Decentraland, one of the best-known metaverse platforms, is imploding as the number of users in the ecosystem plummet. While MANA price has jumped by more than 14% from the lowest point this week, it has plunged by over 91% from the highest point in 2021.
Decentraland’s empty metaverse
Decentraland was one of the pioneers of the metaverse concept. It was a highly popular platform that made it possible for users to buy virtual land. At its peak, users were spending thousands of dollars buying virtual property.
Decentraland then grew to include events and gaming. One of its best-known events was focused on the fashion industry. At its peak, it partnered with several companies like Netflix, UNXD, Tokens.com, and Coral among others. Decentraland was valued at over $1 billion.
Today, however, Decentraland is a shadow of the former self as demand for the ecosystem plunged. Data compiled by SimilarWeb shows that visitors in its website dropped to 533k in April from 636k in the previous month.
Read more: How to buy Decentraland.
Additional data shows that the Decentraland Fashion Week event saw a much lower attendance this week. Data by The Block shows that the number of unique attendees in the event fell by over 76% to 26k. If this trend continues, it means that the event will not be popular in the future.
A separate report found out that the average number of people buying virtual land in the ecosystem stands at less than 30 per week. The average number of weekly transactions is worth about $50k.
Data by DappRadar shows that the unique active wallets (UAW) has crashed by over 42% in the past 30 days to 2.6k. The number of transactions in the ecosystem crashed by 74% to 25.6k.
A likely reason for this trend is that MANA price has lost over 80% of its value from its all-time high. As such, many people are no longer attracted to the ecosystem because of the poor payouts.
MANA price prediction
Despite the weak fundamentals, MANA price has jumped by more than 77% this year. This performance is not because of its improving ecosystem. Instead, it is because of the close correlation with other cryptocurrencies. In most periods, most digital coins tend to move in sync with each other.
The daily chart shows that the Decentraland price has been in a bearish trend in the past few weeks. It has formed a descending channel shown in blue. It has moved slightly above the lower side of this channel and remains below the 25-day and 50-day moving averages.
Therefore, the outlook of MANA is bearish if it manages to move below the support at $0.4430, the lowest point this month.
