During the crypto market boom in November 2021, the cumulative market capitalization of the “big four” metaverse projects peaked at $16 billion. On-chain analysis explores the critical factors that have plunged 98% of metaverse token holders into losses in 2023.
At the market top in November 2021, buzzwords like Metaverse, GameFi, and Play-to-Earn dominated the crypto space. Barely two years later, most investors who bought into the Metaverse hype are now counting their losses.
Market Capitalization of the “Big Four” Metaverse Tokens Has Dropped by 92%
During the 2021 crypto market rally, The Sandbox (SAND), Axie Infinity (AXS), Enjin Coin (ENJ), and Decentraland (MANA) were arguably the big four projects that dominated the Metaverse and GameFi sector.
Notably, the cumulative market capitalization of the four tokens totaled $16 billion at the November 2021 peak. At the time, these Metaverse tokens accounted for 0.5% of the $3 trillion global cryptocurrency market cap.
However, as the crypto winter began, Metaverse projects drew widespread criticism, from security to privacy, community governance, and a lack of long-term HODLing incentives.
Consequently, as of September 2023, SAND, AXS, ENJ, and MANA are now collectively worth only $1.23 billion. This is a staggering 92% decline from the $16 billion market cap recorded in November 2021.
To put this decline in proper context, the market dominance of these four Metaverse tokens’ has now dropped to 0.12% of the global crypto market cap.
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Author: Ibrahim Ajibade
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