Bitazza Crypto Weekly: Metaverse Revenue Could Grow To $400 Billion By 2025 -

Crypto Weekly: 29 November – 5 December 2021

Leading Digital Asset manager Greyscale released a report examining the potential future of the Metaverse last week titled “The Metaverse. Web 3.0 Virtual Cloud Economies” that analyzed the opportunities in the emerging interconnected virtual world for early investors.

One area of Grayscale’s report focused on Decentraland, the rapidly growing virtual platform built on Ethereum powered by the MANA token. MANA is used by players exchange for goods and services hosted within Decentraland and is also burned in exchange for Land parcels on the Decentraland metaverse.

Grayscale goes on to say that they can see revenue from all the virtual gaming worlds that comprise the multiverse growing to $400 billion in 2025, from around $180 million in 2020. The burgeoning growth of money invested in the Metaverse and increasing opportunities for monetization within the Web 3.0 infrastructure hints at the emergence of a fully-fledged virtual economy complete with goods and services.

The recent surge in NFT Game tokens like SAND, MANA, and GALA and their ability to outperform the rest of the market over the past week indicates that Crypto investors are heavily interested in the Metaverse trend and is a positive sign of potential growth for the entire sector moving forward.

Meanwhile, Nayib Bukele, President of El Salvador, announced that the country purchased an additional 100 BTC for their treasury following Bitcoin’s crash to $54,377. Currently, El Salvador holds approximately 1,220 BTC in its treasury. This latest round of BTC acquisition by El Salvador (worth around $5.4 million) brings the total value of El Salvador’s Bitcoin holdings to over $70 million currently.

Data from analytics website Watch The Burn has revealed that more than 1 million ETH has been burned since EIP-1559 took effect on Ethereum in August earlier this year. Since the London hard work, the network has removed over $4.3 billion worth of Ether from circulation. Despite this significant reduction in circulating supply, Ethereum is still a net inflationary currency and not truly deflationary yet.

Similarly, Layer 2 analytics platform L2beat has reported that the total value locked (TVL) across Ethereum Layer 2 networks has more than doubled over the past months, hitting a new all-time high of $5.64 billion. Since October alone, Layer 2 TVL has surged by 110% from $2.68 billion to its current levels.

Finally, Crypto analyst PlanB has admitted that his $98,000 November Bitcoin price target will likely be the worst-case scenario/Floor Model’s first miss. PlanB’s prediction model has been accurate since August; however, BTC will have to surge by 65% to hit the price target set by the Floor Model. However, PlanB notes that despite the Floor Model likely missing this month, his Stock-to-Flow model is unaffected, and prices are still on track towards the $100,000 level

Weekly Technical Analysis: 29 November – 5 December 2021

Bitcoin (BTC)

BTC has corrected to a low of $53,500 before showing signs of stabilizing. If BTC’s support can remain intact, the market leader may rebound and go on to target resistance at $60,000. BTC will have to successfully challenge its resistance level for the short-term trend to see an upwards reversal. However, regardless of how BTC performs this week, the overall big picture of Bitcoin remains bullish.

Ethereum (ETH)

ETH is sending strong recovery signals, with Ethereum consistently creating higher lows entering this week. Support is set at the $4,000 level, and ETH will look to test resistance at $5,000. The long-term outlook on ETH remains bullish; however, ETH will have to break through its resistance to enter a short-term uptrend this week.

The Sandbox (SAND)

SAND has rallied by over 85% since last week’s correction. Support is set at 200 Baht, and SAND will look to challenge the short-term resistance at 280 Baht on the way to a medium-term target at the 320 Baht level.

Curve Finance (CRV)

CRV has rallied by more than 30.9% in the past week following the market correction. If support at 160 Baht can remain intact, it could be a good opportunity to enter a position on CRV as it attempts to return to its previous high at the 220 Baht level.

Trading and Investment Considerations For The Week

Growing fear arising from news regarding the new Omicron COVID variant has had noticeable effects on markets across the board. Gold prices have edged higher as uncertainty surrounding the COVID variant managed to offset a stronger Dollar.

This week traders are advised to keep a close eye on how Bitcoin prices move in the coming days. If Bitcoin and the market can stabilize, NFT Game tokens, Blockchain Infrastructure tokens, and other altcoins may continue to rally this week.

Because of their particularly strong performances recently, traders are advised to exercise caution when trading some NFT Game tokens like SAND and GALA that have already had dramatic price surges. In contrast, MANA has had a less prominent rally and could have a higher upside and lower risk compared to GameFi tokens that could already be peaking.

The US stock market tends to perform relatively well during December, with many dubbing the phenomena the “Santa Claus Rally,” citing increased holiday shopping, greater optimism during holidays, and institutional investors settling books before going on vacation as potential factors behind the generally bullish performance of the market during the last weeks of the year. The anticipated rally should help support a Crypto market recovery in December, assuming BTC doesn’t fall past the $50,000 level and is able to maintain its bigger picture uptrend.

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