Due to steep price drops for its virtual land in 2022, driven by waning user interest and a bad market in cryptocurrencies, the metaverse industry is currently experiencing its own real estate catastrophe.
In 2022, land sales will drop by 85%. Data from WeMeta reveals that several metaverse projects, such Sandbox and Decentraland, built on the Ethereum blockchain, have experienced sharp declines in their values and other important criteria.
The price per squared meter has dropped from $80 in November 21 to near $10 in October 22 for Decentraland (red).
At the same time, market valuations of active metaverse tokens have decreased by more than 80% as a result of a general crypto industry decline brought on by poor macroeconomic circumstances.
However, a new research claims that organizations, venture capital funds, and private equity investors will invest more than $120 billion in the metaverse industry between January and May 2022, more than double the $57 billion that was committed in the entire year of 2021.
Nevertheless, this research predicts that the metaverse market may grow to be a $5 trillion industry by 2030, noting that e-commerce alone is expected to have a $2 to $2.6 trillion market impact, which may have an impact of between USD 180 and USD 270 billion.
