The price of virtual land in the metaverse is collapsing

A major real estate crisis affecting Metaverse. Since the beginning of the year, the average price of virtual plots has fallen significantly. Like cryptocurrencies and NFTs, the sector is suffering from the economic downturn.

The price of digital plots in the metaverse is half mast. According to a study by The Information, Average price of virtual land It has shrunk by more than 80% this year. Individuals and entities that have invested in multi-million dollar packages are currently in deficit.

© Information

parallel, Trading volume decreased by 90% Compared to November 2021, shortly after Facebook rebranded it as Meta and metaverses are very popular.

Metaverse is in the midst of a real estate crisis. Virtual land sales volumes and average prices have fallen this year ”, explains the information in a survey dedicated to ‘real estate boom’ from metaverse.

The data, collected by analytics platform WeMeta, comes from major metavers that have emerged in recent months, including Sandbox, Decentraland, Voxels, NFTs Worlds, Somnium Space and Superworld. On these platforms, it is possibleInvesting in virtual real estatethe same way one would invest in apartments or houses in the real world.

RELATED: Cryptocurrency Creator Ether Predicts Metaverse Failure

Why Metaverse Plot Prices Are Dropping

Currently digital land value Related to the cryptocurrency market and non-fungible tokens (NFT). However, the value of all digital assets has decreased significantly since the spring of 2022. The crypto asset market has witnessed I lost billions of dollars in valuation In a few weeks. The collapse of the Luna ecosystem, or the bankruptcy of Celsius or investment fund 3AC, has seriously damaged investor confidence. As a result, the price of digital currencies has fallen. for example, Bitcoin King It is currently trading around $23,000, well off its record at the end of 2021.

Same story on the side of non-replaceable tokens. The NFT segment is experiencing a sharp decline in the number of sales. During July 2022, $626.11 million has been traded By NFT sales platforms, up from $884.68 million in June.

“A slowdown in the real economy can reduce brands’ willingness to invest in strengthening their presence in the metaverse.”Information notes.

The digital asset industry is suffering from The collapse of the traditional financial markets. In the context of inflation and geopolitical uncertainty, most stock indexes have fallen sharply in recent months. Deprived of liquidity, investors tend to steer clear of riskier assets such as cryptocurrencies, NFTs and digital conspiracies into metaverses.

source :

the information

Leave a Comment

Your email address will not be published.