The metaverse, a virtual realm where individuals can engage in various activities and own digital properties, has experienced a significant decline in land prices since its peak in 2022. According to a study published by CoinGecko, popular metaverse properties like Otherdeeds, The Sandbox, Decentraland, Somnium, and Voxels have seen a depreciation in value between January 2022 and May 2023, with most properties losing around 90% of their peak value.
Among the metaverse properties examined, Otherdeeds by Otherside was the most expensive at the time, selling properties for 5 Ether (ETH). However, it is currently being sold at 1.09 ETH, marking a substantial decline of 78.2%. The Sandbox and Decentraland properties have also experienced significant drops of 89.76% and 87.88%, respectively.
Voxels stands out as the metaverse offering the cheapest land, priced at 0.16 ETH as of May 24. Unfortunately, Voxels’ virtual properties faced a staggering 93.8% loss, mirroring the decline seen in Somnium. Despite the steep drop in prices, Voxels remains optimistic about the future. In a tweet from their official account, they expressed their determination to keep building, implying a potential resurgence in value.
The recent downturn in metaverse land prices coincides with the broader meltdown of the cryptocurrency sector since its peak valuation in November 2021. However, there are factors that may rekindle global interest in the metaverse and potentially drive the market’s recovery.
Tech giant Apple, known for its market-shifting products, is set to release a mixed-reality headset that could have a significant impact on the metaverse. Industry experts believe that Apple’s entry into the space could ignite the markets, given the company’s track record of delivering high-quality products. The new headset is expected to launch on June 5, according to reports.
Despite the challenges faced by the metaverse industry, including concerns about user engagement on certain platforms, companies like Decentraland have reported substantial daily and monthly active user numbers. In October 2022, Decentraland claimed to have 8,000 daily active users and 56,697 monthly active users. Major brands such as Nike, Adidas, Coca-Cola, and Samsung have also established their presence within the virtual destination.
While trading volumes in the metaverse experienced a sharp decline in the third quarter of 2022, it may not necessarily indicate a lack of interest. Analytics company DappRadar suggested back then that the decline in trading volumes could be attributed to the overall decline in cryptocurrency prices rather than a decrease in interest in virtual worlds. They view this as a bullish indicator, emphasizing that the enthusiasm for such ventures remains intact.
The future of the metaverse hinges on various factors, including technological advancements, user engagement, and the overall recovery of the cryptocurrency sector. As the market continues to evolve, investors and enthusiasts will closely monitor developments within the industry, keeping a watchful eye on the potential resurgence of metaverse properties and their underlying value.
Despite the current downturn, the metaverse remains an intriguing concept that has captured the attention of both tech giants and major economies. With Apple’s imminent entry and ongoing efforts to explore the metaverse’s ultimate potential, the stage is set for a potential revival and transformation of the virtual realm.