Metaverse land sales update a year-low at $4.1m

The NFT Unicorn b7fe08d58296dca31f207069254beeb82e2d0c7c Metaverse land sales update a year-low at $4.1m Metaverse News

DappRadar analysts say the industry and observers need to internalize the evolving utility of metaverses.

Blockchain-based virtual worlds are struggling to weather the storm as on-chain data indicate a continued trade decline. According to a monthly overview report by DappRadar, in August 2023, there were only 8,329 land sales (worth $4.1 million in total) in virtual reality projects, a decline of 23% compared to Jul. 2023.

Trading volume in virtual worlds | Source: DappRadar

In addition to regulatory pressure from U.S. regulators, the decline in sales comes when the whole crypto industry is trying to stay afloat amid the bear market.

The NFT Unicorn f3aee6f6ebf7d5ef9adeeb23fa610312c8390fef Metaverse land sales update a year-low at $4.1m Metaverse News

Decentraland volume and sales data on a daily basis | Source: NFT Price Floor

According to data from NFT Price Floor, Decentraland’s average sale price plunged 22% to 0.5322 ETH (~$860 at the time of writing) per land over the past 90 days. Decentraland trading volume for the same period dropped by 40.5%. Other metaverse-focused ecosystems follow, for the most part, the same trend.

However, Sara Gherghelas, a blockchain research analyst at DappRadar, says users and investors should “internalize the evolving utility of metaverses.”

“Initially conceptualized primarily as digital arenas for land sales and trades, their scope has broadened substantially.”

Sara Gherghelas, DappRadar analyst

She also suggested the market recalibrates the criteria used by analysts to evaluate the success and potential of a virtual world. Gherghelas says the attention should be focused on the continuous developments, innovations, and holistic user experiences instead of “over-relying on metrics like land sale volumes.”

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Source: Crypto News