Metaverse Tokens Post Sharp Weekly Losses, Here’s Why:
Major metaverse tokens fell sharply this week as Facebook owner Meta Platforms hit a road block in its plans for a virtual world. Broader crypto market weakness also weighed on most tokens.
Top metaverse tokens including Decentralan (MANA), The Sandbox (SAND), Axie Infinity (AXS) and ApeCoin (APE) dropped between 15% to 26%. AXS was the worst performer among its peers, also losing its spot as the third-largest metaverse token as it struggled to recover from a $600 million hack.
Sentiment towards the space was hit by a potential delay in Meta’s plans for a virtual world, which could slow down the amount of capital flowing into the metaverse space. Investors also appeared to be collecting profits after a strong run in token prices through late-March.
Broader weakness in the crypto market also factored into token losses.