Land prices are dropping in the Metaverse – Blockchain World

Real estate prices in the metaverse have been dropping for some time, so is this a bargaining chip or a sure sign of total collapse and the end of business with the metaverse?

Many well-known companies now rely on Metaverse. The Metaverse is increasingly evolving into the planned merging of virtual and real worlds, a world of its own, where you can experience or benefit from many things. The trillion market is often mentioned here in the analysis.

But there is one development that throws this analysis into question marks. These are the real estate prices in the Metaverse. Real estate prices have been dropping very dramatically for some time. This applies to various projects like Decentraland and Sandbox, for example. Which also makes things special.

Falling land prices and the reason

Basically, prices for a plot of land in the Metaverse have recently fallen by 15 percent. Sometimes, depending on the project, it’s 18 percent or more. Of course, this leads inevitably to the question: What is the reason for this? The reasons for this are complex, and one of them can be found in cryptocurrencies. Cryptocurrencies have been under tremendous pressure for several months.

One only has to look at Ethereum, where losses have been high. While the all-time high of $4,800 was reached in November 2021, it is now only $2,300. That’s a good 50 percent loss. These losses are also noticeable in the Metaverse, as are the properties. Both are inextricably linked. But the reason for real estate prices in the Metaverse can not only be seen in cryptocurrencies.

Bad news for metaverse

But even on Facebook, this is closely related to metaverses. But there is no good news here either. Meta, as the parent company of Facebook is now called, had to forgo a loss of about $3 billion. Cyber ​​attacks, which caused a massive $650 million in damage to Axie Infinity, are other negative headlines recently associated with the Metaverse.

Laptop screen showing a scene from the Metaverse.  In front of him, two hands holding a smartphone in landscape format, showing the inscription Decentraland
Land prices are also declining in the Decentraland region.

In addition to damage, if you collect all these points together, you can draw two conclusions from them. For one thing, there is not only one reason for land prices and their degradation. This is not good news in general, especially with regard to the Metaverse. When real estate prices go down, that’s one thing.

However, if users also lose, due to the cyber attack, this is not good news for the Metaverse as it calls into question the actual growth opportunities of the Metaverse. Especially since the rollback has not started now. Instead, it has lasted for 6 months.

Seize the opportunity now?

Of course, falling real estate prices can also be seen as an opportunity. That is, you now have the opportunity to land in the Metaverse at a reasonable price. Indeed, this possibility is now available. But even if land prices fall and continue to fall, buying is still attractive.

This is not surprising either. While the Metaverse is currently struggling with bad news headlines and losses, the future is bright. More and more large companies continue to rely on Metaverse. As such, it will only be a matter of time before the Metaverse rises again. This means that land prices will rise again. But a trend reversal may come sooner than that, especially with land prices. With real estate prices dropping, many companies and adventurers can see their opportunity and invest.

As a trained financial advisor and travel agent as well as a hobby journalist with numerous publications in various newspapers, today I am just as at home as the author of tourism articles and travel guides as I am in the financial world. The topic of cryptocurrency has fascinated me for years and I have already written countless articles that have been published on various crypto portals and in a number of magazines.

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