Interested in NFTs and the Metaverse? 2 cryptocurrencies to buy and hold right now

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Non-Fungible Tokens (NFTs) are crypto assets that allow items such as artwork, video games, and other assets (real and digital) to be brought onto a blockchain. This utility has captivated investors. Consumers spent around $41 billion on NFTs in 2021, according to blockchain data provider Chainalysis.

Likewise, the Metaverse promises to be the next big technology platform, a network of immersive virtual worlds that will blend elements of entertainment, gaming and commerce, allowing users to engage with each other and environment. And NFTs fit perfectly into this technology. They help prove ownership and authenticity of assets, which will be critical in the metaverse economy.

With that in mind, many analysts believe the metaverse will become a multi-trillion dollar industry over the next decade, which could drive consumer demand for NFTs. For investors looking to profit from these trends, several cryptocurrencies are a perfect fit. Here are two excellent examples.

Image source: Getty Images.

1. Decentralization

Decentraland (CRYPTO:MANA) is a decentralized application (dApp) on the Ethereum blockchain. It features a virtual world inhabited by players and powered by the MANA token. Players can buy and sell digital plots of land through the marketplace, each with unique coordinates and wearable items like clothing, accessories, and body features for their avatars. In all cases, transactions are funded with MANA, and ownership of any item is represented as an NFT.

Players can also expand and monetize their digital territory with 3D content, games and other applications, and they can interact with other avatars through the virtual world. In short, Decentraland is sort of a precursor to what the Metaverse could be – it’s easy to imagine the platform as part of a larger network of virtual worlds in the future. But there is something to be excited about now. Decentraland currently ranks as the third most popular NFT collection by trading volume on OpenSea, which itself is the most popular NFT market in the world by a wide margin.

As users fall more and more in love with Decentraland – which seems likely given the excitement surrounding NFTs and the metaverse – demand for MANA is expected to increase. With a fixed supply of 2.6 billion tokens, the growing demand is expected to push the price up. This is why this cryptocurrency could be a good long-term investment, especially now that it has fallen more than 60% from its peak.

2. The sandbox

The Sandbox (CRYPTO:SAND) is another Ethereum-based metaverse game with NFTs. The platform is powered by the SAND token and includes three distinct services that allow players to create and monetize in-game assets and experiences.

Specifically, VoxEdit is a modeling tool that allows users to create and animate 3D objects like people, animals, and landscapes. These objects are represented as NFTs on Ethereum. Then the NFT market allows users to buy and sell these 3D objects using the SAND token. Each block of land is also represented as an NFT, and these tokens can be used for market transactions. Finally, the Game Maker product allows users to create monetizable games and experiences on their land without using computer code. Specifically, it is a suite of drag-and-drop tools used to position 3D objects and implement game mechanics.

Like Decentraland, The Sandbox has generated considerable interest in the crypto community and ranks as the eighth most popular NFT collection on OpenSea for the past month. And given the easy-to-use interface, not to mention the tailwinds behind NFTs and the metaverse, The Sandbox is well positioned to attract more players in the years to come. As this happens, demand for SAND – which has a limited supply of 3 billion tokens – is expected to increase, driving up its price. With the price of SAND down around 60% from its peak, now seems like the right time to add this digital asset to your portfolio.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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