- The amount of metaverse land sales hit a new yearly low in August 2023 at Less than $4.2 million sales.
- Increasing crypto regulations and the bear market are the major causes of the decline in the metaverse.
The metaverse is an infusion of virtual reality (VR), augmented reality (AR), artificial intelligence (AI), the Internet of Things (IoT), and blockchain. So, data shows there’s a consistent decline in this sector.
Metaverse Suffers Massive Decline
- At the peak of the crypto market in 2021, the metaverse was one of the budding industries. In fact, large tech giants like Facebook stepping into the scene made the sector skyrocket to new levels. Others, like the Decentraland and Sandbox, enjoyed massive support, with many going as much as buying lands on the metaverse. So, many said at that time that you were missing out if you weren’t purchasing digital lands on the metaverse. All these are things of the past since the market collapse of 2022. Furthermore, the market decline resulted in a simultaneous decline from the metaverse.
- According to data from DappRadar analysts, the metaverse is declining to new levels. However, this is quite bad for the industry, once touted to become the next big thing after the crypto industry. The amount of land sales on the metaverse is as good as dead with the recent data. So, data shows that there were only 8,329 land sales (worth $4.2 million in total) in virtual reality projects in August 2023. This is more than a 23% decline compared to the data of July 2023. Apparently, it is quite sad to see the metaverse consistently decline into new lows.
Why is the Metaverse on the Decline?
- There are some reasons behind the consistent decline of the metaverse over the last months. So, one of the reasons for the decline is the increasing regulatory scrutiny behind the crypto-related sectors. Federal government agencies such as the Securities and Exchange Commission are always on the lookout for crypto-related firms. So, this is taking a toll on the metaverse industry.
- The next thing, which is the most prominent, is the decline of the crypto market. So, the metaverse sector affiliates with the crypto industry. The decline of the crypto industry heavily affects the metaverse. Furthermore, data supports the claims of a massive downfall since the crypto bear market. Data from NFT Price Floor shows that Decentraland’s average sale price plunged 22% to 0.5322 ETH per land over the past 90 days. Furthermore, the trading volume of Decentraland is down by more than 40% within the same period. This situation with Decentraland also applies to other metaverse platforms.
Conclusion
The metaverse sector is suffering from many issues. So, the industry is seeing some of the biggest declines of any crypto-affiliated sector. According to data from trusted sources, the amount of decline within the metaverse is reaching new lows. Apparently, this is more than many analysts’ expectations, judging from their predictions at the peak of the crypto market in 2021.
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