After unprecedented growth in 2021, the trading volume of virtual land in the virtual world has plummeted as prices in the broader crypto market have tumbled.
In fact, as of September 12, 2022, virtual transaction volumes that track sales for 18 Metaverse Virtual Land projects have plunged about 98% from their 2021 highs. Trading volumes peaked in November 2021 at just over $8 million, according to data released on September 21.
Previously, with the popularity of the metaverse concept, the market’s interest in virtual land surged, triggering a rush. In fact, most people participate in virtual worlds in the hope of profiting from virtual worlds. And as the broader cryptocurrency market and the broader economy continue to crumble, pent-up volumes shouldn’t come as a surprise.
In addition, the decline in transaction volumes has led some markets to question the general use of virtual land. Some critics argue that there is an oversupply of land. Therefore, it is no longer a scarce resource to spark more interest. However, if the crypto market recovers as different companies enter the space, interest in the metaverse could surge again.
However, at present, it seems that transactions in the virtual world are still affected by the overall market situation. Including Mark Zuckerberg, CEO of Facebook parent company Meta, has also paid a high price in the real world for his strategy of betting on the metaverse. So far this year, his wealth has more than halved to $71 billion, the most of any super-rich tracked by the Bloomberg Billionaires Index. With a current net worth of $55.9 billion, his ranking among the world’s billionaires has slipped to 20th from 6th at the start of the year.
In addition, sources recently said that META has begun to lay off significant staff through restructuring, and META expects to cut costs by at least 10% in the next few months.
In fact, in the case of the sluggish market conditions, not only virtual land, but also NFT products are also affected by the market conditions. The “2022 Game Industry Status Report” released by fan platform Fandom shows that the game player group holds a “one-sided” negative view of NFTs. Most people believe that NFTs do not have any need to exist, and 72% of players hold NFTs very much. Negative perception that NFTs are unwise currency investments with unknown risks. 67% of consumers have only basic or no understanding of NFTs, and only 9% of gamers own NFTs. Only 7% of consumers believe that NFTs are an important part of the gaming space, and only 13% are interested in the evolution of NFTs in games, believing that they can effectively incentivize community participation.
