Is Decentraland (MANA) A Good Investment?

Introduction

Decentraland (MANA) defines itself as a virtual reality platform that allows users to create, experience, and monetize content and applications and is powered by the Ethereum blockchain. Decentraland, cleverly named “the stone age, developed in 2015 with a 2D proof-of-concept.” The project has come a long way since then, and on February 20/02/2020, it officially launched for the public. Decentraland is a fully decentralized, 3D virtual world where people can own and develop their virtual land or wander around and interact with what other users created and people that are exploring Decentraland at the same time. The landscape can include anything from interactive objects to static 3D scenery, buildings, art, games, or massive events that attract thousands of users. 

Decentraland is governed by a DAO, a Decentralized Autonomous Organization, which means that everyone in the community can participate and vote on the proposals they want to adopt or reject. They also control the important smart contracts, the Estate contracts, the Wearables, and the Marketplace. MANA is the name of a native token that fuels the economy of the Decentraland ecosystem. MANA was introduced back in August 2017 through an ICO that gathered a little over $26 million, and its circulation started a few months later. In January 2018, it saw an all-time high, reaching 18 cents, and that means the price is not at its ATH anymore. However, it is now trading around 5 cents. Still, that is more than a 100% increase over the ICO price.

How does Decentraland (MANA) Work?

Decentraland is built for content creators, individuals, and businesses that are looking for a new artistic medium, business opportunity, or source of entertainment. Decentraland brings a new paradigm to the virtual world. The world of Decentraland is divided into small fragments, called Parcels. Each Parcel is 16m by 16m, and this is the smallest piece of land you can own. However, if you own several parcels next to each other, you can create an Estate. Each Parcel represents this virtual land by X and Y coordinates on the map and by a LAND token on the Ethereum blockchain. LAND is an ERC721 token, which means it is a non-fungible or NFT token. In other words, each LAND is unique and cannot be replicated or exchanged with another.

LAND holders are free to develop their plot into whatever they choose, much of the Metaverse is broadly divided into several districts, each of which has a different size and theme. These districts were generated through individual crowdsales for MANA tokens, and parcels of LAND in these districts cannot be traded.

Financial Analysis:

Mana's Return On Investment (ROI) over the past year was 963%, way below its similar projects' ROI that saw an average ROI of 1194%. Also, it underperformed compared to the market's top 1500 project with an average ROI of 16,162%.

Mana's market capitalization rank followed an overall declining trend over the last four months, starting at the rank of ~80 on Jun 31, 2021, reaching 110 by the time of writing this post (10/25/2021) with an approximately $1 billion market cap. Moreover, its liquidity score is 57% above the market's average score, making it relatively easier to sell in bear markets.

Another critical factor in the success of any project is gaining public attention. Our data shows that Twitter and Reddit saw a growth of 37%, 19%, respectively, over the last months. However, Telegram saw zero growth over the last month.

You are saying that Decentraland (MANA) is the best cryptocurrency to invest in?

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