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

As the market is giving us oppertunities #MANA is moving towards weekly support+GP! pic.twitter.com/Q8C0OInkMW
— Mimi (@Mimi_crypto_god) January 22, 2022

Analysts at FXStreet have predicted that Decentraland price is at critical support and could produce a relief rally.

Axie Infinity price awaits 26% crash as death cross looms

Axie Infinity price is expecting further losses as a death cross is approaching. The governing technical pattern projects a bearish target at $36.73, resulting in a 26% descent. Axie Infinity price has sliced below the lower boundary of the descending parallel channel on the daily chart on January 22. The prevailing chart pattern suggests a bearish forecast with a target of $36.73. Axie Infinity price would struggle to lift prices higher as the 50-day Simple Moving Average (SMA) meets the 200-day SMA as the former dips lower. The Arms Index (TRIN) indicator also suggests a pessimistic narrative as it indicates an increase in sellers in the market. The token may discover an immediate line of defense at the September 21 low at $48.10 before AXS drops lower toward the August 10 low at $43.29. An additional spike in sell orders may push Axie Infinity price toward the bearish target at $36.73. However, if buying pressure increases, Axie Infinity price may face its first resistance at the lower boundary of the governing technical pattern at $56.17. Read more

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram