The realm of the Metaverse, an innovative and captivating venture, has witnessed an alarming decline in the valuation of virtual land in recent times. This decline, which began in earnest this year, has left a multitude of speculators with significant losses, causing a seismic shift in the Metaverse’s virtual property market.
Things Aren’t Looking Good for Virtual Land
On May 26, Bobby Ong, Co-founder of CoinGecko, delineated the current predicament by comparing the soaring prices of Metaverse land during its peak to the present reduced values. The downturn has painted a rather bleak picture for virtual landholders.
In 2021 and extending into the initial months of 2022, the Metaverse experienced a remarkable bull market. Virtual parcels were eagerly purchased, often for considerable sums. Prominent global brand names were not exempt from this trend, acquiring substantial stretches of Metaverse territory.
Fast forward to mid-2023, and the landscape has undergone a stark transformation, becoming increasingly barren for those seeking to liquidate their holdings.
The Current State of Virtual Land Prices
The prestigious title of ‘most expensive Metaverse land’ currently belongs to Otherdeed by Otherside, with a price tag of 1.09 ETH (approximately $1,970). Spearheaded by the Bored Ape Yacht Club (BAYC) studio, Yuga Labs, this project’s land prices have suffered a substantial 78% downturn since their pinnacle when plots commanded a price of 5 ETH.
In May 2022, Otherdeeds’ land price witnessed a dramatic spike, reaching 7.5 ETH, the research reveals.
Today, Decentraland’s virtual land is changing hands at 0.64 ETH or around $1,156. This represents an 88% depreciation from its zenith when parcels commanded 5.24 ETH.
The Impact on Other Metaverse Projects
Similarly, The Sandbox’s land prices have plummeted by 90% from their high of 4.2 ETH. A plot today is valued at a mere 0.43 ETH or $777.
Lesser-known Metaverse initiatives, including Somnium and Voxels, have not been immune to this trend, suffering a 94% decline in virtual land prices.
Simultaneously, the NFT market, which hosts popular projects such as Doodles, Moonbirds, and Goblintown, has seen the floor prices of these collections dwindle.
The overall NFT sales volume took an 84% hit between April 2022 and April 2023, according to data from CryptoSlam.
The Effects on Tokens Related to Metaverse Projects
The fall in virtual land prices has ripple effect on tokens associated with Metaverse projects.
For instance, the Sandbox’s (SAND) token languishes at 94% off its record high of $8.40 in November 2021.
Decentraland’s (MANA) token has experienced a similar fate, tumbling 92% from its lofty $5.85 peak.
Even Axie Infinity’s much-vaunted AXS token is grappling with a crushing decline. This once-promising Metaverse asset has lost 96% from its record high of $165.
It seems unlikely any of these assets will reach their previous all-time highs again.
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