Fundamental Analysis of Decentraland (MANA)

By David Idowu
9 Min Read

Metaverse is a notable concept in the crypto and blockchain sphere that has gained much attention of late. The initiative has attracted a host of investments from top firms in the industry, as the competition of being a Trailblazers of the metaverse gained more intensity. Decentraland is one of the platforms that aimed to establish itself as a force to reckon with in the metaverse space. This piece will provide a stern analysis of Decentraland and its position among other metaverse projects.

Decentraland is a virtual reality platform based on the Ethereum blockchain. The platform aids users to design, personalize, and commercialize their space (LAND). In this virtual world, users completely own the platform and its managed by a Decentralized Autonomous Organization (DAO).

Image via: Decentraland

Users have the total freedom to decide what to do with their LAND(s). The LAND is an NFT based on the Ethereum network. Like LAND, MANA is also another token on the platform, it is used to participate in Decentraland DAO and buy valuables on the platform. MANA is as well based on the Ethereum network.

With Decentraland, gamers enjoy access to interactive applications, peer-to-peer payments, and communication. Simply, the platform aids users to buy virtual properties and develop them like what is obtainable in the physical world. Also, the virtual reality platform aids gamers to establish businesses or even serve as a digital extension of their business.

Team Members and Background

The Decentraland is co-founded by Ariel Meilich and Esteban Ordano. The two founders are well-experienced as developers and entrepreneurs. Ariel Meilich before Decentraland, worked as an analyst at Charles River Ventures. Also, as a prominent entrepreneur, Ariel founded various startups like CRM, Big Time, and Benchrise.

Meanwhile, Esteban Ordano is prominent in the crypto space prior to the establishment of Decentraland. His experience as a tech lead saw him take up various stints at Bitpay and Polygon. Furthermore, he founded Smart Contract Solutions and Zeppelin Solutions.



According to findings, the total supply of MANA is 2,193,179,327 with a circulating supply of 1,878,271,532 MANA. Meanwhile, the initial supply of the token is pegged at 2.8 billion MANA. The LAND auctions have seen up to 600 million MANA burned. The figure is likely to plummet with time due to burning mechanisms that have been put in place. This mechanism includes a 2.5% MANA burn on every transaction on the Decentraland marketplace.

During the Initial Coin Offering of MANA, about 40% of the token were sold. More so, the team retained 20% to incentivize the community, while 20% of tbe token went to the development team and others that contributed to the project at its development stage. Lastly, 20% was as well held by Decentraland.

Use cases

The MANA token is essential for the running of Decentraland. The token can be used to purchase NFTs and Collectables on the platform. Also, various business ventures, galleries, and many other places on the Decentraland use MANA as a means of conducting payments for their businesses.

More so, MANA is used as the governance token of the platform. Primarily, holders of the are bound to enjoy the privileges of contributing to the development of the platform. Lastly, MANA can be utilized for advertising and development of brands on the Decentraland. This is possible through Billboard based NFT which are majorly utilized for advertising. Brands and corporate outfits on the platform will need MANA to purchase the Billboards.


Image via: Axie Infinity
  • Axie Infinity: Axie Infinity is another metaverse platform where gamers earn rewards based on their participation. On the platform, players can play against other players with their Axies. Also, they can as well play against AI-controlled Axies to earn reward. Also, these Axies can be traded on the in-game market place and even breed them to increase their opportunity of earning more rewards.
Image via: The Sandbox
  • The Sandbox: The Sandbox is a direct competitor with Decentraland. This is due to how they run on almost the same concept. As another Metaverse real estate, users can interact, build virtual structures and earn rewards by selling certain merchandise on the platform. Like MANA and Decentraland, Sandbox uses SAND as its native token.
Image via: Illuvium
  • Illuvium: Illuvium as another competitor against Decentraland has a similar concept to Axie Infinity. Players combat Illuvials with the intention of capturing them to battle other players. The game structure provides an option of combining Illuvials to make them stronger, putting their owners at an advantage during duels with other players. Lastly, these Illuvials can be traded as NFTs and the platform uses ILV as its utility token.

Future of the Coin

The future of MANA depends sorely on the success and adoption of Decentraland as a project. In the past, MANA has responded to the wide range adoption of Metaverse. Around August 2021, the token embarked on a bullish run as a result of the NFTs and Metaverse craze then.

However, there seems to be a slowdown in the patronage of Decentraland. This is due to the cooling attention on the Metaverse as a concept. For instance, in September 2022, only 1,074 wallets interacted with smart contracts on the platform. This figure indicates, how Decentraland hasn’t been receiving much attention of late.

The cooling interest in the metaverse has affected the price and market attention of MANA. Lately, the token has dipped drastically in terms of value and trading value, compared to what it enjoyed in 2021. To a reasonable extent, the future of MANA will be determined by the level of patronage of Decentraland.

Drawbacks or Weaknesses

Decentraland and MANA are battling tough competition due to the host of NFTs, Metaverse, and Play-to-Earn innovations that have flooded the crypto space. This competition tightened the air of attention against MANA, leaving the token to suffocate for utility.

Additionally, Metaverse as a concept is very much in a growing stage. Due to that, many are yet to fully understand how to properly utilize Decentraland, depriving MANA of more attention. To have a deep insight into the rudiments of metaverse and NFTs, read this article.

Another major setback to the utilization of Decentraland is the requirement for sophisticated technology to properly access the platform. All these are major factors militating against the project.

Our Takeaway

Indeed, opportunities and ideas in the metaverse are infinite. For one to tap into the available opportunities in the metaverse, one must have a good background knowledge of the concept. This article provides tips on how to become a master of metaverse.

The idea of carrying out numerous activities on the platform attracted more users to the platform at the height of the crypto boom in 2021. Since the last bear market, Decentraland hasn’t been able to command such authority again.

Both MANA and its native platform are presently struggling to gain more attention. Despite that diversion of attention on these projects, they both stand the chance for a prosperous future. That’s if they are able to adjust to the growing demands of the industry. Integrating innovations that are in high demand into the virtual world of the platform can drive more adoption. With that, Decentraland will attract more users, providing more utility avenues for MANA.

David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.