Today, crypto investors awoke to yet another round of selling across the board. As of 2:30 p.m., high-flying metaverse coins Decentraland (CRYPTO: MANA) and Enjin Coin (CRYPTO: ENJ) had dropped 3.6 percent and 4%, respectively, over the previous 24 hours. Today is 5:00 p.m. ET. Fantom (CRYPTO: FTM), a platform that has sparked interest as a potential metaverse environment, has witnessed even more precipitous drops, plunging 4.9 percent in the same time frame.
Decentraland and Enjin Leaders
Investors regard Decentraland and Enjin Coin as leaders in the blockchain-based metaverse future. As of 9:30 a.m., the situation has not changed. Both tokens fell sharply in the late morning and early afternoon trade before recovering in a similar manner.
A shift in mood among growth investors in the crypto field has been blamed for most of the recent fall in these high-flying cryptocurrencies. It’s unclear whether capital flows out of metaverse tokens and into other assets because of profit-taking or risk aversion. However, neither metaverse cryptocurrency’s trend has been beneficial in recent months.
Fantom, as previously stated, is more of an afterthought in the recent crypto surge that has a metaverse motif. It revealed ambitions to increase the metaverse visibility of the platform in October. As a result, the price of this token has recently followed those of prominent metaverse cryptocurrencies like Decentraland and Enjin currency.
Today, however, Grim, a decentralized finance initiative on the Fantom network, disclosed a hack that resulted in the theft of $30 million in cryptocurrency. This also lowered Grim Finance’s overall value locked in from nearly $100 million to only $4.2 million today.
Like other risk assets, high-flying cryptocurrencies have been caught up in what looks to be a wholesale de-risking of investor portfolios in recent weeks. It’s worth noting that the cumulative return on these three metaverse-related tokens has been phenomenal this year.
Taking a global view of the growth of the omicron COVID-19 variety, as well as a more hawkish monetary policy stance from central banks, investors may want to let off the gas pedal. The high-profile theft of a critical Fantom project also doesn’t provide much of a reason for investors to be optimistic.
It remains to be seen whether this sell-off will ultimately prove to be a purchasing opportunity. For the time being, the market appears to be in a holding pattern. As a result, I expect more volatility in the first quarter of next year rather than less. Is it worth it to put $1,000 into Decentraland right now? You’ll want to hear this before you contemplate Decentraland.
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