Criptocurrency markets slump in the Metaverse

According to an analysis by the Information, the average price and trading volume of virtual land in the Metaverse has collapsed due to the wider downturn in the criptocurrency markets.

The average virtual land price has fallen by more than 80%. The trading volume has fallen by more than 90% from November 2021 highs.

The information was gathered from WeMeta and was compiled from data from the Sandbox, Decentraland, Voxels, NFTs Worlds, Somnium Space, and Superworld platforms.

The next big thing that was touted as Metaverse was not that long ago. Spiking interest had triggered a rush to acquire prime spots, which mirrored the real estate market.

As recently as February, a investor paid $450,000 for a virtual plot next door to Snoop Dogg in the Snoopverse, which runs on the Sandbox platform.

This push came from Facebook rebranding as Meta in November 2021. Metaverse CEO Mark Zuckerberg called it the next frontier in connecting people. He envisioned virtual worlds as fundamentally changing the way society works. There are revolutionary concepts, such as Metaverse businesses that provide employment.

As average prices and interest have plummeted, the buyers who entered at the top are suffering heavy losses, and the average prices and interest have plummeted.

The debate about whether virtual land is a bonafide investment has been reopened after the crash. The Metaverse includes instant teleportation to any location, as mentioned by Fortune. There is little advantage to buying in a prime location, unlike the real world.

In addition, land in the Metaverse can be infinite, putting a price on the idea of virtual land as a scarce resource.

Metaverse Land Co-operative Airdott attributed the downturn to the wider macroeconomic landscape, saying, Why wouldn't the real world impact the virtual world? They said they are patiently waiting for things to bounce back.

The price of property has gone up over the past two years due to buyers demand. The boom is over due to the squeeze on household budgets due to rising inflation and the threat of central banks increasing rates, according to some real estate experts.

The average price of homes in the U.S. dropped sharply in June.