3 Unstoppable Metaverse Tokens to Watch in February

A person wearing virtual reality goggles.

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Major organizations are exploring the virtual world.

Key points

  • The current crypto decline is not keeping big brands out of the metaverse.
  • Even with the 30% drop on average for cryptos, metaverse interest is boosting these projects -- Enjin Coin, Decentraland, and The Sandbox -- to recent 25%+ gains in a down market.
  • This upward trend is likely to continue into the new month.

You don't have to be Warren Buffett to know the past month was especially brutal for stock investors, with the S&P 500 down 6.5% for the past four weeks, logging the worst returns for stocks since the pandemic began. That's almost quaint compared to the volatile cryptocurrency sector, which has seen more than a $1 trillion drawdown in value, averaging out to about a 30% drop across the sector from its November peaks.

But there are some bright spots in the crypto market, and one of those areas is the metaverse, where some projects continue to shine through the dark declines.

1. Enjin Coin (ENJ)

Enjin Coin (ENJ) is the native token of Enjin's cross-blockchain, cloud-based gaming offering. Enjin's premier solution is its Enjin Network, a social gaming platform that enables users to create their own websites, virtual storefronts, gaming teams, and chat forums. It's like a social gaming and content creation mash-up app.

Enjin allows game developers to create in-game items (i.e. weapons, tools, player skins, etc.) on the Ethereum blockchain that can be bought, sold, and traded, producing real-world value. It launched on the Ethereum mainnet, an ERC-20 token, in June 2018. Additionally, ENJ is a digital store of value used to back the value of blockchain assets like non-fungible tokens (NFTs).

As of this writing, ENJ is trading up 2.65% over the past 24 hours and 25.13% over the past seven days, according to CoinMarketCap, demonstrating strong momentum heading into February. This token also has a low market capitalization of $1.5 billion, which could multiply 10 to 20 times and still be inexpensive.

2. Decentraland (MANA)

Decentraland (MANA) is a virtual reality platform built on Ethereum blockchain. MANA enables its users to create, sell, and engage with their own content -- or content and apps -- created by others without leaving the environment. In this digital world, players/creators can buy virtual real estate that they can develop, use to host live events, build up, and make money from.

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Since launching in February 2020, MANA users have created a wide range of experiences on their digital parcels, including epic 3D vista and various interactive experiences. It's also used for hosting live virtual events, such as New Year's Eve celebrations last month, and digital experiences linked with the Australian Open that wrapped up this past weekend.

As of writing, MANA's price is up a strong 8.10% on the day and 33.79% spanning the past seven days, according to CoinMarketCap. Given its proven use case for live event promotional tie-ins, its current $5 billion market cap could easily skyrocket 20 times or more as metaverse adoption grows.

3. The Sandbox (SAND)

Similar to MANA, the Sandbox is a blockchain-based virtual world that allows users to create and trade digital assets within a gaming environment. Its virtual world runs on a decentralized autonomous organization (DAO) model. The DAO manages the activities and what happens in that digital setting using smart contracts, while allowing users to explore, experience, and build within SAND's ecosystem, including creating and selling NFTs in-game.

Also, the SAND platform enables users to benefit from its "play-to-earn" model, which allows gamers to win SAND tokens for reaching various in-game milestones. Those tokens can be used to make purchases within the gaming environment or offloaded to a crypto exchange to be converted into other digital or fiat currencies.

According to CoinMarketCap, SAND's price was up 3.20% on the day and 34.72% over the past week. Since its creation, SAND has sold more than $350 million in virtual real estate to some of the world's largest companies and popular celebrities -- more than any other other metaverse destination, according to nonfungible.com. And it's showing no signs of slowing down. That's a good sign that its $3.68 billion market cap will keep pace -- if not surpass MANA -- as the metaverse expands.

As always, be sure to do your own research, as there are no certainties when investing. However, we can be fairly certain the metaverse is not going away anytime soon and is likely to grow for years to come.

Our Research Expert