๐–๐ก๐ฒ ๐Œ๐ž๐ญ๐š๐ฏ๐ž๐ซ๐ฌ๐ž ๐“๐จ๐ค๐ž๐ง๐ฌ ๐€๐ซ๐ž ๐†๐ž๐ญ๐ญ๐ข๐ง๐  ๐‡๐š๐ฆ๐ฆ๐ž๐ซ๐ž๐ ๐ข๐ง ๐‚๐ซ๐ฒ๐ฉ๐ญ๐จโ€™๐ฌ ๐Œ๐š๐ซ๐ค๐ž๐ญ ๐’๐ž๐ฅ๐ฅ-๐Ž๐Ÿ๐Ÿ

Metaverse and gaming-related tokens have suffered steep losses during a time when the broader crypto market is fighting through a weekend sell-off.

Decentraland (MANA), the top-ranking metaverse asset according to the cryptocurrency analysis firm Messari, is down 25% in the last seven days. MANA reached a market capitalization of $10 billion on Nov. 25 but now sits at $6.63 billion.

MANAโ€™s drop is followed closely by AXS, one of the tokens in the leading play-to-earn game Axie Infinity, which is down 23% in the last seven days. The AXS market cap is currently $6.21 billion but reached a high of $9.77 billion on Nov. 7, according to CoinMarketCap.

โ€œIt is no surprise that gaming/metaverse tokens got hit the hardest after the recent hype,โ€ said Lucas Outumuro, head of research at IntoTheBlock. Outumuro said that these tokens are extremely speculative bets, which is evidenced by the high concentration of short-term traders.

He said this previously occurred with Shiba Inu (SHIB), the self-proclaimed โ€œdogecoin killer,โ€ which had a high concentration of short-term traders too โ€” a strong indication of coins riding hype cycles.

Research from IntoTheBlock shows that metaverse tokens such as MANA have a high percentage of holders that bought within the past 30 days (32%), while such traders make up less than 10% for both BTC and ETH at the moment.

Outpacing broader sell-off

Bitcoin, the worldโ€™s largest cryptocurrency, is down 15% in the last seven days. Bitcoin experienced a crash on Saturday, which saw the price fall as low as $42,400 on some exchanges.

SAND, the native cryptocurrency of the blockchain-based virtual world The Sandbox, is down 25% in the last seven days, mirroring MANAโ€™s dip over the same time span.

Matthew Dibb, Stack Fundsโ€™ chief operating officer, and co-founder, said that while the future of metaverse and gaming tokens looks bright, there is very little real adoption in the present.

โ€œMost of the price appreciation was made up of future expected value rather than present valuation metrics,โ€ said Dibb. โ€œAdding fuel to the fire, there have been some large unlocks of early investors that have chosen to liquidate since the crash.โ€

Index Coopโ€™s Metaverse Index, which tracks crypto assets and protocols building out virtual worlds, is down 8.7% on the day.

Source: coindesk.com

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