Metaverse housing bubble bursting? Virtual land prices crash 85% amid waning interest
The virtual real estate market is crashing despite a McKinsey report predicting a $5 trillion market by 2030.
The metaverse sector is witnessing its very-own housing crisis moment, thanks to massive declines in the prices of its virtual lands in 2022, led by waning users' interest and a crypto bear market.
Land sales plunge 85% in 2022
In particular, metaverse projects built on the Ethereum blockchain, including the Sandbox and Decentraland, have witnessed substantial declines in their valuations and other key metrics, data from WeMeta shows.
For instance, the average price of lands sold across Decentraland peaked at $37,238 in February 2022. But as of Aug. 1, their costs had dropped to an average of $5,163. Similarly, the Sandbox's average sale price dropped from circa $35,500 in January to around $2,800 in August.
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