- Metaverse is nothing but an augmented reality world where users can create a fictional setting
- Metaverse coins have been surging lately, thanks to the renewed push after Facebook’s entry
- Meta cryptos even outshine big names like Bitcoin when it comes to return on investment (ROI)
If the blockchain-powered cryptocurrency pull wasn’t enough to convince critics, the metaverse addition to the space is compelling them to rethink.
Metaverse is arguably the most closely observed development. Tech giant Facebook has changed its name to convince watchers that it is a frontrunner in metaverse. The virtual reality world that takes the user into fictional realities is what metaverse technology is all about. Many crypto projects were already providing these services long before Facebook entered the competition.
5 breakout altcoins with metaverse underpinning
Below are five meta coins with over US$1 billion market cap that are worth watching as we move into 2022 when the competition is likely to heat up further.
1. Axie Infinity (AXS)
For crypto enthusiasts, Axie Infinity is no hidden gem. The returns of this metaverse coin dwarf returns of big names like Bitcoin and Ethereum.
Axie Infinity is a blockchain-based gaming platform with non-fungible token (NFT) features. NFTs in themselves have had a great year in 2021. CryptoPunk NFTs have sold for millions of dollars each, and Beeple’s ‘Everydays’ fetched close to US$70 million in a March auction. Axie Infinity takes NFT to yet-another level by allowing users to become a part of virtual reality.
The game is said to be inspired by Pokémon. But what sets Axie apart is its decentralized arrangement, which allows users of the game to partially own it. This is achieved through the linked AXS token, which the holders can stake to participate in the voting process.
The blockchain-game allows gamers to get hold of Axie characters, which are all NFTs. Each Axie, the game claims, has some unique features. Axies are used to enter combats and the ones with strong features are likely to win. This makes the case for Axies to command value like CryptoPunks or Bored Apes.
AXS crypto entered 2021 with a price tag of US$0.54. The rally began in July and as of now it is priced at a whopping US$140. The market cap of Axie Infinity is nearly US$8.5 billion, which makes it one of the top 30 cryptocurrencies.
2. Decentraland (MANA)
With a market cap of nearly US$4.5 billion, MANA crypto is another multi-billion-dollar meta coin. The project has its own metaverse where content creators can ‘own’ parcels of land.
Decentraland also has NFT features. Each parcel of land is unique and makes an ERC-721 standard token. The owners of these parcels can create new things and the linked MANA token is used for governance of the platform. Decentraland claims to be a decentralized autonomous organization (DAO). This typically means that users have the power to control design and governance aspects by staking MANA tokens.
MANA crypto entered 2021 with a price tag of US$0.082. As of now it is priced at nearly US$2.50. It was the Facebook’s metaverse announcement that caused MANA to surge.
3. Radio Caca (RACA)
Radio Caca entered the limelight when the world woke up to the potential of metaverse.
The blockchain-powered project allows users to purchase land in its augmented reality world. Users can then build upon their holdings and even create games. The project is titled ‘Universal Metaverse’. RACA is the linked token to add DAO features and allow users to take the driving seat. The blockchain game is not yet a top cryptocurrency by market cap, but the metaverse craze is likely to add to its status.
RACA was another blockchain gaming crypto with metaverse features that has lately soared in value. It is trading at nearly US$0.0075 as of now. The market cap of RACA is nearly US$1.4 billion.
4. Enjin Coin (ENJ)
One aspect that is common to virtually all metaverse coins is Ethereum’s blockchain use. Lately, Ether is on a gaining spree, thanks to the wider adoption of its blockchain. Enjin Coin is also an ERC-20 token.
Enjin Coin project claims to be a complete ecosystem of blockchain-based gaming, NFTs and tokens. It uses smart contracts where users can stake their ENJ holdings to mint ERC-1155 tokens. The project is a product of Enjin, a company that is into gaming since 2009. It forayed into blockchain making Enjin a platform where users can create clans and virtual reality tokens.
ENJ was priced at US$0.13 at the start of 2021. The price has surged to US$2.8 as of now. The market cap is nearly US$2.3 billion, which makes ENJ one of the top 100 cryptos.
5. The Sandbox (SAND)
Another ‘play-to-earn’ model-based project, The Sandbox is a leading metaverse player. It uses Ethereum services to combine gaming and blockchain. The linked SAND is yet-another ERC-20 token.
The Sandbox allows its users to create digital assets over blockchain and sell them in a game-type setting. The project has a DAO underpinning and users can stake their holding to vote on governance aspects. It claims to be a facilitator of a virtual reality space where gamers can create new digital tokens and sell the same to earn while playing.
On January 1, 2021, the linked SAND token of the project was priced at nearly US$0.036. As of now, it is trading at nearly US$2.29. The Sandbox is one of the altcoins that have given high returns in 2021. The project’s market cap is nearly US$2 billion.
Metaverse is capturing the imagination of enthusiasts and the entry of Facebook has heated up things. In the crypto world, many projects were already providing meta services. These blockchain-powered games use Ethereum’s blockchain. NFTs are an essential part of metaverse, which allows users to play and earn at the same time. The above five metaverse coins have all given good returns so far in 2021. As we enter 2022, these remain the top altcoins to watch.