Blockchain has been one of the most talked-about technologies of the last ten years as developers continue to push the boundaries and invent new applications that are powered by cryptocurrency. Many of the most famous projects centre around finance and peer-to-peer payments, but there are also those that seek to revolutionise the world of entertainment.
One of the more unique projects to come out of the world of blockchain is Decentraland - a virtual reality world where users can purchase virtual real estate, build their own environments and interact with various games and other activities.
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Admittedly, this is not your traditional investment opportunity, but investors shouldn’t be too quick to write Decentraland off - online gaming is big business, huge in fact. Minecraft, for example, another sandbox-style platform, has over 140 million users and generated $415m in revenue in 2020. Platforms like Fortnite and Second Life have even played host to celebrity events - and they are only growing in popularity.
Decentraland’s native cryptocurrency, MANA, is used to pay for goods and services on the network and within the digital world. Its ICO was notable for its success when it was launched in 2017, raising over $24 million in just 35 seconds. Since then, it has seen some impressive price runs and has become a popular ‘punt’ option for many crypto investors.
But does Decentraland really have any legs as an investment asset? In the following Decentraland price prediction we’ll look at reasons why you might want to add this unlikely candidate to your portfolio.
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Contents:
- Entering Decentraland
- How Does Decentraland Work?
- Looking at Decentraland’s Price History
- Decentraland Price Predictions for 2025
- Decentraland Price Predictions for 2030
- Will Decentraland Become Overpopulated?
- Conclusion: Should You Invest In Decentraland?
- Where To Invest In Decentraland
- FAQs
Entering Decentraland
Decentraland offers users the chance to step into a new world, with plenty of quirky things to see and games within games. It’s important for investors to understand that it is effectively juST one big video game. However, it represents one of the most popular formats - that of the open-world ‘sandbox’ in its truest sense.
In Decentraland, users can buy their own plot of land and use a fairly simple set of development tools to customise it - building houses, creating gardens and landmarks. Parcels of land are sold for MANA and the market works in a similar way to traditional real estate - there are prime locations and the more space you want, the more you have to pay.
That being said, users don’t have to buy land to take part. It’s possible to just explore the world - it has everything from arcades to art galleries and you can even buy artworks - as NFTs of course - to hang in your own Decentraland gallery.
The format seems to be catching on. At the start of 2021, Decentraland had about 1500 users a day entering its virtual environment. By March, it had hit 10,000. By April it had gone past 12,000 and the number continues to climb. Realistically, when it comes to investing in Decentraland, the number of users the project can attract is everything.
How Does Decentraland Work?
Underpinning the whole Decentraland infrastructure is another token: LAND. Essentially, these are NFTs - ERC20 tokens that represent plots of land in the Decentraland universe. These plots are divided into parcels - each measuring 16 metres by 16 metres, with one LAND token representing a particular parcel on the map.
As NFTs cannot be replicated, this means that the holder of the token ‘owns’ that piece of land for all intents and purposes. It’s even possible to stack tokens via the LANDEstates feature and acquire larger plots of land in Decentraland.
Similar groupings on LAND can also be grouped together to create Districts, which are effectively communities in Decentraland that have a kind of shared theme. Those holding LAND in that particular district can then vote on certain issues relating to the area via the voting dApp, Agora.
LAND can be purchased using MANA, which can be acquired in much the same way as any other cryptocurrency.
Read Also: Could Decentraland Be A Millionaire-Maker Coin?
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Looking at Decentraland’s Price History
We’ve already noted that Decentraland had a pretty successful ICO and the coin continued to do well in its first few weeks of trading, rising from around $0.015 per token in November 2017 to $0.26 by the first week of January 2018. Hardly big numbers, but nonetheless representing growth of over 1600%.
Things took a downhill turn after the first quarter of 2018, sending MANA down to a low of just over $0.067. The token then remained well below the $0.10 for the next couple of years - at one point sinking as low as $0.022 per token.
However, fast forward to the latter half of 2020 and there was a renewed interest in Decentraland. Prices gradually started to creep up and once again approach the $0.10 mark before 2021 hit and a crypto market upswing saw MANA reach a then-record high of just over $0.34 in February.
Decentraland has performed well since then and saw substantial price rises again in March, when MANA shot from $0.25 to $1.03 in around two weeks. However, it was May in which MANA soared to its record high of $1.60, marking a total increase of over 2000% for the year. In October MANA reached another high of $4.69. By November Decentraland climbed to its current ATH of $5.90.
At the time of writing, Decentraland was trading back down at $2.91 per token.
Check Out: Why Decentraland Is Going To Explode
What’s Next: Decentraland Price Predictions for 2025
It’s probably fairly obvious at this stage that much of Decentraland’s potential as an investment opportunity is dependent on how popular the platform becomes and whether a blockchain virtual environment offers something that those hosted by traditional developers do not. As such, coming up with a Decentraland price prediction presents an unusual challenge.
One of the best ways to come up with a reliable forecast for Decentraland is to consider the predictions of several market analysts.
DigitalCoinPrice’s Decentraland forecast offers a mixed picture. Whilst the MANA token is expected to grow over the coming years - exceeding $7 by 2025, that growth is expected to stall somewhat in 2023 when Decentraland is expected to experience short downturns in June and October, but recovering and trading at $6.09 by the end of 2025.
Elsewhere, WalletInspector has been much more optimistic with its Decentraland price prediction for 2025. It has MANA reaching a potential high of $5.91 before the end of 2022 and continuing to climb over the coming years. By the end of 2023, the platform predicts that the token will soar past the $8.75 mark and by 2025 MANA will be trading at a potential high of $14.85.
On the other hand, TradingBeasts is expecting much slower growth from Decentraland. According to its technical analysis, MANA will hit the $3.5 mark in 2022 and trade around it for the rest of the year. Things seem to remain similar throughout 2023 and 2024, with MANA entering 2025 at a price of $5.57.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Looking Further Ahead: Decentraland Price Predictions for 2030
Blockchain and video gaming have to be two of the fastest moving industries in existence, so making a long term price prediction for something like Decentraland may seem a little futile. However, looking at Decentraland price predictions for 2030 at least tell us about what analysts currently think about the projects long-term potential.
Long-term Decentraland forecast can be found at Cryptocurrency Price Prediction. According to its technical analysis, MANA will have soared past $9.39 by the end of 2022 and will continue growing at a substantial rate over the next ten years. By 2030, the platform believes that Decentraland will be valued at $116.67.
A cryptocurrency research firm by the name of Crypto Research Report is calling for Decentraland (MANA) to reach $4.5 by 2025, and $7.50 by 2030.
Will Decentraland Become Overpopulated?
As we’ve discussed, Decentraland leverages NFTs to provide a virtual world which users can genuinely own a part of, setting up their own house, garden and even an entire district - assuming they have the funds. However, this raises certain issues when it comes to the ongoing appeal of MANA.
We are of course, referring to the issue of LAND and scarcity - plots of land in Decentraland would be worth very little if there was an unlimited supply - but the virtual world is of finite space, which means plots will, in theory, appreciate in value.
However, this means that, if the project proves to be successful, the average gamer will be quickly priced out of the Decentraland real estate market. This then begs the question: what will users need MANA for, if not to acquire LAND?
The answer lies in avatars. As with Fortnite, users can buy clothes for their virtual character, customise its appearance and even buy weapons.
According to co-founder, Ari Meilich, “The long tail of players is probably unable to buy plots of LAND that sell for hundreds of dollars. Ultimately, I believe avatar accessories, such as clothes and weapons, will represent a larger share of the economy because these items will be accessible to all players. And looking at how games like Roblox or Fortnite make money, with avatar skins, I think we will see the same for Decentraland.”
So it seems that the team behind Decentraland have considered the scalability of their virtual world.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Conclusion: Should You Invest In Decentraland?
Decentraland is certainly an interesting prospect. Online gaming is a huge industry and the idea of virtual communities remains as popular as ever. Whilst it may fall outside of the traditional scope of most investors, it is certainly worth taking the time research the wider gaming market to get an idea of just how big Decentraland could one day become.
Of course, Decentraland’s future success depends entirely on the platform’s ability to grow and maintain popularity. But considering the speed in which the likes of Fortnite and Minecraft have gone from niche video games to mini-industries in their own right, it is perfectly plausible that Decentraland could suddenly take off - with its native cryptocurrency following suit.
As far as the virtual world of Decentraland goes, there’s certainly a lot of potential there and the games developed within the game world will also continue to grow in their sophistication. Then there’s the potential of virtual reality to consider.
So should you invest in Decentraland? The answer, as always, depends on your own investment goals. There’s no denying that acquiring a large holding of MANA comes with a fairly high amount of risk, but its also worth noting that the token has a very low trading price, so it could certainly be worth taking a punt on.
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Where To Invest In Decentraland
The great thing about Decentraland is it offers investors to get involved in what is effectively a different market - the video gaming industry. All you need do is find an exchange that is listing the MANA and you can simply add it to your portfolio.
Decentraland is not as widely listed as the major tokens like Bitcoin and Ethereum, but luckily, one of the industry’s leading brokerage platforms - eToro - has recently added MANA to its line-up of tradable cryptocurrencies.
If you don’t already have an account, then you’ll need to sign up but this only takes a few minutes, then you’ll have access to eToro’s powerful trading platform, which will give you the means to invest in Decentraland and numerous other tokens.
eToro – The Best Platform To Buy Decentraland
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
FAQs
What is Decentraland?
Decentraland is a virtual world in which users can buy plots of ‘land’, play games and interact with other users. The project is powered by its NFTs in the form of the LAND token and looks to compete with the likes of Minecraft and Fortnite.
How much will Decentraland be worth in 2025?
Coming up with an accurate Decentraland price prediction is tricky, but most analysts are positive about the project’s future. For example, WalletInspector believes the Decentraland MANA token will have surpassed $14.85 by 2025.
Is Decentraland a video game?
Whilst Decentralised appears similar to other virtual worlds, like Animal Crossing or Minecraft, it actually offers a whole lot more. Thanks to blockchain technology, users can actually own part of the Decentraland world and there are also numerous games being built within the virtual metauniverse.
Is now a good time to invest in Decentraland?
Online gaming is big business and if Decentraland starts to take off then prices could climb steeply. As such, those looking to take a chance on MANA might wish to add it to their portfolio sooner rather than later.
What are Decentraland price predictions for 2030?
Decentraland price predictions for 2030 should be taken with a rather large pinch of salt, as no one can say how popular the platform will prove to be. However, CoinPriceForecast's prediction of $116 by 2030 is optimistic, given the current sentiment towards Decentraland.