Many cryptocurrencies related to games, metaverse and NFT including The Sandbox (SAND), Axie Infinity (AXS), Decentraland (MANA) and Gala (GALA) have suffered heavy losses since the beginning of the bear market. The main reason for this decline could likely be the decline in NFT buying and selling volumes.
The domination of the metaverses is struggling
For The Sandbox, overall secondary market land sales fell by 54% in Q1 2022 compared to Q4 2021. Sandbox is a virtual real estate platform, which allows users to purchase digital land such as NFT.
Although the users of The Sandbox platform have increased to 2 million users, the retention problem is the main cause of this flaw. It is reported that only 7% of users have purchased land in The Sandbox for more than a year. This highlights user concerns about long-term interest in digital real estate.
About 10% of users sell their NFT in The Sandbox within the first 30 days of purchase. 72% of them maintained their NFT for a period of one to three months.
Lack of interest in games Play to earn it doesn’t help NFTs
This price correction is likely due to a decline in NFT trading volume. This dropped to lower levels in January 2021, according to data from Dune Analytics.
According to data analytics platform Nansen, Axie Infinity’s revenue has also declined over the past six months. Axie Infinity collected just $ 5,500 in daily income from farming and market costs. It’s down 99% from an all-time high of $ 17.5 million a day, recorded in August 2021.
Axie Infinity’s revenue comes from transaction fees and creation fees. This is because 0.5 AXS are charged every time a new Axie creature is created and a 5.25% market fee is payable every time Axie is traded.
With a lack of interest in games Play to earn, GALA has also declined over the past 6 months. Trading activity for Town Star, an NFT collection from GALA Games, has dropped to just over 11 ether per day from a record high of 601.56 ether recorded on December 24, 2021.
There are a large number of reasons why metaverse and NFT tokens are plummeting. The ecosystem offered by Web3 is quite new. The cryptocurrency market itself is currently in a downtrend, for a variety of reasons. But overall, the lack of interest and low activity of these sectors does not support the projects and at the same time the prices.
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Interested in investing and financial markets after a business school in Chambéry, the passion for cryptocurrencies was evident. The blockchain is certainly the universal tool of tomorrow.