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Metaverse tokens are not massively different to other cryptocurrencies and tokens, but they are attached to the same industry. They function in different ways with some, like Axie Infinity, working as a web-based game whereby you can buy creatures to fight and earn from. There are several other Metaverse tokens which are also making headlines. Express.co.uk speaks to experts about how Metaverse tokens work and whether they will truly kill off the world’s second-largest crypto coin.
What are Metaverse tokens?
Metaverse tokens are a unit of virtual currency used to make digital transactions within the metaverse.
Metaverses are sprawling universes that users can access via a computer or virtual reality headset.
These platforms allow you to work and play in a fictional, digital realm.
Metaverse tokens include:
- The Sandbox (SAND): Current price: $2.45, -3.03 percent in the past 24 hours and -10.03 percent in the past seven days.
- Axie Infinity (AXS): Current price: $152.70, -0.57 percent in the past 24 hours and +9.66 percent in the past seven days.
- Decentraland (MANA): Current price: $2.60, -4.36 percent in the past 24 hours and -17.15 percent in the past seven days.
- Star Atlas (ATLAS): Current price: $0.183, -0.92 percent in the past 24 hours.
- Enjin Coin (ENJ): Current price: $3.08, -3.64 percent in the past 24 hours and +2.18 percent in the past seven days.
Analysts believe these tokens are the “next millionaire makers” because they believe these tokens could make even larger gains.
Lead analyst at Bitcoinmoney.net Nigel Frith told Express.co.uk these tokens “are just getting started in the cryptocurrency market”.
Some experts say the prospects for these coins are valuable – with it almost guaranteed they will make people a lot of money.
Katharine Wooller, UK managing director at crypto wealth platform, Dacxi told Express.co.uk: “Any global cryptocurrency promoted as ‘the next big thing’ by tech giants like Facebook will be hard to stop.
“But initially, they are more likely to make tech millionaires into tech billionaires than turn DIY investors into millionaires.”
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Why have these tokens been classed as “Ethereum killers”?
These coins have been dubbed “Ethereum killers” as they are faster and cheaper than the world’s second-largest cryptocurrency.
The coins and other rival projects have been growing in value at a much faster rate than Ethereum has and is likely to according to the experts.
Mr Frith told Express.co.uk: “These gains are driven by market traction and increasing adoption rates and are helping to push these tokens into the spotlight.”
The crypto expert however said it is important to remember these projects grow faster than Ethereum because they are much smaller in terms of market capitalisation and adoption rates.
The metaverse space is relatively small but there is huge room for growth and new start-ups according to the experts.
Josh Sandhu, co-founder and spokesman for European NFT advisory business Quantus told Express.co.uk: “Metaverse tokens can also be more attractive to investors because they have a much smaller market cap, meaning that they have the potential to five or 10 times their values far quicker than Ethereum.
“Of course, that’s one aspect, the other is whether the project and development team are hitting targets and their respective blockchains are improving.”
He added it is “absolutely” likely some will become the “next millionaire makers” as lots of developers are proposing new solutions to a variety of blockchain problems.
The climate impact is another key area of consideration when it comes to cryptocurrencies and metaverse coins.
Mr Sandhu added: “The long and short of it is that the more established metaverse projects have a lot of room for growth, and those currently in development are entering a market still very much in its infancy.”
Ethereum is unlikely to be killed off by these projects, however, the expert concluded.
Mr Frith added: “In fact, there are many metaverse projects built on top of the Ethereum blockchain so Ethereum will actually benefit from their growth.”
Cryptocurrencies and metaverse coins are difficult to assess, quantify and qualify, Ms Wooller said.
She told Express.co.uk: “It’s difficult to assess the value of metaverse tokens because it’s difficult to quantify and qualify just where the metaverse begins and ends and what utility they might have in terms of wider global economies.
“For the time being the utility of metaverse tokens mostly resides within the gaming and virtual experience space – if they remain here, their value will stay largely within the entertainment and social networks.”
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