Returns as of 12/07/2021
Returns as of 12/07/2021
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Today, various metaverse-related cryptocurrencies have absolutely taken off. This is a space that has garnered a tremendous amount of attention right now. As it turns out, investors appear to be extremely intrigued by the disruption potential various blockchain networks provide in this regard.
As of 11:30 ET, Decentraland ( MANA 1.75% ) was up 14.5%, The Sandbox ( SAND ) saw gains of 5.5%, and Alien Worlds ( TLM ) was up 4.2%.
At least part of today’s price action among these cryptocurrencies can be evidenced by a sea of green on the cryptocurrency charts. Investors appear to be taking a risk-on approach to growth today, with many hyper-growth sectors trading higher. Metaverse-related stocks or cryptocurrencies are almost entirely seeing impressive price action as traders appear to have identified what looks like a sustainable momentum trade.
The stock charts of Decentraland, The Sandbox, and Alien Worlds all look quite similar over the past month. A late-October/early November move fueled by significant moves from various big tech companies to target the Metaverse appears to be the root cause of this upward momentum.
Over the past month alone, Decentraland, The Sandbox, and Alien Worlds are up 419%, 454%, and 35%, respectively at the time of writing.
Image source: Getty Images.
Each of these three metaverse-related cryptocurrencies power various online games. Each is built upon, or at least tied to, the Ethereum blockchain in some way, and allows users to monetize their experience via collecting in-game cryptocurrencies or non-fungible tokens. As such, these games have exploded in popularity, particularly in low-income countries where it’s been reported that users can earn a living playing these games.
Accordingly, there’s not only a metaverse catalyst underpinning these tokens. Rather, it appears investors like the utility being created for users, and the stickiness these crypto games provide for networks.
The metaverse happens to provide a rather wide range of investment opportunities for those seeking growth. Right now, one of the key places investors are going to for earth-shattering returns is the crypto world.
There’s certainly a strong thesis to be made for these tokens. After all, there’s real utility being created for users. Whether an online game is based on the blockchain or not doesn’t really matter to end users. If the experience is just as good, and there’s some potential money to be made by playing the game, it’s easy to see why the growth trajectory for these various tokens could be immense.
Of course, like all cryptocurrencies, each of these metaverse-inspired tokens carry a substantial amount of risk. However, it appears right now investors have determined that the risk is worth the reward. Accordingly, MANA, SAND and TLM are three tokens to watch in the weeks to come.
Why do we invest this way? Learn More
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning service.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/07/2021.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns as of January 1, 2021.
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool’s premium services.
Making the world smarter, happier, and richer.
Market data powered by Xignite.