The metaverse hype that began in 2021 almost completely dissolved by the end of 2022 when the major projects in the space, Decentraland and The Sandbox, lost 95% of their market capitalization. The most prominent reason for the drop was a lack of usage growth.

Still, the metaverse narrative is far from dead and will grow in the future. Apple will reportedly launch its VR headset sometime in the spring of 2023. The announcement was a positive catalyst for MANA and SAND, leading to double-digit price increases.

While there is evidence of positive buying volume supporting the pump, weak fundamentals on metaverse platforms and overheated market indicators suggest the price pump risks reversing quickly.

The Apple Pump and Dump

Facebook’s (Meta) foray into the metaverse was one of the most prominent…