A Sharp Decline in Virtual Property Investments
The bubble in the Metaverse property market appears to have burst, with prices plummeting significantly. Major Metaverse platforms, including Otherdeeds, The Sandbox, Decentraland, Somnium, and Voxels, have all seen a drastic reduction in the value of their virtual properties.
Analysis by CoinGecko
According to a recent study published by CoinGecko, these platforms have all depreciated in value over the course of a year and a half, from January 1, 2022, to May 24, 2023. The analysis reveals that the depreciation rates of these platforms are alarmingly high, some even nearing 90%.
Most Affected Metaverse Properties
Otherdeeds, once a thriving Metaverse platform selling properties at 5 Ether (ETH), is currently trading properties at just 1.09 ETH — a depreciation of 78.2%. The Sandbox and Decentraland have similarly been hit hard, with their property values down by 89.76% and 87.88% respectively.
The Cheapest Land in the Metaverse
As of May 24, 2023, the cheapest land in the Metaverse can be found in Voxels, selling at just 0.16 ETH. However, even Voxels hasn’t been spared from the crash, witnessing a staggering 93.8% loss, a figure matched by Somnium.
Hope Amidst the Crisis
Despite the catastrophic crash, there is still a glimmer of hope. iPhone manufacturer Apple is expected to release a mixed-reality headset soon, which could potentially rekindle global interest in the Metaverse.
The Potential Game-Changer: Apple’s Mixed-Reality Headset
Market analyst Josh Gilbert from eToro believes that the new headset could turn the tides for the Metaverse property market. Given Apple’s consistent track record in delivering high-quality, market-shifting products, Gilbert says, “When Apple does it, they usually do it right.” The Apple headset, as per Apple product predictor Mark Gurhman, is scheduled to launch on June 5, 2023, and may just be the spark that the Metaverse needs.
