they are building features that will introduce virtual land that people can buy, equip, and trade in the universe.
The AXS token has been in a bullish trend in 2021. It rose by more than 16,000% between January and November. This trend has pushed the total market cap of the AXS token to over $6 billion. As the industry grows, I expect that the token will do well in 2022.
The Sandbox is one of the fastest-growing metaverse coins in the world. Indeed, the SAND token moved from obscurity into becoming one of the biggest platforms worldwide. The token is now valued at more than $4.6 billion.
The Sandbox is a platform that is at the intersection of the gaming and non-fungible token (NFT) industries. The developers have created a platform that allows people to buy and sell virtual items like land and avatars. The most expensive piece of land in The Sandbox went for about $4.6 million. And today, a quick look at its marketplace shows that products are selling at thousands of dollars (in SAND).
The Sandbox team also carries out several gaming events where users can compete and win events. These events are different from each other and are completely held in the metaverse. Therefore, because of its popularity, I believe that SAND is a good metaverse coin to invest in 2022.
Decentraland is a blockchain project that is similar to The Sandbox. MANA, its token, has risen by more than 4,000% in 2021, bringing its total market capitalization to more than $4 billion.
The platform also enables users to buy a piece of land, develop it, and then possibly sell it in the market. It uses the NFT technology to ensure that transactions are genuine. Decentraland is built using Ethereum’s technology.
Therefore, if the metaverse industry keeps growing, I expect that Decentraland will also do well. Besides, the network is highly popular among users meaning that it has a pole advantage.
The metaverse industry is expected to keep growing in the next few years. Still, I don’t believe that this industry’s growth will be without key challenges. Regardless, some of these coins should be the best performing in 2022. The top risks to watch will be a major sell-off in the industry and the rising interest rates.
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