Prices of virtual lands on some of the top Metaverses have reduced significantly when compared to their peak prices of 2022, with most depreciating around 90% in value. A study published by CoinGecko shows that popular metaverse properties, such as Otherdeeds, The Sandbox, Decentraland, Somnium, and Voxels, have all depreciated in value over the past year from January 1, 2022, to May 24, 2023.
The most expensive property at the time, Otherdeeds by Otherside, which once sold properties at 5 Ether (ETH), is currently selling at 1.09 ETH — down by 78.2%. The Sandbox and Decentraland properties are also down by 89.76% and 87.88%, respectively. Despite the massive drop in prices, Voxels remains optimistic about a comeback.
Tech giants and major economies continue to test the ultimate potential of the metaverse through various investments and initiatives. iPhone manufacturer Apple is soon to release a mixed-reality headset, which could potentially reignite global interest in the metaverse.
Speaking to Cointelegraph, eToro market analyst Josh Gilbert said that the new headset could set the markets ablaze, considering Apple’s proven record to deliver high-quality, market-shifting products. Gilbert stated: “When Apple does it, they usually do it right.” According to a report from Apple product soothsayer Mark Gurhman, the new Apple headset is set to launch on June 5.
However, the rapid depreciation of metaverse property values over the past year raises questions about the sustainability and long-term prospects of these digital assets. In the face of massive losses, some investors may be wary of the overall stability of the metaverse market, expressing concerns about whether these virtual properties will maintain their value in the future.
On the other hand, proponents of the metaverse argue that this downward trend in property values is merely a temporary setback, resulting from growing pains as the technology and market mature. They believe that with increased adoption and support from major companies like Apple, the potential for metaverse properties is still enormous, and that investors will be drawn back to these digital assets as the market stabilizes.
In conclusion, evidence of substantial losses in some top metaverse property investments highlights the inherent risk and volatility associated with these digital assets. The inevitable rise and fall of property values in the metaverse serve as a reminder that no investment is without risk, especially in an emerging market. As the metaverse continues to evolve, it remains to be seen whether these virtual lands will become more stable and reliable investments, or whether they will remain speculative bets in a highly unpredictable market.
Source: Cointelegraph
