The Metaverse industry is recognizing a steep fall in its virtual real estate prices. The plot prices on even the most popular metaverse projects like Otherside by Yuga Labs, The Sandbox (SAND), Decentraland (MANA), and Axie Infinity (AXS) are acknowledging low prices after their all-time highs.
Yuga Labs metaverse ‘Otherside’ which was recently launched on the mainnet has lost 15% of its value. Similarly, The Sandbox has recently shed 11% in the virtual land price values. Many existing users are selling their land plots on OpenSea and LooksRare platforms for low ETH prices.
The popular NFT-based game Axie Infinity saw a huge decline in its number of users. The metaverse project is left abandoned by huge traffic after the major hack happened last month. All the strategies went in vain to keep the players glued, even after reimbursing the loss.
Why the prices are going down?
According to industry experts and analysts, the major downfall in the industry is due to the decline in the crypto market. The decline in Bitcoin (BTC) and Ethereum (ETH) values from their major highs of $69,000 and $4,800 respectively is the main cause behind the fall. Currently, both the major crypto tokens BTC and ETH are trending at $32,209 and $2,406 according to CoinMarketCap reports at this press time.
The native altcoins of the various metaverse projects like SAND, MANA, and AXS are rallying at a 40% depreciated value from the past month. The virtual land plots on the Otherside metaverse were trending at an all-time high of 7 ETH, whereas the value has largely fallen to 4 ETH. Currently, Decentraland is offering virtual land at the cheapest price of 3427 MANA ($3,982).
However, many big organization from around the world and in different sectors continues to buy virtual land in the metaverse despite the dip. In order to expand the business and generate multiple sources of revenue, the metaverse is still the first choice by the institutions. Also, many brands and personalities from the entertainment industry find the metaverse more appealing and attractive to hold concerts, events, and sales shows. The downfall in prices is merely a temporary trajectory that is hoping to recover soon.