Crypto is off to a rocky start in 2022, down 14% to $1.9 trillion so far this year. While no one knows when the sector will recover, now could be a good time to buy quality assets at a discount. Let's explore why land ( MOON 0.87% ) Y Decentraland ( MANNA -0.93% ) could make great additions to your portfolio.
1. land
Terra is a blockchain platform designed to facilitate stable coins, which are crypto tokens pegged to the value of real-world currencies, such as the US dollar or the euro. With a market capitalization of $29 billion, the asset is wildly successful. And its unique design could help you keep attracting users.
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Crypto assets are ideal for people who value financial privacy and decentralization. But they come with a downside: volatility. While the sector has been on a long-term uptrend, it has been a wild and bumpy ride. Terra stablecoins help solve this problem.
The network has two classes of native tokens: TERRA and LUNA. TERRA represents a set of stablecoins pegged to real-world currencies. LUNA is a companion token designed to absorb the volatility of stablecoins, meaning it grows based on platform acceptance. Terra's easy-to-understand and practical use cases position it for long-term success in the competitive cryptocurrency industry.
2. Decentralization
Described as interconnected virtual realities, the metaverse could revolutionize the way we use the Internet. Decentraland is helping to pioneer this concept through blockchain technology. And his pioneering advantage and impressive real-world associations position him for long-term success in this exciting opportunity.
According to analysts at Bloomberg Intelligence, the metaverse could grow to be an $800 billion market by 2024, spanning games, live entertainment, and social media. Blockchain technology is well suited to this industry because its native tokens can serve as in-game currencies, while non-fungible tokens (NFTs) serve as digital proof of ownership, setting the stage for a dynamic virtual economy.
Launched in 2020, Decentraland is one of the first cryptocurrencies to explore the development of the metaverse. Its platform comprises 90,601 plots of virtual real estate called LAND, where individual users can customize games and other experiences.
So far, Decentraland has attracted a few high-profile partners, including the fast-fashion giant. forever 21, which opened a temporary store in its metaverse at the end of March. Decentraland also partnered with Samsung to create a virtual space modeled on one of their stores. While these big companies are likely just testing the waters, it could be the start of a more expansive push towards more complex metaverse offerings.
Which asset is best for you?
Terra and Decentraland are great ways to bet on a crypto bounce, but they serve different investment strategies. As the ninth largest cryptocurrency, Terra is an established platform with a widely adopted use case that could give it long-term stability. On the other hand, Decentraland (the 33rd largest crypto) is likely at an earlier stage of its development, giving it more room to grow with potentially higher risks.
This article represents the opinion of the writer, who may disagree with the Motley Fool premium advice service's "official" recommendation position. We are motley! Questioning an investment thesis, even one of your own, helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
