The fall of metaverse and virtual lands. Will he ever come back?

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The fall of metaverse and virtual lands.  Will he ever come back?

The difficulties in the crypto world have affected many aspects and sectors. Not only have digital coins been in trouble, but virtual earth and the metaverse have also been caught in the crossfire. Last year, something as simple as buying an item in a metaverse was considered a luxury or a status symbol.

However, the hype and excitement around the metaverse lands has diminished since March of this year. This is due to a combination of declining cryptocurrency prices and slow infrastructure development.

Almost a year ago, Facebook became Meta and virtual land prices skyrocketed. But now, 11 months later, trading volume is down more than 80%. Was it just a wild dream? Will virtual market prices increase further? Is the ecosystem worth investing in?

Metaverse and virtual land prices are in the red zone

Following the introduction of Meta, interest in the Metaverse grew rapidly, with companies keen to invest in it. Expectations of an alternate universe where people can live, work, and play are starting to kick in. The goal is to build a world comparable to the real world, where individuals can do just about anything they want.

The metaverse concept, however, has entered a period of uncertainty as discussions about digital assets have died down. According to reports, the value of non-fungible tokens (NFT) under the care of the best virtual platform is in decline.

Many popular platforms, such as Decentraland, The Sandbox, and Somnium Space, have seen their revenue decline by up to 95%. EthereumEther’s currency, has also dropped significantly in value, contributing to the decline of the metaverse lands. As the average land sale decreases, virtual land seems to be in less demand.

Since the start of the crypto winter, Sandbox’s revenue per unit has declined on a monthly basis. The current value of Sandbox, according to CoinMarketCap, is $0.867844.

The fall of metaverse and virtual lands.  Will he ever come back?  1
Source: Dune

The last twelve months have been difficult for sellers as the value of Ether against the dollar has fallen significantly. This means that virtual lands are now worth less in dollars. However, it’s not just Ether’s value that has fallen – NFT sales across three major metaverse platforms have also declined.

WeMeta, a metaverse analytics site, found that the average price of virtual land has fallen by more than 80% since November 2021. Virtual property trading volume has also fallen by more than 90% during this time.

Recently, the Web3 ecosystem experienced a land rush, which resulted in significant losses for many individual investors. Currently, it is difficult for crypto investors to justify investing in the metaverse. The markets are not only risky and volatile, but they are also undervalued.

Crypto Projects and Global Brands Continue to Venture into Metaverse

The cryptocurrency crash has reignited the debate over the legality of virtual real estate investments. However, large companies and well-known crypto projects have taken the opportunity to pounce. The advent of the Metaverse in the eyes of mainstream investors, businesses, and service providers is likely to be perceived differently than that of typical users and enthusiasts.

In May, Yuga Labs, creator of the Bored Ape Yacht Club – a well-known and much-loved NFT collection – launched the highly anticipated metaverse project, Otherside. 200,000 plots of land were put up for sale.

The launch turned into a resounding success, making Yuga Labs a rising star on par with the top two metaverse real estate companies in the world, Decentralized, and The Sandbox. Although Decentraland is doing well, the value of LAND and domains sold in recent months has declined.

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Source: Dune

It is impossible to predict which company will win in the end. Choosing real estate from millions of plots is similar to gambling. These variables have raised the question: Is metaverse mania about to burst?

However, while most organizations and businesses seem indifferent to this debate, global businesses and institutions seem immune to what they call “short-term swings.”

Many retail and electronics brands like Samsung, Nike and Gucci have purchased virtual properties. JP Morgan also announced that it has opened a salon in Decentraland. It is the first bank to establish a presence in the Metaverse. They predict this could be a huge market opportunity worth $1 trillion per year.

It all boils down to the idea that the Metaverse should be optimized for the long term. It was never designed to provide quick feedback. Bumps in the road will be inevitable in such a large new area, especially in its early stages, when it is still being explored.

Meta provides the Metaverse growing exponentially, and missing out commercially is not an option if Meta’s plans come to fruition. The market value of the Metaverse is projected to be $1.6 billion by 2030, further reinforcing this point.

Here are examples of Web3 market performance case studies

More virtual lands and Metaverse projects fail. Here’s a breakdown of how each performed. As seen below, all of their prices have been on a downward trend over the past few months.

The fall of metaverse and virtual lands.  Will he ever come back?  3
Spring Dune.

It should be noted that some virtual worlds have started to recover, Somnium Space being a prime example.

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Source; Dunes

Is it time to ditch Web3 marketplaces?

Absolutely not!! Like anything else, market trends come and go. However, if the Metaverse develops as expected, having a location there could be worth a lot more than what we’ve seen people pay for plots of land. Of course, there are many variables to consider.

It’s hard to predict whether Decentraland and Sandbox will maintain their dominance in the future. Metaverse worlds can go up and down depending on their usefulness and popularity in the years to come.

If the metaverse is to be believed, a modest market downturn is only a minor hurdle due to dire global circumstances. The economy will fluctuate, but the new immersive Internet 3.0 will continue to exist thanks to its massive scale.

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