What are Metaverse coins?

What are Metaverse coins?

Metaverse coins have arrived and with a flurry of digital coins on the market these days, figuring one’s way around them can be a near tumultous task indeed. What’s with the crypto, altcoins, and now metaverse ones?

Metaverse coins are the currencies that those who immerse themselves in the metaverse will use to purchase digital goods or transact. Those holding these coins can pay for anything within the virtual space from avatar clothing to real estate and cars. 

Although some tokens are available for use within some metaverses, others are available on cryptocurrency exchanges like Binance and others.

What are Metaverse coins?
Will Bitcoin play a part in the metaverse?

Metaverse tokens retain value in and out of the metaverse. In some cases, the currency also tends to represent unique items such as community membership and use of such coins or tokens can get one access to VIP features, or one gets to play against other players.

Additionally, one can elect to convert metaverse coins for real money. In the instance of non-fungible tokens (NFTs), one can opt to use them for verification of ownership of digital assets like artworks or collectibles.

There are three types of metaverse coins currently, namely Play-to-Earn (P2E), 3D virtual and Metaverse Platform coins.

Play-to-Earn (P2E) coins

Players engage in games and receive rewards with real-world value in the form of cryptocurrency. These are the most common and popular type of metaverse cryptocurrencies and they are also widely available on exchange platforms.

3D virtual metaverse coins

Compared to the simpler P2E games, these particular coins offer a virtual universe experience (a metaverse). Much fewer and more complex than other types of metaverse currencies, these virtual realities are worth billions of dollars. These can also serve as platforms for P2E games.

What are Metaverse coins?
Sandbox is one of the developments using metaverse coins.

Metaverse platforms coins

These include the blockchains that serve as the foundation of 3D metaverses. These include ApeCoin (APE), The Sandbox (SAND), Decentraland (MANA), Highstreet (HIGH), Floki Inu (FLOKI), Metahero (HERO), Virtua (TVK), Star Atlas (ATLAS) and others. Their current exchange rates can be viewed at Coinmarketcap.

In conventional investment, market valuation or market capitalization represent the total dollar value of a company’s outstanding or issued share capital. However, for cryptocurrencies, the market cap represents the total dollar value of all mined or issued coins. 

Why is market cap important ?

This metric is important because it enables measurement or quantification of a cryptocurrency’s value, provides detailed overview of a cryptocurrency, and provide a comparison of its value across other cryptos. Eventually, such metrics help investors to make better and more informed investment decisions. This data also helps them to gauge the earnings potential and  growth of a cryptocurrency and its volatility when compared to others when trading.

It therefore follows that coins with massive capitalisations are more stable. When compared to other coins with smaller valuations, they tend to be more more volatile. However, cryptocurrencies are generally more volatile and tend to fluctuate more dramatically when compared to other asset classes such as shares.

Why is Apecoin the biggest metaverse coin?

Apecoin, a token running on the Ethereum blockchain network, in association with the Bored Ape Yacht Club (BAYC), has rapidly spawned its popularity.

High profile investors and celebrities such as Jimmy Fallon, Paris Hilton and Eminem have all parted ways with wads of cash running into hundreds of thousands of dollars for a piece of Crypto Punks Collection and BAYC.

BAYC’s project, the Yuga Labs’ planned metaverse launch will give access to its exclusive but high-priced NFT collection such as CryptoPunks and World of Women.

What are Metaverse coins?

After enjoying a big rally and reaching an all time high of $27.60, Ape has not managed to keep that momentum. Since then, it has struggled to go above $10 since May. It’s currently trading at $3.87.

Market watchers see Ape Coin ending the year at a price of $8-10 by end of 2023.

“The value of Apecoin will largely be determined by the success at which APE proliferates as a medium of exchange and utility token that becomes widely utilised across digital economies,” Messari said in a report.

By 2023, APE is seen reaching $50 buoyed by “additional use cases to be implemented that give ApeCoin real utility.”

ApeCoin getting into the metaverse

By the end of 2024, ApeCoin is seen becoming more ingrained into the metaverse projects, increasing its demand from investors. If that happens, APE is seen closing the year at $75 by the end of 2024, according to a Messari report.

ApeCoin’s DAO recently launched its own NFT marketplace on 23 November.

What are Metaverse coins?

This comes after the DAO in the summer 2022 okayed NFT infrastructure company, Snag Solutions, to build the marketplace.

It’s marketplace enables NFT investors to acquire and dispose of tokens across Yuga Labs’ collection such as BAYC, Bored Ape, Kennel Club and Mutant Ape Yacht Club.

Crypto analytics platform, Messari, says a series of announcements from Apecoin in the past few weeks have helped drive interest from new users wanting to invest into the cryptocurrency.

BigOne Exchange chair in Asia Anndy Lian attributed APE’s cryptocurrency success to the fact that it was built on the Ethereum blockchain network.

“Looking at some of the volumes transacted on Whalealert and Whalestats, I can safely say that APE is one of the most purchased altcoins amongst the Ethereum whales. This is a very positive sign for the token and I must say APE is not just another ordinary meme coin,” Lian said.

But he says the token could do with some Q2more utility.

“The faith and comradeship within their community help keep the price and volume going, while doing so the other immediate thing they should really look at is to increase utility online and offline.”

APE is currently being used in Benji Bananas as an in-game currency and E11EVEN Residencies in Miami has also accepted APE as payment.

In any case, whenever one undertakes any major investment decisions, its important to understand the value of the security before allocation and funds to the said asset. One needs to carefully study and analyse their fundamentals to determine whether one is making a sound investment decision.

It is the same for metaverse coins.


Image credits: Shutterstock, CC images, Midjourney, Unsplash.