The Metaverse experienced unprecedented growth between 2020 and 2021 as thousands of investors flocked to buy virtual land. The sandpit, Decentraland, Enjin, Axie Infinity and several other Metaverse came into the limelight last year, driving the price up dramatically. In addition, a list of celebrities, including rapper Snoop Dogg and Eminem, bolstered the Metaverse by buying lots in the virtual lands.
Investors were willing to spend hundreds of thousands of dollars to own land in the Metaverse. However, the craze to buy digital lands has plummeted in 2022 due to sluggish bear market conditions. Even leading companies that have invested in the Metaverse suffered losses this year. Facebook mother Meta lost $2.8 billion in the second quarter of 2022 on its virtual reality division.
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Delphi Digital has been tracking Metaverse sales. Recent data published by the company reveals that the trading volume of land is down 98% from its peak in 2021. The trading volume peaked at $8 million in November 2021, but then began to collapse never to recover.
“Interest in the ‘Metaverse’ was fueled by a series of bullish announcements in the fourth quarter of last year from companies such as Meta, Grayscale and Citibank. After peaking in 2021, virtual land trading volume has fallen by as much as 98%.” Delphi Digital revealed.
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The suppressed trading volume is due to the ongoing bear markets and the slump has drained investor enthusiasm. The Metaverse is being touted as the “next big thing” in technology, but the slump casts doubt on its prospects.
In addition, the Metaverse still lags behind in terms of visual graphics, despite receiving billions of dollars in investment. Learn why Metaverse graphics are 20 years behind compared to regular video games. If the virtual land sector doesn’t address the visual graphics problem, it may eventually just become a new fad.
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