Metaverse's Virtual Lands in Crisis as Prices Plummeting in 2023

Metaverse’s Virtual Lands in Crisis as Prices Plummeting in 2023

Landowners within the Metaverse are currently facing a challenging period, with land values plummeting by 80-90% since the previous year. The decline is attributed to the waning interest in the Metaverse sector and the ongoing downturn in the cryptocurrency market. 

The average price for virtual land parcels in the six major Ethereum metaverse projects has dropped from roughly $17,000 in January to approximately $2,500 in August, reflecting an 85% decrease. At present, it is possible to purchase land for less than 1 ETH in the leading metaverses, and metaverse tokens are in an even more precarious position.

Metaverse Prices Goes Down Hard

The Sandbox and Decentraland, Metaverse projects built on the Ethereum blockchain, have undergone a substantial decline in value. The decrease in prices has been especially steep, with the mean price of lands sold in Decentraland reaching a peak of $37,238 in February 2022. Nevertheless, as of August 1, their costs had plunged to an average of mere $5,163. The Sandbox also encountered a drop in its average sale price, which dropped from around $35,500 in January to about $2,800 in August.

The dwindling number of land sales is a strong sign that interest in Metaverse initiatives is waning. Weekly trade volumes, which measure the amount of land being actively traded, have dropped significantly from their peak of $1 billion in November 2021 to just $157 million in August 2022.

Elon Musk recently took to Twitter to share his happiness about the decline of the Metaverse. He pointed out that Disney has cut its Metaverse division and said “nature is healing”. Meta Platforms and Microsoft have also shown less interest in the Metaverse in recent times. 

Downfall of Metaverse Tokens

The Metaverse tokens are also facing a downturn, and this trend is not limited to Metaverse land. The Sandbox (SAND) has suffered a significant setback, plummeting by 94% from its all-time high of $8.40 in November 2021. Presently, the value of this Metaverse token is a mere $0.51.

The fate of Decentraland (MANA) has been similar, as it has dropped by 92% from its peak of $5.85. Currently, MANA is being traded for only $0.47. The situation for the Axie Infinity AXS token, which was once highly promoted, is even worse. This digital asset from Metaverse has lost an incredible 96% of its value from its record-breaking peak of $165. Now, investors can purchase AXS tokens for a mere $6.82.