Decentraland price prediction: Is MANA a good investment?

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MANA skyrocketed in late 2021, but what is the Decentraland price prediction for 2022?

Dencentraland logo shown on a smartphone                                 
November saw considerable encouragement for the MANA coin – Photo: Shutterstock
                                

Contents

With NFTs one of the hottest topics in today’s cryptoverse, coins associated with non-fungible tokens have been getting a lot of attention from investors.

MANA, the token associated with the Decentraland platform, is the third-largest NFT token by market capitalisation and the third-biggest gaming token.

From the Decentraland white paper

The Decentraland: A blockchain-based virtual world white paper is 15 pages long and outlines the “philosophical underpinnings, technical foundations and economic mechanisms of Decentraland”.

According to the white paper: “Decentraland provides an infrastructure to support a shared virtual world, also known as a metaverse, where users can create, experience and monetise content and applications.”

The document goes on to say: “Land in Decentraland is permanently owned by the community, giving them full control over their creations” – an appealing prospect for both gamers and potential investors. 

First, though, we should study the MANA price history. While past performance is no guaranteed indicator of future results, it can help give us some context for a Decentraland price prediction.

Decentraland price history: Boom times

When MANA started trading in 2017, its price was low, but not negligible. For instance, on 21 September of that year, it traded at just under $0.02, and for most of the next three years or so it stayed between $0.01 and about $0.10. Although it reached an all-time low of $0.007883 on 13 October 2017, it soon recovered.

As we said, it spent the next few years doing very little and rarely garnering much attention, closing 2020 at $0.07825. Even though the opening few months of 2021 were a real boom time for cryptocurrency, Decentraland was comparatively late to the party.

For instance, the first week or so saw it making modest gains, although it did break through the $0.10 barrier on 7 January 2021, when it closed up at $0.1277. This was, ultimately, a spur to action and it soon shot up, hitting an intra-month high of $0.2016 on 23 January. It then floated back down and closed on 31 January 2021 at $0.1547, a monthly rise of more than 97%.

February was another period of encouraging growth. The middle of the month saw it spending a respectable length of time over the $0.30 mark, with a monthly high of $0.3671 on 13 February 2021. However, this peak was followed by a slow decline and it finished the month at $0.2362. This was up by more than 52% on a monthly basis, but down more than 35% from the monthly high. 

March 2021, too, saw the growth theme carry on in a big way. A really notable day for the Decentraland (MANA) price was 13 March. This went from an opening of $0.6621, already a really positive score, to an intraday high of $1.17, a rise of 76% in mere hours. Although it dropped back to close the day at $0.9692, the following day saw it reach a monthly high of $1.19. There was some fallback from that price, but while its close of $1.02 was down more than 13% from where it had been earlier that day, it was still up by more than 336% from a month earlier.

If March 2021 was remarkable, then April 2021 was strong and solid – but, in comparison to the previous month, much less spectacular. At first, it looked as though the good times would not last, with a monthly low of $0.8399 on 7 April, but the price soon recovered and the end of the month saw a record-breaking $1.55 on 28 and 29 April, before settling down to close April at $1.49, a monthly rise of just over 44%. Good, but nothing like the March explosion.

Things started to crash in May. The token’s price was already going down by the time the great crypto day crash of 19 May 2021 took place. Before the crash, the price stood at an intraday high of $1.16; it then fell to an intraday low of $0.5051, which meant it more than halved in a matter of hours. While there was some relative recovery to close the day at $0.7803, a monthly close of $0.8507 meant it lost just under 43% of its value over the course of May.

June and July 2021 were both pretty poor for MANA. The coin closed out June at $0.58, down nearly 32% from the end of May and, while it recovered by 24% to finish July at $0.7192, it was still down nearly 8% on a two-month basis. 

August saw some more promising growth and it managed to close out the month up a little under 20% at $0.9432. September initially looked encouraging, with the price breaking through the $1 barrier for the first time since May, when it reached an intraday high of $1.06 on 3 September 2021. Despite it hitting a monthly high of $1.08 on 5 and 6 September, things went back downhill for MANA and it ended the month at $0.6882, down a little over 27% from August’s close. 

By now, it may have looked as though getting back to where it had been in the middle of May, let alone what it had achieved in March and April, was a forlorn hope for investors. But their luck was about to change in a big way.

Initially, however, it seemed to be more of a modest recovery, with much of October 2021 seeing MANA hover above $0.70, with some forays above $0.80. At the end of the month, however, it rocketed up. It started 29 October at an already encouraging $0.9259 before smashing its way to an intraday high of $1.48, a rise of just under 60%.

The next day was even more astonishing, with it zooming to an all-time high of $4.69, up more than 200% from the previous day’s high. While this sort of activity was to prove unsustainable, the coin’s October 2021 close of $2.89 represented a monthly rise just shy of 320%.

November saw some considerable encouragement, at least when compared with the lull of June through to mid-October, with it consistently topping $3 from 13 November 2021 and hovering somewhere between $3.90 and $4 on the afternoon of 19 November 2021.

MANA price history: 2022

The bears have been dominating the market since November, and after a difficult fourth quarter in 2021 for crypto across the board, by 1 January 2022, the token was holding around the $3.30 mark. 

The launch of the Australian Open tennis tournament in Decentraland on 17 January contributed to a massive gain for the coin over the course of a difficult new year, hinting toward a Decentraland price break-out. The price surged to $3.48 on 8 February 2022, the highest price recorded so far this year.

On 15 February, JP Morgan became the first lender to arrive in the metaverse, having opened a lounge in Decentraland, and by 16 February, the coin was trading at $3.18.

Towards the end of March, Decentraland hosted Metaverse Fashion Week, the world’s biggest digital fashion show. Despite these positive developments, MANA struggled to find momentum. The token closed out the month at an underwhelming $2.61, and a lack of new users had diminished the platform’s land sales. By the end of April, the token sank further to lows of $1.36. 

A phenomenal crash in May saw the token plummet further to the lowest value recorded so far this year, hitting $0.63 on 12 May. June brought little respite, and even heavyweight bitcoin fell below the $20,000 mark. The prolonged bear market has meant that there has been comparatively little movement in the price of the coin. Having peaked above the dollar mark from late July, the token, along with the wider crypto markets were showing some signs of improvement.

Decrentraland has also launched its third annual Metaverse Art week:

“Metaverse Art Week 2022 is coming at a pivotal moment for the larger adoption of Web3 technology and decisions about our digital reality. We believe that the future of the internet should be built by decentralised communities who do not seek to profit off of user data, imagination, or creativity,” said the Decentraland Foundation’s creative director, Sam Hamilton. “This year’s Art Week will be a love letter to what the next generation of artists are doing in the metaverse.”

As of 25 August, the token is trading at $0.85, and has a market cap of $1.6bn, making it the 37th-largest crypto by that metric.

MANA price prediction

Now, with that in mind, let’s take a look at the different kinds of Decentraland forecasts. What we do need to mention at this stage is that predictions are often wrong. In terms of long-term crypto predictions, many forecasts are made via an algorithm, and those algorithms can change on a regular basis.

DigitalCoinPrice suggests a value of $1.11 in September and $1.14 towards December. In a year’s time, the token could be trading at around $1.23. The site suggests an average value of $1.70 in 2025 and $3.87 in 2030.

WalletInvestor suggests that MANA will be worth $1.89 in a year’s time and $6.06 in five years.

Next, Gov Capital’s Decentraland price prediction for 2022 sees the coin reach the $1 mark at the end of October. The site suggests that one year from now the coin should be worth around $2.52, while in five years’ time it could be worth $14.  

A Decentraland price prediction for 2025 comes from PricePrediction.net, which suggests the coin will reach an average price of $3.53 for that year. Its Decentraland price prediction for 2030 sees the price at $24.97.

But there is one thing to note. At present, the fortunes of the Decentraland programme and, by extension, the Decentraland (MANA) price are very much tied to how the market for NFTs is doing. Now we have seen a decline in NFT prices, we have seen a considerable drop in MANA’s value. 

Another potential issue would be if we were to see a migration of users, en masse, from Decentraland to another platform. Fewer people using the system could mean a significant drop in MANA’s value.

That said, Decentraland was not specifically designed with NFTs in mind, so it could be that if the hypothetical situation described above does take place, the system could find another use. Nevertheless, it is something we have to keep in mind when considering the implications of a bullish MANA price prediction. 

FAQs

Is MANA coin a good investment?

It might be. That said, you do need to be cautious. Cryptocurrencies are highly volatile and prices can definitely go down as well as up. You need to do your own research and never invest more than you can afford to lose.

How many MANA coins are there?

There are 1.85 billion MANA in circulation and a total supply of 2.19 billion Decentraland coins.

How to buy MANA

You can buy MANA at a range of crypto exchanges. Just remember to do your research and keep in mind that cryptocurrencies are highly volatile and prices can go down as well as up. Never invest more than you can afford to lose.

Where to store MANA

If you want to hold MANA to use in the Decentraland platform, you need to keep it in an Ethereum wallet to be able to make use of it.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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