Wall Street's bullish take on the metaverse fuels big moves in these 3 cryptocurrencies today

The metaverse may be a virtual space, but it's providing very real returns for investors.

| More on:
bull market encapsulated by bull running up a rising stock market price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The metaverse trend is one that appears to have some real legs. Today, top metaverse cryptocurrencies Decentraland (CRYPTO: MANA)Alien Worlds (CRYPTO: TLM), and The Sandbox (CRYPTO: SAND) each appear to have regained lost momentum. 

As of 2:15 p.m. ET, Decentraland, Alien Worlds, and The Sandbox appreciated 8.7%, 3.1%, and 3.8%, respectively, over the past 24 hours.

So what

The metaverse is a generic term to describe virtual worlds. These cryptocurrencies each provide exposure to metaverse games, built on top of (or in combination with) blockchain technologies. Accordingly, investors bullish on the future of the metaverse, as well as the direction crypto is headed, will like the double-dip of aggressive growth exposure these digital tokens provide.

A number of Wall Street analysts have jumped on the metaverse as a place to invest. While most of the Wall Street coverage of the metaverse is restricted to stocks such as Meta Platforms and Roblox, the overall thesis boils over to the crypto sector as well.

Analysts believe that the metaverse could be a major disruptive force, perhaps far in excess of what the market is pricing in today. Visualizing the future of internet-based communication is difficult. However, the growth of virtual economies is staggering, and something analysts are keeping a close eye on.

Now what

The idea of having a second place to engage, communicate, and transact with other individuals is something that's enticing to many. Given the tailwinds provided by the pandemic, there's a reasonable amount of optimism baked into metaverse-related stocks or cryptocurrencies.

Much of this sentiment relates to the future growth of digital assets being traded on the metaverse. Whether it's NFTs or digital real estate, there's money to be made in grabbing a piece of what could be "reality 2.0."

It's perhaps easy for some investors to brush off blockchain-based metaverse games and crypto tokens as likely to lose out to companies like Roblox and Meta. Maybe that's a fair assessment. However, for now, investors appear content to hedge their bets and grab a slice of this entire sector. Personally, I think the metaverse in its entirety is likely to remain a hot commodity for some time. Accordingly, there's no doubt investors will be keeping a close eye on these three tokens for the foreseeable future. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Chris MacDonald has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Meta Platforms, Inc. and Roblox Corporation. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

US economy and sharemarket with piggy bank
International Stock News

What on earth is going on with the US stock market?

Let's dive in and see.

Read more »

A graphic illustration with the words NASDAQ atop a US city and currency
International Stock News

Why Big Tech became a huge wreck across the Nasdaq last night

Jerome Powell and his compadres shocked the market with an unexpected outlook.

Read more »

a man sits at a bar leaning sadly on his basketball wearing a US flag sticker on his cheekbone near a half drunk beer and looking despondent as though his basketball team has just lost a game.
International Stock News

The Dow Jones is on its longest losing streak in 46 years. What's going on?

The Dow is on a losing streak in the middle of a boom.

Read more »

A person leans over to whisper a secret to a colleague during a meeting.
International Stock News

Despite recent news, analysts still say Nvidia stock is a buy. Here's why

Last month, Nvidia was the most valuable company in the world.

Read more »

A young girl looks up and balances a pencil on her nose, while thinking about a decision she has to make.
International Stock News

After gaining 2,100%, is Nvidia stock done?

Nvidia has taken off as one of the key players in chips and services for artificial intelligence.

Read more »

A young couple in the back of a convertible car each raise a single arm in the air whilst enjoying a drive along the road.
International Stock News

Why Tesla stock just jumped again

Wedbush's Dan Ives thinks the stock will keep moving higher thanks to Tesla's self-driving technology.

Read more »

An older couple hold hands as they bounce happily high in the air.
International Stock News

Why the Alphabet share price just leapt higher

Investors seem to hope the Trump administration will be friendly to Alphabet and its big-tech peers.

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
International Stock News

Top Wall Street analyst calls Tesla stock a top pick. Is it a buy now?

Tesla shares have been on fire lately, rising more than 70% since the November 5 election.

Read more »