Connect with us

Technology

Decentaland and Sandbox property prices plummet as metaverse ‘virtual land crash’ strikes

WHAT goes up must come down – including the hyper-inflated prices of metaverse real estate.

Following months of skyrocketing prices, it appears that the value of “land” in the virtual 3D space is taking a tumble.

Metaverse ProptertyVirtual real estate in the metaverse is selling for millions of dollars[/caption]

According to analytics company Meta Metrics, the average price of metaverse property dropped 18 per cent in March.

That’s in stark contrast to the preceding six months when prices rose nine-fold. Sales in January topped $85million.

The metaverse is a loosely defined virtual realm made up of connected 3D virtual worlds where people can work, play or do business.

Visitors to the social spaces can buy goods and services, such as property, much like they would in the real world.

Read more about the metaverse

GOODBYE CONSOLES

Mark Zuckerberg promises metaverse plans including VR Grand Theft Auto

CUPID’S OCULUS

Inside the world of METAVERSE ‘speed dating’ – avatars flirt by candlelight

And while that largely takes the form of a few square metres of space that fetch a small fee, prices can go into the millions.

Vast metaverse estates are fetching big prices as investors buy up land in the hopes of making a tidy sum.

Traded in cryptocurrencies, they are owned as NFTs. Much like with real property, owners splash out in the hopes they’ll be worth more in future.

However, just like their real-world counterparts, the value of the plots can go up or down. They are considered a risky investment.


According to an analysis by Meta Metrics, a metaverse data provider, the average metaverse real estate price dropped to $8,594 in March.

That’s compared to an all-time high of $10,473 reached in the previous month.

However, despite the dip, things are still looking rosy for investors.

Land pricing was still four times higher in March than it was a year earlier when properties were going for $2,131 on average.

It’s unlikely that the blip will curb sales as interest in the industry grows.

Sales of virtual real estate topped $500million last year and could double this year, according to analysts and investors.

So far, metaverse real estate sales have been concentrated on the “Big Four” – Sandbox, Decentraland, Cryptovoxels and Somnium.

It’s likely that other sales booms will sweep the industry in future as new metaverses become the flavours of the week.

Prices for metaverse properties may be volatile but that hasn’t stopped investors from pumping money into them.

Republic Realms, a metaverse real estate company, splashed out $4.2milion on land in virtual world The Sandbox last year.

Read More on The Sun

BOMBSHELL LETTERS

Charles letters reveal he asked paedophile Jimmy Savile to advise royals

ROM KICKED IN THE ROUBLES

Sanctioned Abramovich ‘begs pals to lend him £1M to stay afloat’

That topped a record set by Andrew Kiguel, the CEO of tech website Tokens.com, who dropped $2.4million on land in Decentraland.

At the time of these purchases, the price of digital real estate had skyrocketed by 400 to 500 per cent, Kiguel told CNBC.

Read all the latest Phones & Gadgets newsKeep up-to-date on Apple storiesGet the latest on Facebook, WhatsApp and Instagram

Best Phone and Gadget tips and hacks

Looking for tips and hacks for your phone? Want to find those secret features within social media apps? We have you covered…

How to get your deleted Instagram photos back
How to track someone on Google Maps
How can I increase my Snapchat score?
How can I change my Facebook password?
How can I do a duet on TikTok?
Here’s how to see if your Gmail has been hacked
How can I change my Amazon Alexa voice in seconds?
What is dating app Bumble?
How can I test my broadband internet speed?
Here’s how to find your Sky TV remote in SECONDS

We pay for your stories! Do you have a story for The Sun Online Tech & Science team? Email us at tech@the-sun.co.uk

Exit mobile version