Cryptocurrencies occasionally experience periods when volumes decline and prices are constrained to a specific range. Since June, MANA has been mired in this stage. As a result, it has had trouble rising above its lowest range.
During the downturn phase, MANA has seen very little whale and institutional engagement. This is frequently the case when volumes drop, and it is one of the main contributors to insignificant price movements.
The performance of MANA was additionally aggravated by the subdued performance of its native platform. Its transaction volumes peaked on July 27 at 59.57 million, followed by a sharp descent over the following weeks.
At 3.24 million, it recorded its lowest 4-week transaction volume on 13 August.
A decrease in the number of active addresses was another sign of the weak network activity. The number of active addresses peaked at 2,611 on July 21 and a dropped by more than a third to 854 on August 13.
Decentraland has been working hard to increase network engagement.
The decrease in network activity revealed the need to increase the project’s allure as a metaverse endeavour. Despite everything, the project sits at a market cap of over £1.65 billion.
Investors in MANA are still holding on to their asset in large numbers. In the last four weeks, the 180-day mean dollar invested age increased steadily and peaked at 977.23.
The 180-day mean coin age decreased around the end of June as a result of some profit-taking. However, its return to 72.25 at press time highlights the retail investors’ intention to HODL.
Low volumes are not uncommon for a cryptocurrency when network growth and organic demand are badly impacted.
This may account for the recent decline in institutional demand and low whale population. However, the majority of the top cryptocurrencies by market cap have already seen enough upside and no longer have much room for expansion.
Therefore, MANA will soon be on the radar of institutions and whales searching for the next big opportunity.
Due to a limited upside, the token is still considerably closer to its bottom than most top cryptocurrencies.
At the time of writing, the altcoin’s 90-day MVRV ratio was 14.22%, which suggests that those MANA holders who bought the bottom are already profiting.
In contrast to some of the leading coins in terms of performance over the past month, the statistics are still modest.
Given that the metaverse is still in its infancy, MANA’s steep discount is a good opportunity for long-term investors.