Three reasons why Decentraland could boost value of Ethereum network
- Experts believe metaverse tokens like Decentraland increase Ethereum's valuation through a spike in transactions.
- Decentraland is built on the Ethereum blockchain, so growth of the metaverse token increases the altcoin's transaction volume.
- Interest in rentals and purchase of metaverse land could remain high based on a report from an AI firm.
- Analysts believe Decentraland's price could remain above weekly support at $2.04.
A rise in the sale of digital real estate on Decentraland could increase Ethereum valuation. Analysts believe that virtual real estate sales could continue climbing higher in 2022.
Decentraland real-estate sales could increase in 2022
Decentraland is a three-dimensional virtual world platform built on the Ethereum blockchain. The user-owned metaverse project has witnessed a spike in the sale of virtual real estate in the last quarter of 2021.
NWO.ai, a predictive AI platform, recently published a report stating that there could be an increase in rentals and purchase of digital real estate in the metaverse. Therefore, projects like Decentraland could witness a spike in adoption and on-chain activity.
Increase in the utility of Decentraland increases activity on the Ethereum blockchain. In a recent edition of "The Crypto Show," at Backstage Pass, a Gaming and Technology institute, Chris MacDonald, a crypto proponent, was quoted as saying:
There's a theoretical valuation model, that a token is worth all of the sum aggregate value of all the applications built on top of its network. For Ethereum, projects like Decentraland are really important [...] there's an indirect valuation argument that can be made for Ethereum as well for sure.
The growth of metaverse projects on the Ethereum blockchain fuels the narrative of the rising valuation of the altcoin's network.
@Mimi_crypto_god, a crypto analyst and trader, evaluated the Decentraland price trend and predicted that the metaverse token's price could remain above weekly support at $2.04.
$MANA / USDT
— Mimi (@Mimi_crypto_god) January 22, 2022
As the market is giving us oppertunities #MANA is moving towards weekly support+GP! pic.twitter.com/Q8C0OInkMW
Analysts at FXStreet have predicted that Decentraland price is at critical support and could produce a relief rally.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
