According to an investigation by the Information, the average price and trading volume of virtual land in the Metaverse have drastically decreased alongside the general decline in cryptocurrency markets, as reported by Cryptoslate.
Average virtual land prices have fallen by more than 80%. At the same time, trading volume is down by more than 90% from November 2021 highs.
The data used to build the information came from WeMeta and was taken from the platforms Sandbox, Decentraland, Voxels, NFTs Worlds, Somnium Space, and Superworld, Cryptoslate noted.
The question of whether virtual land is a legitimate investment asset has been brought back up by the crash. The Metaverse features fast teleportation to any location, as Fortune indicated. Given this, purchasing in a prime location offers no benefit, unlike the actual world. Furthermore, land in the Metaverse can be unlimited, dispelling the notion that it is a limited resource.
The Metaverse land cooperative Airdott, on the other hand, explained the decline as being caused by the broader macroeconomic environment, asking “why wouldn’t” the real world have an impact on the virtual one. They continued by saying that they are “patiently waiting” for the situation to improve.
Property prices have soared over the last two years as a result of buyer demand. However, some real estate experts now claim that the bubble is ended as a result of the impact that growing inflation is having on household budgets and the threat of central banks raising rates further.
(With insights from Cryptoslate)