What is MANA? Understand its role in the Metaverse

In the rapidly evolving world of cryptocurrency, there is often one question that arises: What is MANA? As the cornerstone of the Metaverse and blockchain games, MANA is Decentraland The native token, which is a decentralized virtual reality platform built on the Ethereum blockchain. This article explores what MANA is, how it works, and why it has attracted investors’ attention in recent market trends.

Whether you are a cryptocurrency novice or an experienced investor, understanding MANA may open exciting opportunities for you in the digital economy.

link">What is MANA? Quick Overview

MANA is an ERC-20 token that powers Decentraland, a user-owned virtual world where individuals can buy, develop, and monetize digital real estate known as LAND, as well as create immersive experiences like games, art galleries, and social activities.

Imagine a digital universe that combines creativity and business, managed by a decentralized autonomous organization (DAO). MANA is the currency used for transactions in this Metaverse, supporting the purchase of LAND, in-game items, and services. It also grants holders voting rights in the Decentraland DAO, allowing them to influence the platform’s future.

Decentraland was launched by founders Ariel Meilich and Esteban Ordano in 2017, raising $26 million through its initial coin offering (ICO). Today, it has become a leading Metaverse project, partnering with brands such as Samsung, Tommy Hilfiger, and the Australian Open. By early 2025, MANA’s trading price ranged from $0.29 to $0.46, with a market capitalization of approximately $560 million to $853 million, ranking among the top cryptocurrencies.

How does MANA operate in Decentraland?

The Decentraland ecosystem revolves around two core tokens: MANA and LAND. Here’s how MANA drives the platform:

• Purchase LAND: LAND represents virtual real estate in the Decentraland Metaverse, with each parcel being a non-fungible token (NFT). Users acquire LAND by burning MANA, reducing the token supply in circulation and potentially increasing its scarcity. Since 2021, over 600 million MANA tokens have been burned through LAND auctions.

• In-game transactions: MANA is the currency used to purchase digital goods and services such as avatar wearables, NFTs, or event tickets on the Decentraland marketplace.

• Governance Holding MANA gives voting power in the Decentraland DAO, allowing users to propose and vote on platform policies, LAND auction rules, and content guidelines to ensure community-driven development.

• Monetization Opportunity Users can rent out their LAND, host events, or create paid experiences to earn MANA. Content creators also sell NFTs in the market, increasing the utility of MANA.

Decentraland’s Metaverse has 90,601 LAND parcels, which is a 3D environment for exploration, socializing, and building. Its Ethereum-based infrastructure ensures transparency and security, with smart contracts managing ownership and transactions of LAND.

cryptocurrency market?" class="reference-link">Why is MANA so important in today’s cryptocurrency market?

In early 2025, the crypto market shows new enthusiasm for the Metaverse and gaming tokens, with MANA standing out. Investors have noticed its approximately 100% surge at the end of 2024, thanks to the growing adoption rate and the Metaverse craze. The significance of MANA lies in several trends:

• Metaverse expansion: The Metaverse is becoming the center of work, entertainment, and socializing. Decentraland’s collaborations with major brands and events such as virtual music festivals position it as a leader.

• NFT integration The role of MANA in purchasing LAND and in-game NFTs aligns with the growing trend of digital collectibles.

• Decentralized Governance: DAO model has attracted investors who focus on community-driven projects, which sets it apart from centralized platforms like Second Life.

Despite its huge potential, MANA remains volatile. Its trading price fluctuates between $0.29 and $0.46, a 95% decrease from its peak of $4.16 in 2021, reflecting a market correction. Analysts are optimistic, with Coinpedia predicting that MANA could reach $5.15 to $6.17 by 2030 in a bull market, but also facing challenges from The Sandbox Competition and regulatory risks for the project.

How to trade MANA in the current volatile market

In early May 2025, Bitcoin fluctuated between $92,000 and $96,700, with altcoins such as MANA often reflecting its trend, but offering unique opportunities in volatile conditions. Drawing on Bitcoin‘s trading strategies, here are customized methods for trading MANA in the current market:

1. Range trading: taking advantage of price fluctuations

The price of MANA usually fluctuates within a range, similar to the recent range of $92,000 to $96,700 for Bitcoin. Support is found around $0.29 (recent low) and resistance is found around $0.61 (high in 2024). Buy near support when RSI drops below 30 (oversold), and sell near resistance when RSI exceeds 70 (overbought). Set stop-loss orders 2%-3% below support to mitigate sudden downside risks.

1. Breakthrough trading: Go with the trend

Breaking above $0.61 accompanied by strong volume may indicate a bullish trend, potentially pushing MANA to $0.74. Wait for confirmation, then re-enter if it falls back to $0.53. Conversely, dropping below $0.29 may lead to a decline to $0.20, providing a shorting opportunity. Use stop-loss orders to limit the risk of breakthrough failure.

1. Trend Following: Using Technical Indicators

Technical indicators such as VLMA (Variable Length Moving Average) and MACD help capture short-term trends. MANA suggests buying when MACD bullish crossover occurs above VLMA, and selling when bearish crossover occurs. Fear and Greed Index is also useful - buy when below 20 (extreme fear), sell when above 80 (extreme greed), which is a common strategy used by crypto investors.

1. Risk Management: Maintain discipline

Limit each transaction to 2%-5% of your investment portfolio to avoid significant losses. Diversify with other Metaverse tokens like SAND or AXS. Keep an eye on Decentraland’s partnerships or ETF developments, as these could trigger fluctuations. Recent analysis suggests that MANA may revisit the crucial $0.33 Fibonacci level, highlighting the importance of technical levels in altcoin trading.

The Future of MANA: Opportunities and Risks

The future of MANA depends on Decentraland’s ability to attract users and businesses to its Metaverse. With high demand for virtual land—some plots selling for millions of MANA—and the popularity of NFTs, the platform has strong growth potential. Changelly analysts predict that, under favorable market conditions, MANA could reach $1-1.2 by the end of 2025. However, risks include:

• Market fluctuations: CoinGecko reported that in the last week of early 2025,MANA priceDropped by 9%.

• Competition: The Sandbox and Axie Infinity Competing projects for dominance in the Metaverse.

• Regulatory uncertainty The ever-changing cryptocurrency regulations may affect the operation of Decentraland.

Conclusion: Is MANA worth paying attention to?

What is MANA? It is the lifeblood of Decentraland, a metaverse where users can create, trade, and manage virtual worlds. In the current volatile crypto market, MANA provides trading opportunities through range trading, breakout strategies, and trend-following tactics, similar to the $92,000 to $96,700 range of Bitcoin. With a market value of $5.6 billion to $8.53 billion and increasing metaverse adoption, MANA is an attractive altcoin for investors interested in virtual reality and NFTs.