- 2 Mar, 23
Decentraland (MANA) 101: The Ultimate Guide to the Metaverse
The emergence of blockchain technology, cryptocurrencies, and NFTs has created many new opportunities for investors. One such opportunity was the creation of virtual worlds called “Metaverse.” In today’s Metaverses, people can buy collectibles and experience a new reality through their avatars. They can even invest in these worlds by buying land.
Decentraland (MANA) embodies all these features and is currently quite popular among the crypto community. Many investors hold MANA coins in their portfolios and believe in the project. The success is due to the project’s ability to combine many blockchain features into a single platform. So, what exactly is Decentraland? What are the future analyst predictions for MANA coin? This article by Zatrun.com offers a look for investors interested in the project.
Table of Contents
What is Decentraland (MANA)?
Decentraland (MANA) is a 3D virtual reality platform that allows users to explore and interact with other users in a virtual world. The Metaverse was created in 2015 by Esteban Ordano and Ari Meilich and was opened to individual investors in 2017. In the few years since its release, it has become one of the most popular projects in the crypto ecosystem.
Decentraland wasn’t the first virtual reality platform in the market, but it had a unique component: Decentralisation. Decentralisation means that a project is not managed by any CEO, company, etc., but rather management is left to the users. Decentraland is built on the Ethereum blockchain, and transactions are entirely automated through Ethereum’s smart contracts. Through smart contracts, the community determines governance processes like policy changes on the platform via their own votes.
How Does Decentraland Work?
Like other Metaverse platforms, Decentraland also uses technologies like blockchain and cryptocurrency. Currently, the platform maintains the sustainability of its ecosystem with two different digital assets: MANA and LAND. MANA is the native cryptocurrency of the platform and serves as an exchange tool for its holders. LAND, on the other hand, are unique parcels of land that exist in the Metaverse as NFTs.
The platform uses Ethereum’s smart contracts for the ownership of LANDs. After purchasing a parcel of land in the ecosystem, users are free to do anything with it. For instance, they can use it to build a house, stage, or marketplace. Within the universe, users can also interact with other users’ LANDs. At this point, the MANA coin is used as a payment tool for trading. The cryptocurrency had its ICO in 2017.
The cheapest parcel among Decentraland land prices is worth 4,500 MANA (1,800 dollars). Land prices are influenced by developments in the cryptocurrency market and on the platform, so it’s possible that prices will rise or fall in the future. If you’re interested in purchasing LAND, you can access the project’s NFT marketplace.
Is MANA a Good Investment?
Currently, there are approximately 1.85 billion MANA coins in circulation, and the project has a market capitalization of $1.18 billion. It’s worth noting that the maximum supply of the cryptocurrency is 2.19 billion. Once Decentraland reaches this point, it will have a fully diluted market capitalization of approximately $1.89 billion. The project has received investments from many large companies, including Samsung, so it’s important for investors to keep up with developments related to the project.
However, Decentraland also has competitors. The Sandbox and Axie Infinity are among the project’s biggest rivals. Nevertheless, the platform aims to surpass its competitors with its completely decentralised management and important level of security. Decentralisation makes it much more difficult to hack the ecosystem. Despite these advantages, there are still some things to watch out for regarding the future of MANA coin.
There is no one answer to whether Decentraland is a good investment or not. To determine whether it is a good investment for you, you should consider your financial situation, risk tolerance, goals, and other factors. Additionally, you should be aware that this is a highly speculative investment, particularly in the current crypto winter. Crypto assets are subject to extremely volatile price movements.
According to CoinMarketCap, one MANA coin is currently trading at $0.63. The asset has lost a significant amount of value from its all-time high of $5.48. However, the social media trend that drove the price of the cryptocurrency higher in the past appears to have fizzled out. Nevertheless, the end of the current bear market could change everything. If this happens, the cryptocurrency could start to rise in price along with other altcoin assets.