Property prices in the metaverse have fallen by 15 per cent. So is this the best time to shop?
Metaverse is the buzzword of the future. As more and more people cry out for this immersive experience, they aim to do more in the virtual world.
Apart from Otherside, the most popular metaverse to date, all other metaverse story lines lose value, such as the following: Axie Infinity (AXS), The Sandbox (SAND) and Decentraland (MANA).
Likewise, the crypto value also decreases. For example, ETH is currently trading at $ 2,300, which is far from its highest market value of $ 4,800 last November.
Big enterprises purchase virtual lands in order to expand their product offerings across the metaverse. (Gfinity Esports)
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Meta-project losses affect prices on virtual lands
Mark Zuckerberg introduced the metaverse transition when Facebook’s name was changed to Meta.
This move from Metas CEO triggered enthusiasm in Metaverse and triggered the rise in coin prices. Projects such as CEEK, The Sandbox, Bloktopia (BLOK), Enjin (ENJ) and Pavia increased in value during this time.
But as news of the loss of the $ 3 billion Meta project circulated through mainstream and social media, the prices of virtual lands also dropped significantly.
NFT projects have also increased dramatically during the first quarter of 2022. In fact, many Ethereum NFT collections have flourished during this period.
On the other hand, most Solana-based NFTs have lost value. The current downward trend in Metaverse land prices may be related to the market downturn. But even before these successive declines, other metaverse projects have already fallen.
Crypto total market cap at $1.44 trillion on the daily chart | Source: TradingView.com
NFT projects are declining in value
For example, Axie Infinitly, a largely successful project with the highest transaction volume in the first quarter of 2021, experienced a massive blockade of transactions as players fled after a massive cyber attack on the platform. .
Although Axie’s development team announced that they were willing to pay $ 650 million in compensation, Axie players are still leaving the platform.
In addition, Bitcoin also suffered a major drop in the $ 30,000 band. The collapse of Bitcoin has now resulted in further losses in NFT-based projects. More so, major altcoins including AXS, SAND and MANA have lost about 40% in the last month.
It's becoming increasingly important to expand the virtual realm to meet the increasing demand for an immersive experience. (GOBankingRates)
Otherside actually jumped from 2 ETH to a larger jump of 7 ETH before going into a slippery downhill at 4 ETH.
Sandox land prices also fell by 11%. Right now you can buy SAND plots for sale on NFT marketplaces like LooksRare and OpenSea for only 1.19 ETH.
More so, Decentraland plots are also for sale at the same NFT stores for as little as $ 5,000 or 3,800 MANA.
Is it time to buy land in Metaverset?
So now is the time to buy and stock up on metaverse bundles? Many investors say yes.
Large companies buy these virtual countries because it allows them to sell their products in the meta-verse.
The current fall in land prices is just a dive, and prices should recover in no time.
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Featured image from Economic Times, chart from TradingView.com