Fall of the virtual land market: is it a good time to buy?

Metaverse virtual land prices have continued to decline for several weeks. But is this really the right time to buy?

On the Otherside, the most popular metaverse project today, the price of virtual land has dropped by 15%.

Also, land prices for some of the most crowded projects in the metaverse have seen a decline. This includes projects such as The Sandbox (SAND), Decentraland (MANA) and Axie Infinity (AXS).

In fact, virtual lands in the metaverse have not been saved by the overall decline of the crypto market. For example, Ethereum, the second largest cryptocurrency by market capitalization, sold for about $ 2,300. This, after reaching a period high of $ 4,800 in November 2021.

Metaverse Lands: An Unfinished Success

At the end of 2021, Facebook changed its name to Meta. By presenting his new metaverse project, Mark Zuckerberg hopes to slow down the decline of his platform.

This rebranding initially gave great impetus to native tokens in some metaverses. Projects such as The Sandbox, Decentraland, Enjin (ENJ), CEEK, Bloktopia (BLOK) and Pavia have benefited greatly from this new momentum. But a few weeks later, the announcement of the loss of nearly $ 3 billion in the Meta project made headlines. Of course, that’s not good for the virtual price of land.

NFT-focused projects also saw great success in the first quarter of 2022. Many Ethereum-based NFT collections have generated very good returns for their investors. However, most of the NFTs hosted by Solana and other networks have lost value.

Where did this decline in land prices come from?

The current decline in metaverse land prices is mainly due to the overall fall in the crypto market. However, even before this crash, the prices of some virtual land fell.

In March, Axie Infinity, the largest metaverse project in terms of transaction volume, was hit by a cyberattack that caused it to lose thousands of users. Even after promising to recoup the $ 650 million lost, the developers of Axie are struggling to regain the trust of players.

NFT in virtual lands: game state

Earlier this week, Bitcoin briefly plunged below $ 30,000. This fall in the market price of No. 1 cryptocurrency highlights the loss of NFT-focused projects. Last month, many altcoins such as SAND, MANA and AXS lost almost 40% of their value.

The virtual land in the Otherside metaverse fell from 2 ETH to a long period of 7 ETH, before falling to about 4 ETH.

In The Sandbox, land prices recently fell 11%. Currently, they are sold on NFT platforms like OpenSea or LooksRare at prices not to exceed 1.19 ETH.

For their part, Decentraland lands were sold on the official project market and on some of the most well -known platforms. Currently, the most affordable land in Decentraland costs about 3,800 MANA, or nearly $ 5,000.

Finally, the virtual courts in Pavia, based in Cardano, are offered at almost 300 ADA in the jpg.store market.

Despite falling prices, major finance companies such as Ark Investment and Morgan Stanley say the gaming and blockchain industries will be one of the fastest growing sectors in the next decade. In addition, an Ark Invest study predicts that GameFi projects will be used as new social networking tools.

Virtual land in the metaverse

Is it the right time to buy?

Large corporations and institutions continue to buy land. Why? Because metaverse virtual real estate can be used by brands as a marketing channel. In these new virtual worlds, the tools of marketing and sales are endless. This market downturn will be a passing period and prices may soon resume their upward path.

Disclaimer

All information on our website is published in good faith and for general informational purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

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