NFT tokens appear to have run out of steam after a groundbreaking rally in October and November. Currently, the NFT space bears a total market cap of $62.892 billion with a 4.08% loss over the past 24-hours. Besides, the NFT sales volume dropped by 24.10% over the past 24 hours.
NFTs and Tokens based on Metaverse such as Axie Infinity (AXS), The Sandbox (SAND), and Decentraland (MANA) appear to have exhausted post the phenomenal rally in October and November. The aforementioned tokens are currently trapped in a range-bound scale, yet they need to break out to compete with other traditional cryptos.
Axie Infinity (AXS):
Axie Infinity (AXS) price has been stuck around a range-bound scale between $98 to $110 over the past month. In addition, it appears that the platform is undergoing a critical drop in daily Axie sales. A chart from Cryptoslams confirms that Axie NFTs’ daily sales plummeted to a mid-July level. Further, the number of daily active addresses is inferior to 300k, a devaluation of over 70% since the peak.
However, AXS’s price is still well below 40% from its previous ATH. At present, the token is trading at $103.5, if it falls below 20 days MA at $100 then the price would further move southwards. The major bottom for the asset lies around $63 if it fails to sustain around $90.
The Sandbox (SAND):
The Sandbox (SAND) price has been trading at $6.15 with a 6.42% drop in 24 hours. The protocol has experienced a massive surge of over 1000% in its October rally. However, the asset seems to be undergoing requisite correction after being exhausted from its previous rally. December has turned out completely bearish for the asset in terms of price action and sales.
The above chart indicates the drastic drop in the SAND’s sales volume along with price drop. However, if it undergoes a prolonged depreciation then it would even plummet below $5.
MANA’s price has been trading within the $3.5 range since the start of December. However, there has been a steep fall in sales volume since mid-November. Sales levels are back to the initial levels that were before Facebook’s trend reversal to Meta.
However, as there have been rising bearish sentiments the MANA price would continue to correct below $2.5.
Collectively, tokens based on NFTs and Metaverse are undergoing a sharp correction, which seems to require months of time to bounce back. Besides, other traditional cryptos based on DeFi are slowly exhibiting signs of bull rally ahead of the new year. A portion of traders argues that the profits of Metaverse and NFTs are now moving to DeFi. Hence, the next couple of weeks would play a decisive role in terms of whether DeFi will boom or NFTs gaming.