The crypto market took a hit after it became clear that the Fed is most likely going to raise the interest rate in 2022 multiple times. Despite the fact that this has dampened the outlook of many analysts there is still a lot of movement in the market. Non-fungible tokens are on the frontline creating growth and there is another sector in the crypto space that is closely connected to NFT technology.
The metaverse might become the next booming market and the most part of it is tokenized through NFTs. No matter if you like to buy digital property a space ship or a brand-new avatar for your favorite game, a lot of the upcoming metaverse projects will drive the crypto adoption a little bit further.
The Sandbox is driven by partnerships
The Sandbox has already turned some heads in 2021 when Adidas announced that the company is entering the metaverse in a partnership. Ever since the community kept growing and a thriving market for in-game NFTs pays testimony to that fact. With the “Metaflower Super Mega Yacht” selling for 150 Ether in November 2021 and Snoop Dogg creating the “Snoopverse”, the Sandbox became truly a game-changer.
But those were only the headlines of the past. There are three key features that could drive even more growth in 2022:
- VOXEDIT: A 3D modeling package that allows users to build their own items
- Marketplace: This application allows users to trade their own creations
- Game Maker: Allows users to place in-game assets on their own land plots
With a limited supply of land plots and unlimited options to shape the virtual reality, it is easy to see why the Sandbox became so successful and the SAND token one of the most expensive crypto assets related to the metaverse.
It remains to be seen if Sandbox manages to attract more users creating more demand for SAND.
MANA powers Decentraland
Decentraland is very similar to the Sandbox but driven by different tokenomics. While MANA is the token that powers Decentraland there is in fact a second token that plays an important role. Users can buy LAND for MANA at a rate of 1:1000. The purchase of LAND also burns MANA.
Therefore, Decentralands fundamental economy is driven by the scarcity of available parcels of land and two tokens that are needed to participate in this market.
With the Digital Currency Group and Jamestown looking forward to building a digital version of Time Square and Samsung entering the metaverse, Decentraland is competing for the most exciting virtual reality experience for its visitors. Users building the world of Decentraland can hope to create serious income by offering entertainment or services.
With the prices for land exploding and more global players entering the market, Decentraland has a chance to play a more important role in the coming years.
Axie Infinity was the most successful game in 2021
Have you bought an Axie yet? If not, then you might be interested because you need those cute-looking beasts to participate in this play-to-earn game. The game is based on two tokens which creates a similarity to Decentraland. Players are rewarded with AXS and SLP tokens when they reach certain achievements in the game.
Each Axie is an NFT that is owned by the player and the game offers several highlights:
- Breeding: Your Axies can breed offspring and the strength and weaknesses of each new Axie is determined by its parents
- Land: Axies need a home which creates a market for digital property
- Marketplace: Trade the NFTs that you’ve earned or bought in the game
- Battle: Enter the arena with your Axies and fight other players
Axie Infinity became one of the highest-earning protocols in summer 2021. The combination of rewarding players and creating income through gaming is an innovation that could drive the success story of Axie Infinity further in 2022.
The user base will be the most important factor
The bull market last year was driven by a tremendous growth in price and a lot of hype. In fact, many altcoins outperformed Bitcoin in terms of price development even without a clear direction on how to reach their respective goals. With the rally exhausting in November 2021, it is safe to say that the hype is over.
But that does not necessarily mean that there is no more room for growth. What crypto projects need is a shift towards the growth in user base. This is especially important for all cryptos related to the metaverse. The more users the more it helps to establish a tokenized ecosystem that is creating wealth for the parties involved.
The metaverse can create that growth because it is not related to the financial world, but to gaming and social interaction. It is less dependent on the Fed or any regulatory issues. All it needs for every single project is to spark a sense of community within the user base.