JPMorgan recently announced opening its first metaverse loungein Decentraland, dogecoinmillionaire . This helped the related cryptocurrency, MANA, grow in its price. This news sent the price of a single MANA up by over 7%. So, what is Decentraland and how is this move promising to its value?
JPMorgan’s Entry into the Metaverse:
JPMorgan Chase became the first bank to set-up a shop in the metaverse. It is the largest U.S. bank with a net asset holding of over $3 trillion. The step is seen as a way for the bank to promote its interest in the metaverse. Its lounge on Decentraland has been named “Onyx lounge.”The bank has also issued a white paper detailing the opportunitiesfor businessesin the metaverse.
One of the reasons attributed to this move is the fast-growing prices of parcels of virtual land. In June last year, the prices were around $6,000 and currently they have doubled across different platformsincluding:
- The Sandbox
- Somnium Space
A number of other parties have already announced their metaverse ventures. For example, Samsung has a version of its store on Decentraland. The government of Barbadoshas an embassy on the metaverse.
What is Decentraland?
Decentraland is a virtual reality (VR) game based on the Ethereum blockchain. It makes use of MANA tokens as a form of currency. This in-game currency can be used for buying services and goods. It is currently trading at a price of around $2.52, which is more than 1,500% of its 52-week low price.Decentraland is a 3D VR platform that allows users to create and monetize their content and applications. The goal is to create a network that is owned by its users and offers an immersive experience. Some of the key features of this metaverse are as follows:
- It is a shared metaverse that allows its users to buy virtual plots of land.
- Users can buy LAND using MANA tokens.
- Users can interact, socialize, play, and learn in this virtual world.
- Users can explore LAND owned by other users, connect, trade virtual assets, and experience structures and scenes.
- LAND is a 3D virtual space or an NFT asset that is transferable and users can also own it permanently.
- A piece of LAND measures 52 by 52 feet.
- LAND owners can do many things on their piece of LAND–create applications, games, and dynamic scenes.
- There is a cap of 90,601 on the number of plots.
The content on Decentraland is distributed on a decentralized P2P network. It is not hosted on any centralized server infrastructure.This P2P network’s users are self-funding and thus cover the cost of hostingthe files and bandwidth. The platform has plans to develop a protocol that will cover the future cost of infrastructure. It will use the revenues from MANA token sales to address the costs.
Importance of JPMorgan’s Decision:
JPMorgan’s decision to enter Decentraland is important for the entire metaverse. This is becauseadoption is an important factor for the success of this platform. Traditionalbusinesses, when they enter metaverses and generate sponsorship revenues, will be helping Decentraland and other similar projects. While the crypto market slowdown has also hit metaverse cryptos, MANA has been riding on this news.
JPMorgan’s decision has helped Decentraland attract a lot of attention. This has helped MANA’s price move higher. The success of any metaverse depends on its continual effectiveness in attracting such mainstream businesses.
Future MANA Prediction: Revisiting $4:
MANA’s price has been sliding for the past week and is now into a U-turn. The Decentraland token’s price is expected to create new peaks. The recent rejection or buyer inability is seen as a temporaryslowdown. The coin seems to have built the base for its next growth phase.It is expected that MANA could cross $4 in the near future.
The number of $100,000 or larger value transactionsshowed an upward trend last month, moving from just 94 to over 272. This major spike is seen to indicate that the interest of high net-worth investors has increased significantly. MANA peaked at around November, touchinga price of $5.91 before gradually losing value similar to Bitcoin and other digital coins.