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Decentraland is one of the biggest players in the metaverse.
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But its population is less than 1,000 people.
The metaverse is dead! MANA price has crumbled in 2022 as investors assess the state of Decentraland’s ecosystem. The token was trading at $0.3140, which was about 95% below its all-time high. In this period, the token’s market cap has plunged to about $582 million. At its peak, Decentraland had a market cap of over $7 billion.
Decentraland is dying
The metaverse was pitched as the best use-case for the blockchain technology. For a while, the concept appeared to work well as the number of people using the technology surged. At the time, most metaverse-associated tokens like Decentraland, Sandbox, and Enjin Coin surged to record highs.
The industry was supercharged after companies like Meta Platforms and Nvidia moved into the industry. It also expanded as some individuals and companies decided to spend a fortune buying metaverse property.
This year, however, the industry has changed as the number of people using the technology has crashed. Recent data shows that the actual population of Decentraland totals about 810 while the number of NFT buyers in the ecosystem stands at 3,668. Data by Nansen shows that Decentraland’s population is actually much smaller than that at 526, as we wrote here.
With such a small and shrinking population, there are concerns that Decentraland is dying unless a miracle happens. A possible factor that could see the network resurrect is events that could attract thousands of users.
However, as we saw earlier this year when Decentraland hosted a fashion event, the industry is still young. The event attracted well-known brands like Forever 21 and Balenciaga but users had a tough time navigating the platform.
For MANA price to recover, it also needs for the broader crypto industry to bounce back. If this happens, there is a likelihood that it will recover because of the close correlation that exists in the crypto industry.
MANA price prediction
The daily chart shows that the Decentraland MANA price has been in a strong bearish trend in 2022. This drop culminated in it falling below the important support level at $0.6057, which was the lowest level in May. It has also plunged below all moving averages while the Relative Strength Index (RSI) has moved to the oversold level.
Therefore, MANA crypto will likely continue falling as sellers target the next key support level at $0.1500. A move above the resistance point at $0.60 will invalidate the bearish view.