The metaverse hype that began in 2021 dissolved almost entirely by the end of 2022 as the top projects in the space, Decentraland and The Sandbox, lost 95% of their market capitalization. The most prominent reason for the fall was a lack of user growth.
Still, the metaverse narrative is far from dead and will grow in the future. Reportedly, Apple (NASDAQ:AAPL) will launch its virtual reality gear sometime in spring 2023. The announcement was a positive catalyst for Decentraland’s MANA and The Sandbox’s SAND, causing a double-digit price surge.
The Apple pump-and-dump
Poor usage data hinders the reality of a sustained metaverse token rally
The Sandbox unique wallet addresses interacting with a decentralized application’s smart contracts. Source: Decentraland unique wallet addresses interacting with a decentralized application’s smart contracts. Source:
Token dilution risks remain
MANA/USD daily price chart. Source: TradingViewSAND/USD daily price chart. Source: TradingView