Metaverse has become the most popular topic in the market as social media giant Facebook has transformed into Meta and stepped into the virtual world. Also, during the 2021 crypto bull run, metaverse coins literally exploded. Lands in metaverses such as Decentraland and Sandbox found buyers at unbelievable prices. But the real estate market in the Metaverse is now facing a serious crash.
Metaverse real estate prices crash
As you follow on Kriptokoin.com, the metaverse space exploded with Facebook becoming Meta. It is on everyone’s agenda whether it is in the market or not. This, in turn, ignited the metaverse’s real estate prices and thus token prices. However, metaverse real estate business is also stagnating after the recent crypto crash.
According to data provided by The Information, the average price per parcel of virtual lands has lost more than 66%. At the same time, total monthly transaction volumes of metaverse real estate across six major platforms also fell. The data shows that trading volumes have decreased by an astonishing 90% in the last six months.
Investors that bought metaverse land with the hopes of leasing it to retailers have seen the value of their holdings collapse.https://t.co/eb9nO6yNyn pic.twitter.com/VaTPmjSdCL
— The Information (@theinformation) August 3, 2022
The Information’s publication also reveals that land prices have also plummeted following the massive crash in the crypto and NFT market. In the era when Metaverse became popular, many real estate buyers bought it in the hopes of renting or selling it to companies that wanted to build their own real estate in the virtual world. The following points are highlighted in the release notes:
Investors who bought at the top are now sitting on land that has depreciated. Meanwhile, the real-world economic downturn could open doors in different directions. It’s possible that it will encourage brands to spend on developing their metaverse assets.
Metaverse’s job opportunities are also in serious decline.
According to workplace researcher Revelio Labs, jobs in the metaverse fell more than 81% in the period between April and June last quarter. Naturally, this decline coincided with the wider market meltdown in the crypto universe. It also coincides with the slowdown in new hires in the tech sector.
Revelio Labs economist Jin Yan described it as “a short-lived hype by demand” after Facebook’s return to Meta. However, there are still five types of job opportunities in demand. Analytics Insights ranks them as follows:
- Metaverse Research Scientist
- Blockchain Engineer
- NFT Strategist
- Metaverse Planner
- Ecosystem Developer
On the other hand, it is not yet clear how long it will take for the industry to review the recent meltdown. However, according to experts, it is possible to see more participation from other companies on the way with the continued impact of tech giants like Facebook. However, it is unclear when this contribution will occur and what its impact will be.
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