Because of Facebook's shift to a "metaverse" firm, tokens that are expected to be utilized as currency in new online gaming and e-commerce worlds should see an uptick in value going forward.
People will be able to work, play games, conduct e-commerce, and interact socially in the next generation of immersive virtual worlds that the metaverse promises.
A huge endorsement of the idea came last week when Facebook (FB) declared that it will change into a metaverse corporation and rename the company Meta Platforms (the primary social media platform will still be known as Facebook)
Meta's backers thought it was a good concept. Since the news on Thursday, shares have risen by almost 5%.
The crypto industry, online gaming, and digital assets, in general, might all profit from the metaverse progressing, with or without Meta.
Online gaming platforms and marketplaces that employ NFTs as in-game tokens and collectibles stand to gain significantly. According to BTIG analyst Mark Palmer's note published on Monday, many of these firms saw Meta CEO Mark Zuckerberg's statement as "confirmation of their work.
The term "metaverse" is now being discussed by people who had never heard of it before, he says. And the impetus for "play-to-earn" gaming models and NFTs-based virtual economies may be building now.
As an example of such a metaverse universe, Palmer cites Decentraland. Avatars may be created and interacted with in Decentraland, a virtual community on the internet. According to the website, this is "the first ever virtual world governed by its users."
MANA, the Decentraland token, has risen by almost 225% since Meta announced it last week. The MANA tokens may also be used to purchase Decentraland LAND tokens, which represent the virtual property. A digital real estate fund, Republic Realm, bought virtual plots for almost $900 million in June on the site.
In addition to Sotheby's, another prominent name in the auction business has made a play for Decentraland real estate. Decentraland's "Voltaire Art District" now has a virtual gallery where NFTs may be auctioned.
The new metaverse interest isn't limited to Decentraland's tokens. Other gaming tokens, including The Sandbox's SAND, Wilder Worlds' WILD, and Alien Worlds' TLM token, have also seen an increase in price since last week, as Palmer points out.
The Ethereum blockchain or one of its side chains is the foundation of several of these tokens. ETH, the Ethereum token, stands to gain from this in the long run.
Coinbase Global may also be a long-term winner (COIN). Trading platforms for cryptocurrencies are king at this corporation, which is the second-largest worldwide. According to JMP Securities analyst Devin Ryan, it has 68 million users, more than double the combined user base of Robinhood Markets (HOOD) and Charles Schwab (SCHW). Additionally, Coinbase is creating institutional services and an NFT marketplace in addition to introducing new cryptocurrencies to its platform.
With the recent introduction of Bitcoin futures ETFs, Coinbase could reap the benefits of increased crypto use as well.
The stock has been on a tear; in October, shares were up 40%, mirroring Bitcoin's 40% increase for the month.
The stock's price goals may need to be raised by Wall Street. In the most recent session, the shares were trading at $333, only 12% below the average $377 price objective.