Is Now a Good Time to Buy Decentraland (MANA)?

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Contributor, Benzinga
July 12, 2022

Decided that now is a good time to buy Decentraland? You can buy MANA on Gemini!

In the past couple years, the concept of a metaverse, or a virtual reality (VR) environment where users can interact with others, has drastically risen in popularity. The idea permeated the tech community such that Facebook changed its name to Meta in late 2021. 

Decentraland is a metaverse project that hopes to incorporate crypto into the idea. However, many are wondering — is now a good time to buy MANA?

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

Is Now a Good Time to Buy Decentraland (MANA)?

Decentraland is currently down over 85% from its all-time high of $5.90, which was achieved in November 2021. It is also down over 75% year to date (YTD). While these drops may seem extreme, the entire crypto market has been steadily falling as well, so these decreases are not specific to MANA.

There are a few possible outcomes for MANA.

The token could continue to slide with the rest of the crypto market. If this is the case, then there could be further room for MANA to dip. Conversely, the markets could rebound and bring MANA back up. 

The other possibility is more reliant on Decentraland itself. If it is able to create new features or attract new users to the project, then the price could increase. Other tokens have risen during the bear market, largely because of new features or a strong community. 

How Long Will the Crypto Bear Market Last?

While it is impossible to predict how long a crypto bear market will last, analysts from the Nasdaq exchange predict that a bear market could last one to two years, which means we could be in store for another 18 months of downturns.  

If a bear market is to last that long, then it is important to be aware of investing strategies that can help reduce losses. Dollar cost averaging is a great strategy that many investors use to mitigate risk. This strategy involves buying a set amount of a token on a fixed timeline (for example, buy ten MANA once a month). This process gives investors exposure to various price levels that the token experiences. 

Another investing strategy is setting stop losses. This strategy automatically sells your tokens if they reach a certain price. This strategy can take the emotion out of investing and allow you to create a concrete plan for your investments. 

Will Decentraland (MANA) Ever Reach All-Time Highs? 

MANA currently has a market cap of $1.5 billion. This level sharply contrasts with the market cap in November 2021 of $10 billion. For MANA to reach new all-time highs, the price would have to increase by over seven times its current price. 

Obviously, a seven times change in price is no small feat. For this to happen, MANA would need a long time to recover or drastic changes to the crypto markets or the project would have to be made. 

Is Decentraland (MANA) a Good Long-Term Investment?

Decentraland could be a great long-term investment because it is one of the top metaverse cryptos. The project incorporates staples of crypto, such as non-fungible tokens (NFTs), into its metaverse. The project allows users to purchase metaverse land and gear using the MANA token.

MANA’s success is largely dependent on the number of users it has. If lots of people are using the token in the metaverse, then the price will most likely go up. So, the bottom line for MANA will be how many users the project can attract. 

If you are a staunch believer in the metaverse, then MANA may be a good investment. 

How to Buy Decentraland (MANA)

Decentraland has been around for several years, so it is available on a variety of different crypto trading platforms. Among the best are Coinbase Global Inc. (NASDAQ: COIN), Gemini and eToro. These platforms are well known for their security, low fees and ease of use.  As soon as you verify your identity with the exchange, you can deposit a supported crypto or fiat currency and start trading MANA.

  • securely through Gemini Crypto's website
    securely through Gemini Crypto's website
    Best For:
    New Investors
    Rating:
    Read Review
  • securely through Coinbase's website
    securely through Coinbase's website
    Best For:
    Coinbase Learn
    Rating:
    Read Review

    Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.

  • securely through eToro's website
    securely through eToro's website
    Best For:
    Demo Accounts
    Rating:
    Read Review

    Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk

    Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

How to Store Decentraland (MANA) Safely

While it may be easy to store your MANA on a crypto trading platform, these platforms have been hacked in the past, and users sometimes lose their investments.

A solution to this is a crypto wallet. These tools give users full control and responsibility for their funds. You can set up software and hardware wallets, although hardware wallets are often regarded as a safer option. 

Hardware wallets are physical devices that store the private codes needed to send crypto. If the physical device is not present to confirm transactions, then crypto cannot be sent.

Ledger is a leading brand of hardware wallet known for its safety and usability. It currently offers Nano S and Nano X models. The Nano S offers basic features while the Nano X is designed for easier use with Bluetooth connectivity and a larger screen. 

How Does Decentraland (MANA) Fit in the Bigger Picture? 

MANA is an ERC-20 token that uses the Ethereum blockchain to process transactions. The token is mostly used to buy and sell digital assets that can be used in the metaverse. Some of the project's main competitors are The Sandbox and ApeCoin. These tokens have almost the same utility as MANA but within their own metaverse ecosystems. The success of the tokens will likely heavily depend on which metaverse prevails. 

So, Is Now a Good Time to Buy Decentraland (MANA)?

Decentraland could become part of daily life if the idea of a metaverse truly gains steam. MANA is one of the leading metaverse tokens and has a strong community. However, the token has suffered massive hits in 2022.

If you are high on the idea of the metaverse and Decentraland’s role in its development, then now may be a good time to buy the token.

Q

Is now a good time to buy Decentraland (MANA)?

A

MANA’s price is dependent on the number of users Decentraland has. If you think Decentraland will increase in popularity, then now may be a good time to buy.

Q

Can Decentraland (MANA) reach new all-time highs?

A

MANA is certainly far away from its all-time high of $5.90, but a strong reversal could bring the token to new all-time highs.

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About Caden Pok

Caden has been involved with cryptocurrency for several years. He began trading and investing in crypto in 2018. Now, we mines multiple coins and holds positions in Cardano and Ethereum. He is very experienced with DeFi technology.