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The metaverse is one of the internet’s favorite new buzzwords.
If you’re new to the party, the metaverse is the latest iteration of virtual reality, or worlds accessed by people using virtual reality headsets. From shopping and entertainment to learning and gaming, some tech firms see the metaverse as a new frontier that could be as transformative as the World Wide Web was a generation ago.
This broadly futuristic concept became a household word after Facebook rebranded itself as Meta Platforms last year.
Cryptocurrency is starting to play a key role in certain areas of this brave new world. However, its role in shaping the metaverse has been complicated by the major dips of the crypto winter throughout 2022.
Here’s a look at the top metaverse coins — cryptocurrencies that play a role in facilitating trade and exchange within the metaverse — that have market caps in excess of $500 million.
1. Internet Computer (ICP)
Internet Computer was developed by the Swiss nonprofit Dfinity Foundation. The goal of ICP is ambitious: Replace the centralized Internet we are all familiar with today with a decentralized alternative.
The thinking is that today’s Internet is built primarily by centralized companies like Alphabet—which owns the Google family of products—or Amazon.com.
Launched in May 2021, Internet Computer aims to change that order, and aims to give users the ability to move toward a more inclusive, open-source Internet. It aims to execute this vision with smart contracts, which offer improved speeds with reduced computational costs.
Backed by big names like venture capitalist (VC) Andreesen Horowitz, his run was short but turbulent. Initially, ICP raised a high market capitalization of over $45 billion when the token was trading for around $700.
Although it is still one of the bigger cryptos, enthusiasm has waned. ICP’s price is down significantly from its initial highs.
2. Stacks (STX)
Bitcoin (BTC) may be the granddaddy of all blockchains, but its role in the metaverse was somewhat unclear until Stacks launched on top of it.
Stacks is a layer-one blockchain that connects to Bitcoin’s blockchain through STX’s proprietary proof-of-transfer (PoX) mechanism. This technology allows Bitcoin miners to pay to make new STX tokens. Additionally, stack containers can stack (as opposed to strike) their own STX coins to earn BTC rewards.
Stacks’ main goal is to bring Web3 decentralized applications (dApps) and smart contracts to the oldest and most secure blockchain in the world, Bitcoin. It was founded by a host of venture capital funds, including those from Winklevoss Capital, Y Combinator and Digital Currency Group.
Stacks 2.0, the first cryptocurrency to receive approval for sale by the Securities and Exchange Commission (SEC), launched its mainnet in January 2021.
3. Axie Infinity (AXS)
Axie Infinity took the crypto world by storm during the Covid-19 pandemic and emerged as the biggest “play to earn” game, paving the way for the likes of Sandbox and Decentraland.
Axie Infinity was inspired by popular games like Pokemon and Tamagotchi, and in many ways it is similar. Players pit cute monsters against each other to win in-game tokens.
Unlike its centralized cousins, Axie Infinity is domiciled on the blockchain, samples are purchased in the form of NFTs and the tokens earned – AXS – are a cryptocurrency that is actively traded on the market.
AXS was very popular during the pandemic as a way for people to earn money while locked at home. As the play-to-earn model has grown, its hierarchical nature has been criticized.
Wealthier investors, known as scholars, can buy the expensive NFT samples before renting them out to players, known as workers, in lower-income countries. Axie Infinity is extremely popular in the Philippines, Venezuela, USA, Thailand and Brazil, in that respective order.
Players receive only a portion of the proceeds earned for playing – without the financial means to purchase the NFTs without an intermediary.
4. The Sandbox (SAND)
The Sandbox is a virtual world with native tokens for trading in-game digital assets. SAND can be earned and spent in the Sandbox, just like MANA in Decentraland, another metaverse coin featured on this list.
Virtual world tokens highlight what makes investing in the metaverse so challenging. With the metaverse still in its nascent stage, with an ever-expanding range of platforms and a rapidly changing environment that changes daily, it is very difficult to pick a winner.
The price of the SAND token has unsurprisingly struggled so far this year as both these variables and the broader market have moved against it.
Whether or not the metaverse achieves its goals remains a question of which games, platforms, and apps will rise above others. At the moment, SAND is one of the biggest players in this space.
5. Theta Network (THETA)
YouTube, Netflix, Amazon Prime and Twitch are the titans of video streaming, operated by centralized companies that wield great power.
Enter Theta, a blockchain purpose-built for video streaming. It aims to decentralize video streaming by operating a peer-to-peer video delivery network.
The company’s promises are like many metaverse business plans: cut costs, transfer power from companies to the masses, and eliminate middlemen. According to Theta, this vision would give a bigger share of the pie to content creators and make video cheaper for consumers.
The Theta network is designed so that when users consume video content, some of their computing power and spare bandwidth is used to transmit those videos to other users on the network. In return, THETA tokens are earned. The more people on the network, the higher the streaming quality and speed.
Those in the traditional video streaming industry have taken notice. Theta’s advisory board includes Twitch co-founder Justin Kan and YouTube co-founder Steve Chen.
6. Decentralized Land (MANA)
Decentraland operates a whole metaverse of its own. It is a VR platform powered by the Ethereum (ETH) blockchain, with a native token MANA used to conduct business within its worlds.
Users can create avatars and navigate this online universe as they wish. They can buy land, outfits for their avatars, accessories and much more on the Decentraland Market. Content and applications within the world can also be monetized.
The hope for this project is that Decentraland becomes a place where more and more users choose to visit, do business and transact daily.
Concerns about declining users have some wondering if the metaverse project will succeed or if conventional games remain a better alternative.
7. ApeCoin (APE)
ApeCoin is not only one of the largest metaverse coins on the market, but also one of the newest. It is designed to power the growing ecosystem around the popular Bored Ape Yacht Club.
Bored Ape Yacht Club is one of the most successful non-fungible token (NFT) art collections. The lowest price for one of these blockchain art monkeys is estimated at a whopping $100,000. Its sister NFT collection, Mutant Ape Yacht Club (MAYC), carries an $18,500 price tag as a floor price, CoinGecko’s data shows.
To capitalize on the popularity of these expensive monkeys, APE was aired in March 2022 to every container of a Bored Ape or Mutant Ape NFT.
Metaverse FAQ
How can you buy metaverse coins?
Metaverse coins can be traded like any other cryptocurrency. Larger tokens can be purchased on cryptocurrency exchanges by simply exchanging fiat money into the desired token, using the exchange’s liquidity pair.
That said, the more obscure metaverse tokens may lack liquidity for fiat trading pairs. Traders may therefore be required to first purchase a larger cryptocurrency, such as Bitcoin (BTC) or Ethereum, before subsequently exchanging it into the more niche metaverse token they desire.
However, as evidenced by the historical price references in the above article, purchasing these coins is an enormous risk – and should be classified as a gamble rather than an investment.
You need to be vigilant and do all the necessary research, while of course ensuring that you only invest what you can afford to lose, given the extreme volatility and vulnerability to large withdrawals that these coins have.
Where can you buy metaverse coins?
Larger crypto exchanges such as Binance and KuCoin have trading pairs for the majority of the larger cryptocurrencies, including the larger metaverse coins—ICP, APE, SAND, THETA, MANA, and AXS.
If you go the conventional route, you can also use a decentralized exchange (DEX) to buy metaverse coins. This means Know Your Customer (KYC) is not required—rules that help verify users and prevent criminal and money laundering activity. A DEX allows you to access more obscure cryptocurrencies.
But the user experience with DEXs is unintuitive and unique to cryptocurrency. There is also no customer service, or recourse, should a mistake be made and your crypto sent to the wrong place. Therefore, this route should be avoided unless you are a highly experienced trader.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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