Metaverse land sales plummet to a record low of $4.1m in a year
DappRadar analysts emphasize the importance of recognizing the ever-changing utility of metaverses. Blockchain-based virtual worlds are facing challenges as on-chain data reveals a persistent decline in trading activity. The latest monthly report from DappRadar reveals that in August 2023, virtual reality projects experienced a decrease of 23% in land sales, with only 8,329 sales amounting to a total value of $4.1 million compared to July 2023.
The decline in sales comes at a time when the entire crypto industry is grappling with the bear market, in addition to facing regulatory pressure from U.S. regulators.
Data from NFT Price Floor shows that Decentraland, one of the leading virtual worlds, has witnessed a significant drop in average sale price, plunging by 22% to 0.5322 ETH (~$860 at the time of writing) per land over the past 90 days. Moreover, Decentraland’s trading volume has also decreased by 40.5% during the same period. Other metaverse-focused ecosystems are experiencing similar trends.
However, Sara Gherghelas, a blockchain research analyst at DappRadar, believes that users and investors need to embrace the evolving utility of metaverses. She suggests that the market should reevaluate the criteria used to assess the success and potential of a virtual world. Gherghelas emphasizes the importance of focusing on continuous developments, innovations, and holistic user experiences instead of relying solely on metrics such as land sale volumes.
In conclusion, it is crucial for industry participants and observers to adapt to the changing landscape of metaverses and acknowledge their evolving utility. By shifting the focus towards innovation and user experiences, rather than solely relying on sales volumes, the virtual world industry can navigate the challenges it currently faces.
