> ## Content Index > Fetch the complete content index at: https://research.glassnode.com/llms.txt > Use this file to discover other available public pages before exploring further. # Is the Metaverse Dead? On-Chain Data Tells a Different Story - URL: https://research.glassnode.com/cbd-metaverse-resurgence/ - Published: 2025-03-10T16:34:35.000Z - Updated: 2025-07-24T14:17:44.000Z - Description: Despite a prolonged downtrend in Metaverse tokens, CBD data reveals that major players continue to dollar-cost average (DCA) into these assets. - Author: Dustin Lamblin - Tags: Bitcoin Analysis & Research, Product & Research *This is the third article in our series exploring *Glassnode’s Cost Basis Distribution (CBD) metric* and its practical applications. Previously, we demonstrated *how to** [***apply CBD insights across assets***](https://research.glassnode.com/expanding-cost-basis-distribution-cbd-coverage-eth-erc20-spl/) *and *how to identify** [***capitulation events on a CBD heatmap***](https://research.glassnode.com/cost-basis-distribution-capitulation-metrics/)*.* For a deeper dive into the methodology and calculations behind this metric, refer to our [detailed research piece here](https://research.glassnode.com/unveiling-investor-cost-basis-on-chain/). This week, we introduce another **use-case-specific exploration** of CBD - analyzing **Metaverse tokens**. Despite declining prices and fading hype, **on-chain data suggests that major investors remain active**, steadily accumulating and lowering their cost basis. Does this signal a long-term bet on a Metaverse resurgence? Let’s first recap how to analyze and interpret CBD data and then apply that knowledge to the latest trends in Metaverse. ### Understanding Cost Basis Distribution **Cost Basis Distribution (CBD)** tracks where token supply is concentrated based on the **average cost basis of holders**. By analyzing **shifts in supply distribution**, we can identify investor behavior - whether they are accumulating, capitulating, or redistributing their holdings. **How to Read CBD Heatmaps:** - **Color Intensity (Supply Distribution)** A **warmer color (red/yellow)** indicates a high concentration of supply at a given price range, while **cooler colors (blue/green)** signal lower supply. - **Vertical Axis (Cost Basis)** Each horizontal slice represents **a price range where a portion of supply last moved**, showing how holders adjust their cost basis over time. Tracking these changes helps us pinpoint **potential market turning points**, where accumulation or distribution trends may signal future price movements. ## Metaverse Tokens: What Cost Basis Distribution Data Reveals In this analysis, we focus on **Metaverse tokens** \- **The Sandbox (SAND), Decentraland (MANA), and Axie Infinity (AXS)** \- which were among the most prominent assets during the Metaverse boom of 2021\. While the hype surrounding virtual worlds has faded, **we shift our focus away from user activity and instead examine investor behavior using Cost Basis Distribution (CBD) data**. Rather than evaluating adoption metrics or in-game activity, **we analyze how token holders have adjusted their positions over time**. Are they capitulating, holding steady, or accumulating at lower prices? By tracking supply shifts at different price levels, we gain insights into **how investor conviction has evolved in this post-hype phase** and whether accumulation trends hint at long-term confidence in these projects. ### The Sandbox (SAND): Steady Accumulation in a Bear Market Despite price volatility, **on-chain data shows continued accumulation**. Holders with strong conviction are steadily increasing their positions, reinforcing their belief in the project's long-term potential. 💡 ****Key Insight:** Accumulation persists across key price levels, suggesting confidence despite bearish conditions. ![image.png](https://storage.ghost.io/c/25/7e/257e6d23-09bb-4d1c-b3ed-16ff70eb3f9f/content/images/2025/03/newplot--69-.png) CBD shows SAND investors remained engaged throughout long-term investment horizons 🔗 View Cost Basis Distribution Data for SAND across multiple timeframes in [Glassnode Studio](https://studio.glassnode.com/dashboards/tokens-cost-basis-distribution?a=SAND). ### Decentraland (MANA): Buying the Dip A significant **supply concentration has formed around $0.60**, reflecting increased buying activity following a price drop. This suggests that investors are **viewing lower prices as buying opportunities**, rather than signs of further decline. 💡 ****Key Insight:** Market participants are actively accumulating at perceived value zones. ![image.png](https://storage.ghost.io/c/25/7e/257e6d23-09bb-4d1c-b3ed-16ff70eb3f9f/content/images/2025/03/newplot--70-.png) Notice supply concentration at around $0.6 increasing in Feb 2025 despite the price drop 🔗 View Cost Basis Distribution Data for MANA across multiple timeframes in [Glassnode Studio](https://studio.glassnode.com/dashboards/tokens-cost-basis-distribution?a=MANA). ### Axie Infinity (AXS): Long-Term Conviction Remains Despite a sustained downtrend, on-chain data shows a **progressive build-up of large positions**. This pattern suggests that **certain investors remain highly confident** in the future of Axie Infinity. 💡 ****Key Insight:** Persistent accumulation hints at long-term belief in the project’s fundamentals. ![image.png](https://storage.ghost.io/c/25/7e/257e6d23-09bb-4d1c-b3ed-16ff70eb3f9f/content/images/2025/03/newplot--71-.png) Notice consistent accumulation over the past two years showing low sensitivity to price action 🔗 View Cost Basis Distribution Data for AXS across multiple timeframes in Glassnode Studio. ## Is Metaverse Resurgence Ahead? The speculative hype around the **Metaverse may have faded**, but **on-chain activity suggests otherwise**. The **continued accumulation across major Metaverse tokens** indicates that many investors see these projects as **undervalued opportunities rather than failures**. Is this setting the stage for a future recovery? While price action remains uncertain, **the data suggests that conviction remains strong among key market participants** \- and they are positioning accordingly.