While ChatGPT has become a new tech hotspot, the once glorious metaverse has fallen into a slump, with metaverse real estate prices “crashing” into the abyss!
According to data from metaverse analytics platform WeMeta, the median transaction price per square meter of metaverse land was $6,000 in 2021. However, the median transaction price of the world’s largest metaverse real estate sales platform, Decentraland, has plummeted nearly 90%, from $45 in 2022 to $5.
At the beginning of 2022, there was a speculative frenzy in metaverse real estate, with virtual real estate platforms like Decentraland and The Sandbox attracting a large number of users and investors, and well known celebrities like singer JJ Lin and rapper Snoop Dogg joining the ranks of metaverse land buyers.
At that time, the price of metaverse real estate was even higher than that of a villa in Beijing. However, this frenzy lasted less than a year and quickly subsided.
According to China Securities Journal, in November last year, JJ Lin spent $123,000 on three pieces of virtual real estate in Decentraland, which are now worth only about $10,000, a loss of 91%. In addition to the price crash, these three pieces of land are also unpopular. According to the platform’s weekly visit data, these three pieces of land are almost deserted.
Experts believe that metaverse real estate lacks scarcity and use cases, making it difficult to sustain its value. At the same time, some tech giants have begun to cut back on their metaverse divisions, indicating a cautious attitude towards the future of the metaverse.
