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Metaverse Traders Plunge into Losses

In the course of the crypto market growth in November 2021, the cumulative market capitalization of the “big four” metaverse tasks peaked at $16 billion. On-chain evaluation explores the vital elements which have plunged 98% of metaverse token holders into losses in 2023. 

On the market high in November 2021, buzzwords like Metaverse, GameFi, and Play-to-Earn dominated the crypto house. Barely two years later, most buyers who purchased into the Metaverse hype are actually counting their losses. 

In the course of the 2021 crypto market rally, The Sandbox (SAND), Axie Infinity (AXS), Enjin Coin (ENJ), and Decentraland (MANA) had been arguably the massive 4 tasks that dominated the Metaverse and GameFi sector.   

Notably, the cumulative market capitalization of the 4 tokens totaled $16 billion on the November 2021 peak. On the time, these Metaverse tokens accounted for 0.5% of the $3 trillion world cryptocurrency market cap. 

Nevertheless, because the crypto winter started, Metaverse tasks drew widespread criticism, from safety to privateness, group governance, and a scarcity of long-term HODLing incentives. 

Consequently, as of September 2023, SAND, AXS, ENJ, and MANA are actually collectively value solely $1.23 billion. This can be a staggering 92% decline from the $16 billion market cap recorded in November 2021.

To place this decline in correct context, the market dominance of those 4 Metaverse tokens’ has now dropped to 0.12% of the worldwide crypto market cap. 

Metaverse Investors Plunge into Losses | Market Cap - ENJ, MANA, AXS, SAND
Metaverse Traders Plunge into Losses | Market Cap – ENJ, MANA, AXS, SAND | Supply: Santiment

The market capitalization is a monetary metric that represents the full worth of a cryptocurrency’s circulating provide. It offers an estimate of the general worth of a blockchain at a particular time limit. 

By summing up the market cap of the massive 4 metaverse tasks, buyers can have a transparent image of the sector’s systemic significance inside the broader cryptocurrency market.

This underlines that crypto buyers have grown more and more disinterested within the metaverse sector over the past two years. And now, they’ve been allocating capital in direction of different extra resilient sectors and newly rising fads. 

It will not be recreation over but, however those that purchased into the 2021 metaverse hype are already counting their losses. 

IntoTheBlock’s Historic In/Out of the Cash (IOMAP) knowledge estimates the deficit or profitability ranges of all pockets addresses holding a selected token. It’s derived by evaluating present costs to the typical value of buying these tokens. 

The historic IOMAP knowledge introduced under reveals that an awesome majority of the present ENJ, MANA, AXS, and SAND holders are within the purple.

Of the massive 4 metaverse tasks, Axie Infinity and The Sandbox holders are faring the worst. 

Recognized for its as soon as boisterous in-game financial system, Axie Infinity is an NFT-based on-line online game developed by Vietnamese studio Sky Mavis. Historic knowledge from IntotheBlock now reveals that 99.54% of all addresses that acquired AXS are presently “out of the money.”

Metaverse Investors Plunge into Losses | Historical In/Out of Money data - AXS, SAND
Metaverse Traders Plunge into Losses | Historic In/Out of Cash knowledge – AXS, SAND | Supply: IntoTheBlock

In shut second is the Sandbox mission – a digital world the place gamers can construct, personal, and monetize their gaming experiences. A whopping 98.34% of those that purchased into the SAND token are additionally now underwater. 

In the meantime, Decentraland and Enjin Coin buyers are additionally removed from being worthwhile.

Decentraland grew to become standard for its vibrant digital market and group heart, the place customers create, purchase, and promote digital actual property. Nevertheless, as of September 1, 2023, 89.04% of buyers holding the native SAND token are additionally within the adverse territory. 

Metaverse Investors Plunge into Losses | Historical In/Out of Money data - MANA, ENJ
Metaverse Traders Plunge into Losses | Historic In/Out of Cash knowledge – MANA, ENJ | Supply: IntoTheBlock

Final of the 4, the Enjin Coin ecosystem, offers distinctive software program to permit builders to create and handle digital items on the Ethereum blockchain. Holders of the native ENJ token have additionally suffered the same destiny. 75.5% of buyers within the Enjin are additionally now sitting deep in a deficit place. 

Probabilities of a Rebound Seem to Be Getting Slimmer 

Concisely put, the cumulative market cap of ENJ, MANA, AXS, and SAND has dropped 92% from $16 billion to $1.23 billion between Nov 2021 and Sept 2023. However extra alarmingly, it reveals that metaverse tokens’ dominance inside the crypto business additionally shrunk by practically 76%.

Apple’s Imaginative and prescient Professional launch and optimistic statements from Meta (Fb) CEO Mark Zuckerberg have triggered a light resurgence within the Metaverse sector in July 2023. 

However now, that momentum appears to be tapering off quick for a number of causes. Firstly, criticism surrounding safety, long-term utility, and participant retention nonetheless lingers. Nevertheless, america Securities and Trade Fee (SEC) has additionally compounded the Metaverse woes. 

In June 2023, the SEC filed lawsuits in opposition to Binance and Coinbase. The regulator listed The Sandbox, Axie Infinity, and Decentraland as “securities” within the filings. Within the aftermath, SAND dropped by roughly 44%, AXS by 33%, and MANA by 40%.

In conclusion, the social sentiment surrounding the metaverse is now overwhelmingly bearish. Nonetheless, this might entice strategic buyers trying to purchase the dip in hopes of a future resurgence. 


In keeping with the Belief Challenge tips, this worth evaluation article is for informational functions solely and shouldn’t be thought of monetary or funding recommendation. BeInCrypto is dedicated to correct, unbiased reporting, however market circumstances are topic to alter with out discover. At all times conduct your personal analysis and seek the advice of with an expert earlier than making any monetary choices.


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