In tandem with the overall downturn in cryptocurrency markets, as reported by Cryptoslate, both the average price of virtual land in the Metaverse and the trading volume of virtual land have been significantly reduced, according to an analysis conducted by the Information.
It is estimated that the average price of a virtual property has decreased by more than 80%. Moreover, trade volume has fallen by over 90% from its peak in November 2021.
A number of platforms were used to construct the information, including Sandbox, Decentraland, Voxels, NFT Worlds, and Somnium Space. WeMeta provided the data used to construct the information.
Is Virtual Land still a Valid Financial Asset?
Due to the recent market downturn, it has once again become more relevant to ask whether virtual land can be regarded as a valid financial asset. In the Metaverse, lightning-fast teleportation is available to every part of the world, according to Fortune.
Thus, owning property in a desirable location does not result in any benefits, as opposed to the real world. The possibility of an infinite supply of land in the Metaverse also disproves the idea that land is a scarce resource.
Alternatively, the Metaverse land cooperative Airdott attributed the downturn to macroeconomic factors, asking, “why shouldn’t” the real world affect the virtual world? Further, they claimed that they were “patiently waiting” for the situation to improve. The rise in property prices has been attributed to increased demand from buyers over the past two years.
The rise of inflation is causing household budgets to shrink, and central banks may raise interest rates even further, according to some in the real estate industry.
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