CNBC contributor Brian Kelly has named three altcoins in the metaverse sector of cryptocurrency that he’s bullish on.
Kelly, who is also the CEO of crypto investment management firm BKCM, says that Bitcoin now trading separately from many of the big names in the digital asset space. To get the big gains this year, he’s got his radar locked on the metaverse.
The analyst says he’s been long Decentraland (MANA), Axie Infinity (AXS), and The Sandbox (SAND) “for a while now.”
Starting with Axie Infinity, Kelly says the popular blockchain-based video game has a strong network effect that could bode well for it this year.
“It really came on to the scene this year like gangbusters. And it’s all about network effect. As long as this game continues to grow, the value of the underlying currency [AXS] will grow with that network.”
Looking at SAND, Kelly says that as The Sandbox’s virtual world grows, the token will “tend to grow with it to service the underlying economy.”
As for Decentraland, the analyst says that the virtual world is a “alot more what we think about when we talk about the metaverse.”
“In Decentraland, you can buy real estate, you can buy shop fronts, you can do a lot of different things virtually. And the currency of that virtual world is MANA…
And again, about network effect, just like Facebook grew, the price of Facebook stock grew. As these networks grow and as these virtual worlds grow, the underlying currency needs to grow to service that underlying economy.“
Each altcoin Kelly is bullish on is already up thousands of percent over the last year, according to data from CoinGecko. In the past 365 days, Axie Inifinity is up 16705.3%, The Sandbox is up 13635.6%, and Decentraland is up 3868.2%.
— CNBC's Fast Money (@CNBCFastMoney) December 28, 2021