AS the meme coin rally continues, Decentraland might be the latest to join the space with big gains in the past day.
In the past 24 hours, Decentraland has skyrocketed 72% to $1.38, according to CoinMarketCap.
During the past year, Decentraland has now surged more than 2,000%.
Why Decentraland is going up and risks explained
The latest gains come as Facebook changed its name to Meta – aiming to “bring the metaverse to life.”
A metaverse is a virtual reality experience where users can interact with others.
It can be thought of as a virtual universe.
Another metaverse cryptocurrency The Sandbox saw gains of 32% on Friday.
But before considering investing in Decentraland, make sure you know there are big risks that come with cryptocurrencies.
This is mainly because of the volatility that occurs in the industry.
For instance, before today, Decentraland had mostly traded under $1 since late May.
It hit an all-time high of $1.63 in April – but then crashed a month later.
And make sure you understand what you’re investing in, as the crypto space can be filled with complexity.
What is Decentraland?
As indicated before, Decentraland operates as a metaverse token.
It was founded by Esteban Ordano and Ariel Meilich in 2015 before launching its platform to the public in 2020.
Specifically, Decentraland operates as a blockchain-based cryptocurrency that models itself as a “world owned by users.”
It also claims it is the first-ever virtual world, allowing users to create, explore and trade.
Moreover, users can create scenes, graphics, challenges as well as trade digital assets including LAND, estates, and avatar apparel.
Decentraland uses “MANA,” which is an ERC20 token – meaning it’s based on Ethereum’s blockchain.
Mana price predictions
Some are wondering where the price of Decentraland will wind up.
And it’s hard to say because it’s unclear if the gains will continue after the recent news that sent it up.
It’s also unclear if this will turn into retail investors’ next meme coin of choice.
But to reach $2, Decentraland would have to climb another 45%.
Patrick Moore, founder and creator of Bitcoin and cryptocurrency information website CryptoWhat, thinks Decentraland can surge well beyond that mark.
“While the overall market sentiment is hot for crypto, it’s possible for MANA to reach $4 – $6 during this next bull run,” he told The Sun.
Some forecasters have price predictions; while it may not happen at the end of the year it’s certainly possible it will hit $2 eventually.
For example, Wallet Investor sees the price reaching $1.558 in 12 months from now and then surging to $4.651 in five years.
Coin Price Forecast sees the price reaching to $1.76 by the of the year and $2.55 by mid 2022.
But keep in mind, price predictions could change if bearish trends occur.
We’ve also done price predictions for Saitama, Bitcoin, Ethereum, Dogecoin, Shiba Inu, dYdX, and EOS.
Plus, we recently explained four things you need to know about Dogecoin.
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