Decentraland Market Cap Plunged More Than $800 Million in May

Decentraland (MANA) Breaks out From 208-Day Resistance Line, Targets $2.65 as Next Resistance

Decentraland (MANA) was among the tokens that were hit hard during the market crash of May, seeing more than $500 million wiped off its market value. 

MANA is still among the 40 largest digital assets by market capitalization in June 2022. According to Be[In]Crypto Research, MANA closed May with a market capitalization of approximately $2 billion.

While this number seems impressive since it confers a medium-cap status for MANA, it was a 29% decrease from the market value on the first day of the month. On May 1, Decentraland saw an impressive trading volume of around $315.18 million, and this corresponded to a market capitalization in the region of $2.83 billion. 

Source: Decentraland (MANA) Historical Data by CoinMarketCap

Why the crashing market capitalization? 

Recession indicators such as the aggressive rising of interest rates, instability brought forth by regulatory hurdles, inflation, renewed interest in less volatile assets such as precious metals, bills, and bonds, and a plunge in the stock market saw MANA’s market cap fall to new lows.

In May, the number of large transactions involving MANA reached a peak of 272 at a price of $1.21 on May 14. 

Source: MANA Number of Large Transactions May 2022 Chart by Into the Block

During the month, the largest transaction volume involving MANA was 98.01 million.

Source: MANA Large Transactions Volume in MANA Chart by Into the Block

This corresponded to a total volume of approximately $74.43 million.

Source: Decentraland (MANA) Large Transactions Volume in USD Chart by Into the Block

On May 12, MANA opened at $0.7809, reached an intraday high of $0.8244, tested an intraday low of $0.6307, and closed the day at a trading price of $0.7081. 

The trading volume for the day was $564.60 million and this correlated to a market capitalization of $1.31 billion, a 53% decrease from the opening day’s market value. 

Due to the drop in price that saw MANA reach new high lows which were last tested in Sept 2021, the token could not reclaim its opening day’s price. 

MANA opened on May 1, at $1.43, reached a monthly high of $1.67, tested a monthly low of $0.6307, and ended the month with a trading price of $1.09. Overall, this represents a 23% decrease in the opening and closing price of MANA in May. 

Source: MANA/USD Chart by TradingView

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