CNBC contributor and CEO of digital currency investment firm BKCM Brian Kelly is naming three metaverse altcoins that he believes possess high potential in 2022.
In a new episode of Fast Money, Kelly says that the three altcoins will appreciate as their respective virtual worlds become more popular.
In the case of Decentraland (MANA), a virtual reality platform, Kelly says the crypto asset could rise in a manner replicating the upward trajectory of social media giant Facebook’s stock.
“In Decentraland, you can buy real estate, you can buy shop fronts, you can do a lot of different things virtually. And the currency of that virtual world is MANA.
And again, about network effect, just like Facebook grew, the price of Facebook stock grew. As these networks grow, and as these virtual worlds grow, the underlying currency needs to grow to service that underlying economy.”
Decentraland, which has appreciated by over 4,200% in the last 12 months, is trading at $3.38 at the time of writing.
Next up is Axie Infinity (AXS), a decentralized game universe where players can own, buy, sell and trade digital assets earned from their participation. According to Kelly, AXS will enjoy upside potential if the ecosystem keeps growing.
“This is a game, play-to-[earn]. It really came on to the scene this year like gangbusters. And it’s all about network effect. As long as this game continues to grow, the value of the underlying currency [AXS] will grow with that network.”
AXS is trading at $96.62 at the time of writing. The native token of Axie Infinity has shot up by roughly 18,000% over the past 12 months.
Next up is The Sandbox (SAND), a gaming ecosystem on the Ethereum blockchain where participants can share and monetize non-fungible tokens (NFTs) and gaming experiences. The CNBC contributor says that SAND will also rise as The Sandbox virtual world gains more popularity.
“As that [The Sandbox] network grows, the currency will tend to grow with it to service the underlying economy.”
The native token of The Sandbox, SAND, is trading at $6.10 at the time of writing. SAND has gone up by over 16,800% over the last year.
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