The Metaverse saw unprecedented growth between 2020 and 2021 as thousands of investors flocked to buy virtual lands. The Sandbox, Decentraland, Enjin, Axie Infinity, and various other Metaverse hit the spotlight last year making its price dramatically soar. In addition, a list of celebrities including rapper Snoop Dogg and Eminem bolstered the Metaverse by buying plots in the virtual lands.
Investors were willing to splurge hundred and thousands of dollars just to own land in the Metaverse. However, the craze to buy digital lands has plummeted in 2022 due to the sluggish bear market conditions. Even leading companies that invested in the Metaverse suffered losses this year. Facebook parent Meta lost $2.8 billion on its virtual reality division during Q2 of 2022.
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Delphi Digital has been tracking the Metaverse sales. Recent data published by the firm shed light that land trading volume has dropped 98% from its peak in 2021. The trading volume peaked at $8 million in November 2021 but began to slump thereon to never recover.
“Interest in the ‘Metaverse’ was kickstarted by a set of bullish announcements in Q4 of last year from companies including Meta, Grayscale, and Citibank. After its peak in 2021, trading volume for virtual land has dropped as much as 98%,” revealed Delphi Digital.
The suppressed trading volume is due to the ongoing bear markets and the slump has sucked out the enthusiasm of investors. The Metaverse is touted to be the ‘next big thing’ in technology but the slump is shedding doubt about its prospects.
In addition, the Metaverse is still lagging in terms of visual graphics despite receiving billions of investments. Read here to know why Metaverse graphics is lagging 20 years behind compared to normal video games. If the virtual land sector doesn’t address the visual graphics issue, it could end up becoming just another fad.