The cryptocurrency market has been in sharp decline for months, losing nearly $ 2 trillion in value. This dramatic drop in prices has also affected the metaverse economy, leading to a significant drop in the price of virtual land. Sales volume in this sector has also decreased, which may be a good time to buy land at a lower price.
Volumes and prices are falling in the metaverse
In 2021, when social media giant Facebook decided to venture into the virtual world, the Metaverse was a hot topic. However, the Metaverse real estate market has recently collapsed.
According to data collected by WeMeta and reported by The Information, in the Metaverse between November 2021 and June 2022 real estate sales on Decentraland and The Sandbox fell by 97%. Many people who were hoping to make a profit on these platforms have lost faith and are selling their land instead.
The Metaverse started in the summer of 2018 with $ 8 million worth of properties sold and ended the year with $ 229 million. Another comparison: in November 2021 there were 16,000 sales per day, but in June only about 2,000. This is a huge loss in sales volume. So the average land price went down, in February a piece of land cost you $ 16,300, but in June the same piece of land was only $ 3,300, a drop of almost 80%.
In July 2022, the average cost of land in Decentraland was $ 4,006. The cost of the land was $ 17,736 as of July 2020. Decentraland is at an all-time low when it comes to average land cost. In July 2022, The Sandbox recorded its weakest performance since the beginning of the year. The average land price fell from $ 6,291 in January to $ 3,377 this month.
The metaverse has tremendous potential, but there has been a huge drop in enthusiasm among investors. Many people were scared that the market was too young and everything built there was still under development. Even if the public remains present, it will take many years for this sector to mature.
The number of hires is also decreasing
More and more companies are delaying their investment plans in the metaverse economy, due to the uncertain economy and because they doubt that such a large investment will be profitable in the long run. The economy has only gotten more blurry in recent months, and virtual property sales in the metaverse haven’t been helped by this slowdown.
The crypto space saw a huge drop in job advertisements at the time of the stock market crash, according to Revelio Labs. The decline was over 81% between April and June.
When Facebook changed its name to Meta, it caused a demand frenzy. However, according to Revelio Labs economist Jin Yan, this request will not last.
Tech giants like Facebook are putting pressure on the industry, which could prompt other companies to join the recent debacle. It is unclear how long it will take the industry to recover from this mess, but hopefully as soon as possible.
Over $ 500 million of virtual land was sold last year, representing the largest sales volume boom the Metaverse has ever seen. However, the three biggest metaverse projects (Decentraland, The Sandbox and NFT Worlds) have all seen a decline in sales volumes. Now may be a good time to get into metaverse real estate, waiting for prices to rise again.