​​Decentraland (MANA) price prediction: Will the price rebound?

By  Yoke Wong

Edited by Vanessa Kintu

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​​Decentraland (MANA) price prediction: Will the price rebound? Decentraland crypto currency digital payment system blockchain concept. Cryptocurrency isolated on earth night lights world map background. Vector illustration
​​Decentraland (MANA) price prediction: Will the price rebound? Photo: karnoff / Shutterstock.com

Virtual reality cryptocurrency Decentraland’s MANA prices crashed to a six-month low over the past month as security issues on the digital platform dimmed outlook for the project.

On 3 May, Decentraland said it had fixed a security issue related to its digital platform’s LAND contract, which was reported on 12 March. A security researcher reported a critical vulnerability of Decentraland’s LAND smart contract, which allowed anyone to transfer LAND without the asset’s owner permission.

According to Decentraland, this issue was fixed within two hours of it being confirmed and all assets are safe. The Decentraland Foundation, which operates and maintains the project, conducted two audits of the LAND smart contracts to ensure the issue was resolved.  

The LAND contract is crucial in verifying transactions of virtual properties on the digital platform. Severe security breaches could lead to theft of assets.

MANA is the utility coin for Decentraland, an Ethereum blockchain-based metaverse. The Decentraland cryptocurrency was trading around $1.2234 on 9 May, down 47.2% from a month ago. It has dropped 8% compared with the same time last year. 

The MANA coin value has been falling since hitting an all-time high at $5.80 on 25 November 2021.

Are you interested to learn more about Decentraland coin future price trend, outlook and analysts’ predictions? Read this analysis for the latest Decentraland (MANA) news and developments in this metaverse.

What is Decentraland (MANA)?

According to the project’s whitepaper, Decentraland is a decentralised virtual reality platform powered by the Ethereum (ETH) blockchain. 

“Unlike other virtual worlds and social networks, Decentraland is not controlled by a centralised organisation. There is no single agent with the power to modify the rules of the software, contents of land, economics of the currency, or prevent others from accessing the world,” said Decentraland.

The platform, co-founded by Ariel Meilich and Esteban Ordano in 2015, was launched in 2017 following a $24m initial coin offering (ICO). It was opened to public users in February 2020.

MANA, an ERC-20 token, is the Decentraland utility currency. Users can buy and sell digital land, goods and services using the MANA coin.

​​Users can purchase the limited land in this virtual reality world and develop assets into real estates. This in turn creates a hub and drives creation of content and services.

“With scarce land, developers can acquire users by purchasing land in high-traffic areas. This will allow secondary markets to develop around land ownership and rentals, as is already happening on district0x.io,” said Decentraland.

According to Decentraland, unclaimed land can be purchased at the same exchange rate (1,000 MANA = 1 LAND). Property owners can trade at different prices on a secondary market in the virtual platform. After the purchase of land with MANA tokens, the currency will be ‘burned’ and a new entry in the LAND registry created. 

Decentraland is governed by a decentralised autonomous organisation (DAO), where MANA token holders control the agenda and vote on policies, such as rules governing land auctions and what types of content are allowed. 

“There are no technical specifications to what could be built in Decentraland.”

Users can create advertisements, digital collectibles and interactive games – “other use cases could emerge, such as training and professional development, education, therapy, 3D design, and virtual tourism, among others.”

Operating costs and challenges

Decentraland is not hosted on any centralised server infrastructure. Content is distributed on a decentralised peer-to-peer (P2P) network. 

“This decentralised distribution system allows Decentraland to work without the need of any centralised server infrastructure. This allows the world to exist as long as it has users distributing content, shifting the cost of running the system to the same actors that benefit from it,” said Decentraland.
Users of the Decentraland P2P network are self-funding out of goodwill to cover the cost of hosting the files and platform bandwidth.

The project plans to implement a protocol to cover infrastructure costs in the future, and use the proceeds of MANA token sales to cover costs in the long term.

MANA token information and new development

According to CoinMarketCap, there are 1.84 billion MANA tokens in circulation. In all, 40% of the MANA supply was sold during the 2017 ICO, 20% was reserved to incentivise the community, 20% went to the development team and other early contributors, and the remaining 20% was held by Decentraland. 

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As transactions on Decentraland are backed by Ethereum blockchains, they incur a fee that is paid in ether. This is referred to as a ‘gas’ fee. The higher the gas fee, the faster the transaction will get processed by miners. If the offer gas price is below market level, the transaction could go unprocessed.

Additionally, Decentraland is working with Matic to create a sidechain with cheaper and faster transaction processes. The benefits of using a sidechain are that events occur closer to real time and at a very low cost. However, Decentraland advised its users to use the more secure Ethereum chain for more valuable transactions.

As of early  2022, Decentraland launched more features on its platform, such as the marketplace ‘My Store’, where content creators can “manage their assets, collect and analyse stats and data for their items over time.”  

Is MANA coin a good investment?

According to an unnamed contributor on Financial Horse: 

“If virtual reality takes off, a virtual world like Decentraland could replace Google as a search engine for content. As it is decentralised and built on a blockchain, developers can make serious investments in resources with the security that no centralised entity can suddenly change the rules of the platform.”

Following social networking site Facebook’s rebrand as Meta to focus on the metaverse, many technology companies have made major investments in the virtual reality platform. For example, Microsoft has rolled out Mesh for Microsoft Teams, which “allows people in different physical locations to join collaborative and shared holographic experiences”.

Does Mana crypto have a future? As major technology companies joined in the development of the metaverse, many investors held high expectations for Decentraland and Mana coins. However, with a large volume of the coin held by whales, the prognosis of the project could be driven by big investors.

According to data by Cryptocurrency analytics provider IntoTheBlock, big investors’ holdings of MANA coins account for 51% of the cryptocurrency’s total circulation. 

“Whales have highly dominated the Mana network. Around 51% of the total circulation of Mana token is held by the whales (14). Therefore, a fear of Mana hitting the rock bottom will always remain in case of Whales pulling out,” wrote Crowd Wisdom in March 2022.

Decentraland price prediction 2022-2025

Decentraland (MANA) price chart

As of 10 May, despite the mixed outlook for the project, forecast data provider Price Prediction’s MANA price prediction was bullish. It projected the price to rise sharply in the next few years.

The average MANA/USD price was expected at $3.38 in 2022, $4.91 in 2023, $7.13 in 2024, $10.77 in 2025, $15.19 in 2026, $22.29 in 2027, $33.67 in 2028, $49.40 in 2029, $67.71 in 2030 and $97.43 in 2031. 

In contrast, TechNewsLeader’s MANA forecast was less bullish, expecting the price to reach $1.53 in 2022, $2.35 by 2023, $3.35 in 2024, $4.73 in 2025, $6.67 in 2026, $9.69 in 2027, $13.94 in 2028, $19.30 in 2029, $28.31 in 2030 and $39.95 in 2031. 

When looking at crypto price predictions you should remember the market is very volatile. Forecasts are based on inferences drawn from the past performance by analysts. They can be wrong. Investors should also consider the token’s collaborations, partnership deals and fundamentals. You should do your own research, gauging how comfortable you are with the risk. And never invest money that you cannot afford to lose.

FAQs

Price Prediction’s Decentraland (MANA) crypto price prediction had the coin rising in the next decade, reaching $97.43 by 2031. While TechNewsLeader expected MANA to be mostly stable in 2022 and climb to $39.95 by 2031. Note that analysts’ predictions can be wrong and have been inaccurate in the past. 

As of 10 May, Price Prediction and TechNewsLeader expected that Decentraland token price could exceed $10 by 2025 and 2028. However, analysts’ forecasts can be wrong. Always do your own research before investing.

According to CoinMarketCap, there are 1.84bn MANA tokens in circulation. It’s unclear what the supply cap of tokens is.

Price Prediction’s MANA price analysis expected the average price to reach $22.29 by 2027. TechNewsLeader forecast the price to hit $10.38, However, analysts’ forecasts can be wrong and have been inaccurate in the past. Always do your own research before investing.

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