WHAT rises must fall – including the inflated prices of Metaverse real estate.
After months of exploding pricesthe value of “land” seems to decrease in virtual 3D space.
According to analytics firm Meta Metrics, the median price of Metaverse homes fell 18 percent in March.
That’s in stark contrast to the previous six months, when prices rose ninefold. January sales exceeded $85 million.
The Metaverse is a loosely defined virtual realm composed of connected 3D virtual worlds in which people can work, play, or conduct business.
Visitors to the Social Spaces can purchase goods and services such as B. Buying real estate, similar to buying in the real world.
And while that usually comes in the form of a few square feet of space that fetches a small fee, prices can run into the millions.
Huge Metaverse estates fetch high prices as investors buy up land in hopes of raking in a tidy sum.
They are traded in cryptocurrencies and owned by NFTs. Similar to real estate, owners invest in the hope that they will be worth more in the future.
However, just like their real-world counterparts, the value of properties may go up or down. They are considered a risky investment.
According to Analysis through metametricsa Metaverse data provider, the average Metaverse home price fell to $8,594 in March.
That compares to an all-time high of $10,473 set the previous month.
However, despite the decline, the outlook for investors remains rosy.
Property prices in March were still four times higher than a year earlier, when properties averaged $2,131.
The outlier is unlikely to slow sales as interest in the industry grows.
Virtual real estate sales topped $500 million last year and could double this year, according to analysts and investors.
So far, Metaverse real estate sales have focused on the “Big Four” – Sandbox, Decentraland, Cryptovoxels and Somnium.
It’s likely that other sales booms will flood the industry in the future as new metaverses become Flavor of the Week.
Metaverse property prices may be volatile, but that hasn’t stopped investors from pumping money into them.
Republic Realms, a Metaverse real estate company, crashed $4.2 million on land in the virtual world The Sandbox last year.
That beat a record set by Andrew Kiguel, the CEO of tech website Tokens.com lost $2.4 million ashore in Decentraland.
At the time of these purchases, the price of digital real estate has skyrocketed 400 to 500 percent, Kiguel told CNBC.
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https://www.thesun.ie/tech/8615713/decentaland-sandbox-property-prices-metaverse-land-crash/ Decentaland and Sandbox real estate prices plummet as the Metaverse experiences a “virtual land crash.”