The metaverse fever in AXS, MANA, ENJ, SAND still shows no signs of cooling
Violent price explosions within hours of a coin being brought to the moon are nothing new in the crypto world. Over the past week, Metaverse tokens have enjoyed a hype and a lot of attention on social media as media giant Facebook announced a rebranding to “Meta” as Bitcoin magazine reported.
When the meta craze hit the market, MANA led the race for profits, followed by SAND, ENJ and finally gaming giant Axie Infinity (AXS).
As with any other hype phenomenon, of course, when the meta-hype gains momentum, traders and investors will try to get into the race. However, given that most of the above altcoins are already at ATH price, what is the right strategy for the future and where will the Metaverse token go?
High ROI drives retail FOMO
Aside from the recent social attention, another commonality between Decentraland’s native MANA token and Enjin Coin (ENJ) and Sandbox (SAND) is the huge gains.
Source: trade view
The announcement of Facebook’s meta-rebranding became the driving force behind the rise of the coin as others like Nike and Microsoft also jumped on the metaverse hype. As a result, these tokens achieve great performance.
Following the October 28 announcement, Decentraland and Sandbox native tokens saw incredible returns. While MANA delivers a weekly return of 302%, SAND delivers 174% to owners. In addition, ENJ has a weekly ROI of almost 50% and AXS is last in the ROI race with a 10% return.
Weekly Returns on the Largest Metaverse Tokens by Capitalization | The source: Arcane research
The positive movements of these altcoins are also supported by the large retail FOMO, which is evident in the high trading volumes. MANA, SAND and ENJ have increased trading volume significantly, which shows that participants are pouring the hype. So it looks like institutional interest along with retail FOMO has driven the boat.
While price soared for the shorter time frame at the time of writing, MANA, ENJ and SAND all moved sideways. On the flip side, AXS has been consolidating since early October and bouncing back after the announcement, but remained largely without big strides.
However, despite the cooled hype and the consolidation of the coins, they could still be a worthy addition to your portfolio.
Notably, most of these coins have seen large outflows from exchanges, meaning that HODLers prefer to keep assets off-exchange in cold wallets – often in favor of price. In addition, the number of active addresses is reduced, but still above average.
Number of active addresses | The source: Sanbase
As can be seen above, the number of active addresses for MANA and SAND decreased significantly, while ENJ remained higher. On the other hand, this indicator from AXS underperformed.
However, this is not the end of the metaverse hype. In fact, what’s going on resembles the NFT boom, where many altcoins rebounded along with the non-fungible token craze. A further expansion of the Metaverse story will therefore continue to benefit the token. But it is best to do your own research before you start participating.
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According to AMBCrypto