Facebook (Meta) Ends All Restrictions On Crypto Ads, What Does This Mean For Altcoins?

Meta’s decision to change its anti-crypto policy came shortly after the company announced a major rebranding that signaled its focus on the metaverse.

For the uninitiated, the metaverse is a term closely related to Web3.0 that envisions an immersive, self-sustaining, digital virtual economy.

In an official statement, the company said,

“We’re doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry.”

Meta announced it had increased the number of acceptable licenses from three to 27, enabling a wider range of crypto ads to be promoted on the social media platform.

Meta’s focus on all things metaverse does not only hint at the company’s long-term plans to lead the futuristic virtual economy, it brings a degree of authenticity to the crypto industry, and shoots down all arguments about the space being ‘just a fad’ for good.

What does Facebook’s approval of the metaverse mean for crypto assets? Is it a precursor to the upcoming ‘alt season’? Or is it just one of the many top signals indicating an overbought and exhausted market sentiment?

In this article, we will try to analyze the wider implications of Facebook’s decision to rebrand to Meta and the end of restrictions on crypto ads.

Metaverse Coins Continue to Outperform

One of the immediate impacts of Facebook’s rebranding to Meta, and its decision to end the erstwhile restrictions on crypto ads, is the scintillating performance of virtually all metaverse tokens.

Over the past several months, leading metaverse-themed altcoins such as Decentraland (MANA), The Sandbox (SAND), Render Network (RNDR), and Axie Infinity (AXS) have been the clear outperformers in the crypto markets over the other large-cap cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Polkadot (DOT), and the top meme coins such as DOGE and Shiba Inu.

For example, look at the below price chart for MANA over the past three months. On October 28, MANA traded close to $0.78 per token while its current market price sits at $3.55, after tumbling down from its ATH value of $5.85.

(Source: CoinGecko)

A similar parabolic surge in price can be identified in the aforementioned metaverse-based tokens.

The interesting part about the price action of metaverse tokens is that they continued to outperform the wider markets even after Facebook’s rebranding, causing the ‘buy the rumor, sell the news’ traders pain as they presumably waited on the sidelines with their cash to ‘buy the dip’ that never occurred.

Wider Reach for Altcoins

That Meta is taking a step back on its decision to ban crypto-related ads is not only a massive vote of approval for digital assets but will also help increase awareness among the Facebook-specific audience regarding crypto assets.

In an official blog post, Meta stated the current state of the crypto market is largely “matured and stabilized” and that there are already clear government regulations around the world that work as enough grounds to justify the change in the company’s ad policies.

The change in Meta’s ad policy will now enable all crypto projects to tap Facebook’s 2.89 billion strong audience and open new gateways for projects to grow their communities by several orders of magnitude.

A bigger community would, in turn, lead to greater awareness, greater token adoption, and higher demand which could potentially spark the beginning of a new alt season as so keenly anticipated by all crypto enthusiasts.

Encouraging Technical Indicators

In addition to Meta’s pivot toward the metaverse, there are also several significant factors that hint toward an inevitable altcoin run such as the total altcoin market cap chart.

According to the following Total Altcoin Marketcap chart from CoinMarketCap, we can infer that since July 20, 2021, the total altcoin market cap has been making higher-highs and higher-lows, a price action that is typically considered very bullish for the overall market health.

(Source: CoinMarketCap)

It must be noted that despite the altcoin market cap making higher highs, the trading volume has been somewhat lacking, which shows that retail traders aren’t quite into the market yet.

However, this could change in an instant as we saw towards the end of 2020 when Bitcoin’s parabolic surge helped raise all altcoins along with it.

An encore toward the end of 2021 and into early 2022 would hardly come as a surprise.

At the time of writing, the total altcoin market cap sits at slightly above $1.3 trillion USD, according to data on CoinMarketCap.

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