Despite a recent lull in virtual world interest, it looks as if the Metaverse has reignited an excitement flame.
Although Meta started to gain traction, the Metaverse industry is still being led by two front runners, The Sandbox and Decentraland.
The Decentraland (MANA) price has been fluctuating between $0.60 and $3 for the past year, but can it reach $1000?
Decentraland will need to increase its value by 100,000%, or 1000x, to reach $1000.
This percentage increase looks to be incredible, but it is worth comparing this to the mighty increase Shibu Inu saw for its investors when it increased its price by 142,000% between early 2020 and mid-2021, it may not appear as crazily far-fetched as it may appear.
Market capital is the biggest deciding factor as to whether a cryptocurrency, such as MANA (the cryptocurrency behind the Decentraland Metaverse) has the possibility to 1000x its current price.
Ethereum managed to increase its price from a low of $0.81 to a high of $4,300, and Bitcoin managed to increase its price from a low of $0.09 to a high of $51,000.
Using these increases as a marker on potential possibilities, it at least seems possible that MANA could increase from $0.70 to $1000.
But ultimately, it’s the market capital that needs to be studied in detail to see the real likelihood of this happening.
Market Capital in Cryptocurrency
The market capital in cryptocurrency is the calculation of number of tokens in circulation multiplied by the current price.
This gives the most accurate valuation of a cryptocurrency as a whole entity, and allows investors to compare against the value of other cryptocurrencies and investments in the market.
The Market Capital calculation can be shown more simply using the calculation:
Market Value = Number of tokens in circulation * Trading Price
It is by far the most important piece of data to look the potential of a 1000x return on investment.
A very high market capital, even with a low trade price, indicates growth of this type of magnitude is very difficult.
A very low market capital, even with a high trade price, indicates it at least has the potential for large growth and very high returns.
This of course is subject to the success of the cryptocurrency, the Metaverse as a whole and Decentraland’s ability to attract many additional investors.
Let’s look at this using an example.
A cryptocurrency with 5,000,000 circulating coins may have a trade value of $20 a coin, giving this cryptocurrency a market share of $100,000,000.
Another cryptocurrency with 2 billion circulating coins may have a trade value of $0.50 a coin, giving this cryptocurrency a market share of $1,000,000,000.
Although the second cryptocurrency has a current price of $0.50 compared to the first cryptocurrency of $20, it is the $20 cryptocurrency that is worth less overall in terms of market value.
10 times less in fact.
It will be considerably easier for the first coin to increase 100 times in value to become worth $2,000 and have a market capital of $10billion than it will for the second coin to increase 100 times in value, become $50 a coin, but have a market capital of $100billion!
Market capital is a better indicator of potential future growth when comparing against other cryptocurrencies, than the value of the coin.
Market Capital of Decentraland
The market capital of Decentraland does vary based on the current price of the MANA cryptocurrency, but as of time of publishing it stands at $1.4billion.
So, MANA already has a decent size market capital for a cryptocurrency.
It is popular enough that many crypto investors have already bought in to the idea of the Decentraland Metaverse, and purchased MANA, but if the Metaverse is expected to take off in the way many speculators believe, a 1000x – or 100,000% – may not be out of the realms of possibility.
If Decentraland’s MANA did increase to $1000 it would make it the biggest cryptocurrency in the market by some considerable margin, far ahead of the Ethereum’s market capital, and considerably ahead of Bitcoin’s market capital.
It doesn’t completely discount MANA and Decentraland’s opportunity to reach a $1000 price, but there would need to be a sizeable shift in the current crypto investment market.
To understanding the influence market capital has on the potential of large-scale returns, it’s important to understand why market capital is so important.
Why Market Capital is Important
Current cryptocurrency price cannot be used as a determining factor as to whether it could potentially 1000x.
In fact, it is almost completely irrelevant.
For example, if crypto F has a current trading price of $2 but there are 300 billion coins in circulation it will have a much harder time increasing to $4 compared to the chances crypto G has increasing from $2 to $200 which has a current circulation of 50 million coins.
This is because of the amount of money within the overall market and the amount already invested in to the crypto.
In the example above crypto F already has a valuation of $600billion, which would make this crypto the most valuable on the market.
Whereas crypto G only has a valuation of $100million.
If crypto F began to gain traction and started to see substantial gains, the market would shift and potentially sell their holding of crypto F in exchange for crypto G, seeking a higher return.
Just 10% of the amount held of crypto F being sold off and moving into crypto G would see crypto G increase 10,000%, or 100x.
On the other hand, all holders of crypto G could sell and move this amount in to crypto F, and crypto F would increase by just 0.1%.
Therefore, a cryptocurrency with a much smaller market capital has a much better opportunity of increasing significantly if demand increases, and money moves across from other cryptocurrencies.
To understand whether Decentraland MANA can reach $1000 let’s compare its market capital with other cryptocurrencies.
Decentraland MANA Market Cap vs Other Cryptocurrencies
Here is a table showing how the Decentraland MANA cryptocurrency compares to other top coins such as Bitcoin, Ethereum, Solana Dogecoin, Shibu Inu, Polygon MATIC and The Sandbox:
| Cryptocurrency | Market Value |
|---|---|
| Bitcoin | $451 Billion |
| Ethereum | $205 Billion |
| Dogecoin | $12 Billion |
| Polygon MATIC | £10.9 Billion |
| Solana | $9.1 Billion |
| Shibu Inu | $8.1 Billion |
| Decentraland MANA | $1.4 Billion |
| The Sandbox | $1.1 Billion |
For Decentraland to reach $1000 it would need a market capital the size of $1.4trillon and become the largest cryptocurrency on the market by some considerable margin.
Unless more money entered the market it would require a significant reduction of both Ethereum and Bitcoin to push Decentraland anywhere close to this size in value.
Although for most cryptocurrencies this is unlikely without a significant announcement or shift in the industry, the Metaverse is often quoted as being the next version of the internet and is expected hundreds of millions or even billions of users will join.
If this is achieved, and Decentraland emerges as the dominant Metaverse, reaching a valuation of $1.4trillion and reaching a $1000 price although very unlikely, isn’t completely impossible.
Could Decentraland Reach $1000
If Decentraland becomes the market leader of the Metaverse industry, and supersedes both Sandbox and Meta, then it is very possible investments could move from other cryptocurrency, or even stocks and shares, and increase the market capital of Decentraland which could see the price of Decentraland reach $1000.
The Metaverse industry is incredibly early with only a few hundred visitors a day. This would need to increase to hundreds of millions and become the new version of the internet where people spent time and more importantly money.
There is speculation here and increasing 1000x is not going to happen overnight, and probably will take close to 10 years, but studying the Decentraland’s market capital compared to other crypto, and the money invested in the cryptocurrency already, it is at least possible.
