The health of metaverse tokens amid crypto market decline

LAGOS (CoinChapter.com) — Today’s trading session marked a return to the bears for top cryptocurrencies as the global crypto market cap dropped by 3.6% to $1.3 trillion in the last 24 hours.

However, top metaverse tokens took a major hit as the leading metaverse assets, according to CoinGecko, registered significant losses. Notably, Axie Infinity (AXS), The Sandbox (SAND), Decentralannd (MANA), Enjin (ENJ), and Gala (GALA) suffered heavy losses on the day.

Data from CoinGecko indicated that the native token of the blockchain-based games Axie Infinity plunged by 10% on the day. AXS is currently trading at $20.8, shedding almost $200,000 million of its market cap in the last 24 hours.

AXS currently has a trading volume of 228.5 million with a market cap of 1.6 billion, down by 3%. The metaverse token also has a circulating supply of 80 million AXS coins and a total supply of 270 million.

Similarly, Sandbox’s SAND, the crypto market’s 47th-largest token with a market cap of $1.5 billion, dropped by 9.1%. Despite surging by over 5% to about $1.5 a few days ago, SAND failed to hold on to the rise plunging close to $1  at press time.

Notably, today’s bearish action put the metaverse token down 84% from its all-time high of $8.4 in November 2021. Additionally, SAND currently has a circulating supply of 1.2 billion SAND coins and a total supply of 3 billion.

It is worth noting that the entire metaverse market cap was down by 5% to $7.86 billion in the last 24 hours.

MANA, ENJ, GALA Suffered Heavy Loss

Similarly, other top metaverse tokens also suffered heavy losses in the past 24 hours. For example, Decentraland’s native token, MANA, is currently down by almost 10% on the day.

MANA fell to under a dollar on Tuesday after surpassing the $1 benchmark days ago. The metaverse token was over 80% down from its all-time highs attained in November at the time of publication.

Enjin Coin’s (ENJ) and Gala’s (GALA) price charts show a similar decline, as both metaverse tokens recorded double-digit losses.

ENJ prices dropped significantly with the entire crypto market, declining as much as 10% in the last 24 hours. GALA dipped to $0.0788 from $0.0804 in the same period. Both tokens plunged after slightly rallying alongside a recovery in the broader crypto market.

UST Collapse Responsible For Metaverse Tokens Drop

It’s worth noting that the collapse of TerraUSD has been credited for the decline in the price of metaverse tokens. Notably, the crash of UST and LUNA in the first half of May triggered a major decline in the entire DeFi sector.

Consistently, the stablecoin’s collapse has made investors question many projects, invariably pulling funds. In addition, the drop in non-fungible token trading volume over the past week also affected metaverse token prices.

Meanwhile, the broader crypto market was languishing, with a global market cap sitting below $1.3 trillion, down 2% on the day.

CoinGecko indicated that Bitcoin was down about 5% to $29,014.61. While Ethereum, the second-largest cryptocurrency by market cap, was down by more than 6% and trading at $1,934.88.