Falling virtual land sales keep the future of virtual worlds in check

The huge expectations for the metaverse could be meteoric. Like what many see as the new investment scene, financial analysts have shown little interest in the space, and the volume of The Sandbox and Decentraland platforms are showing some bleak signs. They are the two leading blockchain metaverses in the world with market caps of $1.75 and $1.55 billion respectively.

A sharp decline

The Sandbox recorded 1,090 transactions for virtual land in May, the lowest number in the past two years, according to Dune Analytics. This is a significant drop from the 16,511 parcels sold in January.

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And the value is also considerably reduced. While virtual land was priced at $7,000 at the beginning of the year, it is now $2,957. But that value is still well above the 2020 average, when it sold for $300.

In the case of Decentraland, the situation is less critical, but it still worries investors. Monthly virtual land sales, which peaked at 1,551 in November last year, have now nearly halved, with a total of 847 transactions.

The platform’s poor performance is also reflected in the price of the platform’s native cryptocurrency. Sandbox’s SAND token, which reached $8.40 in November 2021, is now trading at $1.41, down 83%.

Both The Sandbox and Decentraland have partnerships with big brands, celebrities, and have taken center stage in the crypto world as interest in the metaverse has grown after Facebook unveiled ambitious plans for the platform model.

While the possibilities of the metaverse are huge, it is still uncertain whether it will succeed in capturing users. Image: Lightspring/Shutterstock

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Although this is a very new concept and its adoption is still in the early stages, the future of the metaverse is still an unknown.

After all, everything is recent, and market turmoil happens quickly. To be successful, one thing is for sure: the Metaverse needs a lot of people to join, with tangible rewards, not just guesswork.

Even with fewer virtual land sales, the number of users in both virtual worlds has increased, which is a positive sign.

In Decentraland, there are currently 4,875 people, which is a record for the platform. On the sandbox, 16,268 are still slightly below the 18,924 recorded at the end of January, but have increased in recent weeks.

Additionally, moves to attract new users can revolutionize the landscape of these platforms.

Take The Sandbox, which has partnered with brands like Adidas and celebrities like Snoop Dogg, and users will soon be able to use licensed Elvis Avatars.

These actions can advance the company, the fan community, and leverage the investment in Metaverse. However, the stakes are very high, that is, it is difficult to make absolute predictions.

Path: Exam

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