Metaverse-related tokens have started the year by outperforming bitcoin by large margins. Bitcoin is the world’s largest cryptocurrency in terms of market value.
Decentraland’s MANA, the native token of the metaverse project, increased by about 145% in January. Decentraland’s price uptick mainly followed after it announced a number of new features a few weeks back. Despite that, the platform’s user figures have not increased significantly.
January’s market surge has witnessed several smaller tokens outshine the big cryptocurrencies by market capitalization. Bitcoin has risen 40% in January, ether 32%, and BNB 32%. Decentraland’s market cap is $1.3 billion, whereas bitcoin’s is $446 billion.
Yield Guild Games, a gaming guild that invests in the play-to-earn world and provides users with on-ramps, has gained 92% in price. The market cap for YGG is $57 million.
Managing partner at blockchain consultancy STORM Partners, Sheraz Ahmed, said the metaverse-related token increase is because “the business potential of such tokens is much more clearer now than it was about a year ago, which in contrast to certain altcoins is not the case.”
“It is clear that Investors have a growing interest in Web3 virtual worlds,” said Ahmed. The total market cap for metaverse-related tokens is currently around $8.5 billion, which is less than 1% of the total crypto market capitalization (now almost $1.1 trillion). Ahmed said that there is plenty of room for growth.