What is MANA/USD?
MANA is the native cryptocurrency token of the Decentraland platform. It was founded in 2017 by Esteban Ordano and Ariel Meilich, when the official website for Decentraland also launched.
Hosted on the Ethereum network, it is a virtual world built on blockchain technology where users can buy, sell, and develop virtual real estate and assets. MANA is used within the Decentraland ecosystem for various purposes, including buying and selling virtual land and digital assets and participating in the governance of the platform.
Decentraland has a decentralised autonomous organisation (DAO) that allows MANA token holders to participate in the governance of the platform. They can vote on proposals and decisions related to the development and management of the virtual world. This democratic governance model gives users a say in the direction of the project.
Decentraland is known for having its own digital economy where users can create and sell digital assets, such as clothing, art, accessories, and more. These assets are represented as NFTs, making them unique and scarce, which can drive demand and value.
MANA/USD historical performance
The price of MANA reached its all-time peak of $5.90 in November 2021, owing to a surge in metaverse-related interest. As the game's popularity grew, so did the use case and demand for the token, which can be used to purchase virtual world assets.
However, the initial enthusiasm surrounding the MANA token was met with a dose of reality. Speculation, overvaluation of projects and tokens, along with regulatory uncertainties, played a role in the metaverse market's correction. As a result, MANA experienced a significant price decline of over 95% and has since found stability in the vicinity of the $0.28 mark.
Out of a total supply of 2.19 billion tokens, there are currently close to 1.9 billion in circulation.
What affects the price of MANA/USD?
As it is hosted on the Ethereum network, developments, upgrades, or changes in sentiment regarding Ethereum can impact the Decentraland ecosystem and, consequently, the price of MANA.
The adoption of the Decentraland platform and its use cases within the virtual world can influence the price of MANA price. As more users and businesses utilise MANA for virtual real estate, digital assets, and virtual experiences, the demand for MANA may increase, potentially driving up its price.
Regulatory changes and government policies regarding cryptocurrencies can affect the price of MANA/USD. Positive regulatory developments can provide a sense of legitimacy and security, while negative regulatory news can lead to uncertainty and price volatility.
Non-Fungible Tokens (NFTs) can also affect MANA/USD price movements. Decentraland relies on NFTs to represent virtual land and digital assets within its ecosystem. The popularity and value of NFTs, as a broader trend in the cryptocurrency space, can influence the demand for MANA.
Cryptocurrencies associated with other metaverse, or virtual world projects can indirectly impact MANA. Positive developments in the broader metaverse space can attract attention to Decentraland and its native token.
What to watch out for when trading MANA/USD?
- Partnerships and collaborations between Decentraland and other crypto projects.
- Statements or actions from regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States or the Markets in Crypto Assets (MiCA) regulation in Europe.
- The listing of MANA on prominent exchanges may increase its liquidity and trading volume, which may influence its price.
- Sentiment regarding MANA on social media platforms, message boards, and news outlets.
- Ethereum and Bitcoin market sentiment.
- Ethereum-based tokens and projects.