{"id":482391,"date":"2022-08-08T17:28:03","date_gmt":"2022-08-08T14:28:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/metaverse-housing-bubble-bursting-virtual-land-prices-crash-85-amid-waning-interest\/"},"modified":"2022-08-08T17:28:03","modified_gmt":"2022-08-08T14:28:03","slug":"metaverse-housing-bubble-bursting-virtual-land-prices-crash-85-amid-waning-interest","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/metaverse-housing-bubble-bursting-virtual-land-prices-crash-85-amid-waning-interest\/","title":{"rendered":"# Metaverse housing bubble bursting? Virtual land prices crash 85% amid waning interest"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a264ad9b19ca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a264ad9b19ca\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/metaverse-housing-bubble-bursting-virtual-land-prices-crash-85-amid-waning-interest\/#%E2%80%9D_Metaverse_housing_bubble_bursting_Virtual_land_prices_crash_85_amid_waning_interest_%E2%80%9C\" >&#8221; Metaverse housing bubble bursting? Virtual land prices crash 85% amid waning interest &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/metaverse-housing-bubble-bursting-virtual-land-prices-crash-85-amid-waning-interest\/#Land_sales_plunge_85_in_2022\" >Land sales plunge 85% in 2022<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/metaverse-housing-bubble-bursting-virtual-land-prices-crash-85-amid-waning-interest\/#Declining_metaverse_volumes\" >Declining metaverse volumes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/metaverse-housing-bubble-bursting-virtual-land-prices-crash-85-amid-waning-interest\/#Metaverse_ETF_also_takes_ahit\" >Metaverse ETF also takes ahit<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Metaverse_housing_bubble_bursting_Virtual_land_prices_crash_85_amid_waning_interest_%E2%80%9C\"><\/span>&#8221; Metaverse housing bubble bursting? Virtual land prices crash 85% amid waning interest &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-28d77a7a>The metaverse sector is witnessing its very-own housing crisis moment, thanks to massive declines in the prices of its virtual lands in 2022, led by waning users&#8217; interest and a crypto bear market.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Land_sales_plunge_85_in_2022\"><\/span>Land sales plunge 85% in 2022<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In particular, metaverse projects built on the Ethereum blockchain, including the Sandbox and Decentraland, have witnessed substantial declines in their valuations and other key metrics, data from WeMeta shows.<\/p>\n<p>For instance, the average price of lands sold across Decentraland peaked at $37,238 in February 2022. But as of Aug. 1, their costs had dropped to an average of $5,163. Similarly, the Sandbox&#8217;s average sale price dropped from circa $35,500 in January to around $2,800 in August.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/2154c21d-7812-4c1c-bb7f-cfa9773b4fb0.png\"><figcaption style=\"text-align: center;\"><em>Average sale price of virtual lands on Ethereum metaverse projects. Source: WeMeta<\/em><\/figcaption><\/figure>\n<p>Overall, the average price per parcel of virtual lands across the six major Ethereum metaverse projects dropped from <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately $17,000 in January to around $2,500 in August, or a 85% decline.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Declining_metaverse_volumes\"><\/span>Declining metaverse volumes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Poor land sale volumes further indicate dampening user interest in Metaverse projects.<\/p>\n<p>On a weekly average, the volume, which represents the amount of lands (derived in currency) traded, has dropped from its peak of $1 billion in November 2021 to approximately $157 million in August 2022.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/67de22ba-f190-4d4a-a24e-b256b46bd12b.png\"><figcaption style=\"text-align: center;\"><em>Metaverse land sale volumes. Source: WeMeta<\/em><\/figcaption><\/figure>\n<p>Simultaneously, the market valuations of the Metaverse tokens in circulation have dipped by more than 80%, led further by a broader retreat across the cryptocurrency sector due to unfavorable macroeconomic conditions. <\/p>\n<p>For instance, the market valuation of Decentraland&#8217;s MANA tokens in circulation dropped from $10 billion in November 2021 to $2 billion in August 2022. Similarly, Sandbox&#8217;s SAND&#8217;s net capitalization reached $8.4 billion to around $1.78 billion in the same period.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">fricking metaverse housing bubble just popped who would\u2019ve thought <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/4OZKoi5fH4\">https:\/\/t.co\/4OZKoi5fH4<\/a><\/p>\n<p>\u2014 lil t the based god (@fauxzus) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/fauxzus\/status\/1556397310099312642?ref_src=twsrc%5Etfw\">August 7, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Metaverse_ETF_also_takes_ahit\"><\/span>Metaverse ETF also takes ahit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Meanwhile, the Roundhill Ball Metaverse exchange-traded fund (METV) is tanking alongside blockchain-focused metaverse projects. The ETF gives investors exposure to companies that have been employing the Metaverse in their growth strategy,<\/p>\n<p>On the daily chart, METV has dipped by nearly 45% from its record high of $17.11 in November 2021, with the companies iits stock portfolio, including Meta (formerly known as <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a>) and Snap, reporting substantial second-quarter losses.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/7ba52163-e3b2-4490-8ced-e1b7b8251f9a.png\"><figcaption style=\"text-align: center;\"><em>METV daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Nonetheless, corporations, venture capital funds and private equity investors pour over $120 billion into the Metaverse sector between January and May 2022, more than double the $57 billion invested in all of 2021, according to a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.mckinsey.com\/~\/media\/mckinsey\/business%20functions\/marketing%20and%20sales\/our%20insights\/value%20creation%20in%20the%20metaverse\/Value-creation-in-the-metaverse.pdf\">recent McKinsey report<\/a>.<\/p>\n<p><strong><em>Related:\u00a0Facebook\u2019s metaverse will \u2018misfire,\u2019 says Vitalik Buterin<\/em><\/strong><\/p>\n<p>Despite the decline in the metaverse market, however,\u00a0McKinsey\u00a0believes the space can become a $5 trillion sector by 2030, noting that e-commerce will likely realize a market impact of between $2 trillion and $2.6 trillion alone, followed by the academic virtual learning sector, which could have an impact of $180 billion to $270 billion. <\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Virtual land prices crash 85% amid waning interest &#8220; The metaverse sector is witnessing its very-own housing crisis moment, thanks to massive declines in the prices of its virtual lands in 2022, led by waning users&#8217; interest and a crypto bear market. Land sales plunge 85% in 2022 In particular,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":482392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvNjBhN2YzY2EtZDM5Ni00ZmI4LTk1OTMtYTRmNGE3MDMzYzgxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,126542,74939,91498,112725,89067,73785,71226,17813],"class_list":["post-482391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-decentraland","tag-market-analysis","tag-metaverse","tag-real-estate-investment","tag-sandbox","tag-markets","tag-real-estate","tag-virtual-reality"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/482391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=482391"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/482391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/482392"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=482391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=482391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=482391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}