What is the metaverse and why is it receiving so much attention?

The metaverse is a digital virtual reality space where you can interact with other participants poised as players or participants. To look at it in another way, imagine you are located in New Delhi and want to attend a meeting in New York. In order to get there, you’ll have to fly to New York and attend the meeting. Or another way around could be, all the participants of the meeting could virtually meet in the Metaverse and attend the meeting. At this place, your digital avatars would meet and interact at the same place. You can also formulate any strategies or undertake any activity without physically moving to any other location.

The metaverse will not only facilitate instantaneous digital communication with one another but also help improve employment. Various metaverses will have their own economies running within themselves where you can earn and spend in cryptocurrencies.

Lately, the term ‘Metaverse’ has become extremely common on the internet as countless tech companies are spending millions of dollars to integrate their operations with the Metaverse. The most significant example would be that of Facebook, which renamed itself to ‘Meta’. It also claims that it is building its own metaverse which could lead to a revolution in the industry.

Numerous other companies have already launched several metaverse projects like Axie Infinity, Sandbox, etc. At Axie Infinity, players engage in a game and earn Axie infinity tokens which can be then exchanged in return for real cash. As an investor, there are numerous opportunities through which you can invest in the concept of the metaverse and expand your investments with the growth of the industry.

Let’s look at the top 5 Cryptocurrencies to invest in the Metaverse

1. Decentraland (MANA)

Decentraland is the biggest and most-talked metaverse project out there at the moment. The primary concept of the project is to provide a decentralized universe where you can perform any action freely. The total market cap of MANA, the token of Decentraland stands around $6 billion. The whole metaverse of Decentraland is divided into 90,601 parcels of land which are in the form of NFTs. You can purchase one or more of the parcels of land and modify it into anything you like. You can further monetize these assets to earn additional tokens. The buying and selling of these lands can be done with MANA tokens which is the cryptocurrency of Decentraland.

2. Sandbox (SAND)

Sandbox is the next common metaverse after Decentraland and contains immense potential. The features of the Sandbox metaverse are similar to Decentraland where you purchase land and develop anything thereon. You can also rent, lease or host events and monetize your piece of land and earn extra tokens in the form of SAND. The total market cap of Sandbox stands around $4.5 billion. As an investor, you can look at both these projects as they remain the leading players in the metaverse space.

3. Enjin (ENJ)

With the growth of the metaverse, more users will require a medium to create, modify and transfer digital assets of NFTs, and here’s how the Enjin token comes into play. Enjin provides a platform that allows users to create and load their assets onto the blockchain with the help of the Ethereum network. It also offers its own gaming platform known as the Enjin Network through which you can host websites, create clans, chat among yourselves and also host virtual item stores. At a market cap of over $2 billion, ENJ is one of the fastest-growing blockchain projects as it is one of the leading utility providers in the metaverse.

4. Axie Infinity (AXS)

Axie Infinity is a 'play to earn' metaverse, where you can collect, raise, breed, and battle the proprietory digital pets called ‘Axies’. All the characters and objects in the game are in the form of NFTs built on the Ethereum network. The platform has more than 2.5 million users from across the world and the AXS token has a market capitalization of $4.5 billion. Axie Infinity is not only a gaming metaverse but additionally provides real value income to its players in the form of the AXS tokens.

5. Ethereum (ETH)

Ethereum can be one of the top cryptocurrencies while looking to invest in the metaverse. This is because most of the metaverse projects are built on the Ethereum blockchain which makes it even more important. As more projects come up, that utilize the Ethereum blockchain the demand for the underlying token (ETH) will increase. Apart from this, Ethereum is also a leading player when it comes to smart contracts and NFTs. By looking at all the factors, you can consider Ethereum as a good investment option when looking to invest in the metaverse.

Bottom Line

As appealing as the concept of metaverse sounds, it is important to know we are still in the early stages of the adoption of Cryptocurrencies. Any negative regulation or rules against cryptocurrencies can lead to adverse results for your investments. Henceforth, it is necessary for you to perform your own research, evaluate your risk profile and then invest in cryptocurrencies. You should also remember that any cryptocurrency is extremely risky and volatile, therefore do not allocate a significant part of your portfolio into these assets.