These 4 Metaverse Cryptocurrencies Plunged More Than 14% Today
As of 12:15pm ET., four of the biggest metaverse-related cryptocurrencies absolutely nosedived. The Sandbox (CRYPTO: SAND) and Enjin Coin (CRYPTO: ENJ) both led the way with declines of 17.1% over the past 24 hours. Axie Infinity (CRYPTO: AXS) and Decentraland (CRYPTO: MANA) followed suit, each declining 14.1% over the past 24 hours as well.
A number of high-flying growth sectors of the market are down today, as investors take an increasingly bearish view of the overall market. As with recent declines in past weeks, cryptocurrencies and high-growth equities are moving in the same direction. Investors across both high-growth markets appear to be growing concerned that rising interest rates and increasingly hawkish monetary policy will hurt capital flows into more speculative areas of the market. Accordingly, investors are in sell mode today, with most major cryptocurrencies now down double digits from a percentage standpoint.
What do the metaverse and interest rates have in common? Not much. However, taking a broader view of the positive impact ultracheap money coursing through the veins of the financial system over the past two years, there's reason to believe that any sort of hawkish shift could mean the party's over.
The punch bowl hasn't been taken away yet, and there are still many who believe that the Federal Reserve will remain as accommodative as it can for as long as possible. However, given the rate of inflation we've seen of late, it's clear that something needs to be done to cool the economy. For red-hot growth stocks and high-flying metaverse tokens, that's not a good thing.
The metaverse appears to be less of a fad than a structural long-term trend that's here to stay. Accordingly, many long-term investors may be inclined to look at this sell-off as representative of an attractive buying opportunity. Generally speaking, I find myself in that camp.
However, there's also a growing likelihood that this sell-off could persist for some time. If that is the case, patient investors may want to stick on the sidelines for some time, or ease into positions slowly.
Undoubtedly, some sort of breather is healthy for these high-flying tokens. While many may look at this significant sell-off as a reason to avoid this sector in the near term, taking a longer-term view of where these metaverse tokens could be headed, these four Metaverse tokens may start to look too attractive to ignore.
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