The hype of the Metaverse has certainly abated significantly in the past two months as the market collapsed twice, and folks like Decentraland are on the receiving end of this bearishness.

The Metaverse token MANA is witnessing fear among its investors after a very long time and may cause a further drop in price.

Decentralized country in trouble

While this crash didn’t affect MANA as much as the May crash, which wiped out 57.4% of its value, the altcoin still fell 22.8%. MANA had recovered a significant portion of the May crash within 48 hours.

But the lack of investor confidence resulted in a gradual drop in price, with the altcoin trading at $0.81 at the time of writing.

Price promotion Decentraland | Source: TradingView – AMBCrypto

This trembling confidence is evident in the fact that for the first MANA, long-term holders panicked and moved around their business. As a result, they ended up destroying 17.79 billion days.

A move as significant as this one was last noticed in October 2021, when the same LTHs destroyed 45 billion days.

Decentraland LTH supply movement | Source: Santiment – ​​​​AMBCrypto

Although last time this reaction was due to FOMO panic and not loss caused panic as MANA was up 375% in a 3 day time frame (ref. Decentraland price action image).

This is verified by the transactions executed in these two cases.

In October 2021, MANA noted that most of its trades were executed at a profit, with volumes reaching $670 million, while this time the trades were mainly loss-making, albeit with much lower volume at $88 million.

Decentraland transactions in losses | Source: Santiment – ​​​​AMBCrypto

In addition, the declining value of the Metaverse is also becoming more apparent by the day. The value of a single plot of land in Decentraland was worth $6,170 in February, while the average value was $3,420 this month.

This is the lowest average value Decentraland has seen since its launch in 2020.

Decentraland LAND parcel average cost | Source: Dune – AMBCrypto

So MANA is as dependent on the broader market cues as it is on the Metaverse to recover in the future to recoup $1 and rise further.

This post Why are Decentraland? [MANA] investors panic for the first time in eight months

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