Metaverse real estate was one of the biggest virtual investments of 2021. As cryptocurrency and NFTs boomed, virtual landlords popped up to buy as much Metaverse land as they could. Hilariously, it’s backfired immensely.
Since its peak in 2021, virtual land inside 3D metaverses are plummeting in value. Despite much hype from investors, the lack of interest from the general public has led to massively decreased land prices.
Metaverse land prices plummet
Via Finbold, a crypto finance outlet, the value of virtual real estate is 98% lower than it was in 2021. Virtual land sold for millions of dollars back during the NFT craze. However, following several crypto crashes and a decreased buzz in virtual items, the market has collapsed.
This drop isn’t restricted to just one virtual Metaverse project. Instead, it’s a widespread reality for nearly all virtual worlds. Virtual trading reached a peak of $8 million across 18 metaverses back in September; that valuation is now near zero.
This isn’t too surprising. As with crypto and NFTs, the Metaverse market was a race for profit last year. Since then, the buzz has all but fizzled out as investors discover a general public uninterested in joining in.
Furthermore, Metaverse land in general has been seen as an unwise investment. This is because, unlike real land, virtual land can always be created meaning there’s a complete lack of scarcity.
The creation of a horde of different “metaverses” also hasn’t helped the situation. Just like crypto coins and NFTs, too many options have diluted the market heavily making the general public confused as well as disinterested.
It could bounce back
In the future, the popularity of Metaverse land could pop up again. However, that all depends on if a virtual world is created that the general public actually want to use.
Currently, so-called metaverses are simply 3D environments. For example, popular Metaverse Sandbox is just a web-based social game with 3D voxel graphics. However, the promise of a true Metaverse — a realistic 3D virtual reality second internet — could drive more interest.
That’s the type of virtual world that companies like Meta and Microsoft are working on. Even then, there’s no telling if human beings will want to interact with that virtual setting every single day. After all, it’s more of a hassle than simply logging into Twitter.