According to DappRadar statistics, the number of active users in the Decentraland and The Sandbox metaverses has decreased significantly.
While the number of unique active wallets on the two platforms has been below 4,000 in the past 30 days, the price floor for non-fungible tokens (NFTs) in the ecosystem has also retreated.
change of focus
According to Inves reportmost of the flagship Metaverse platforms are experiencing user and token declines, with double-digit declines.
Companies driving the Metaverse, like Meta, which rebranded itself from Facebook in line with its strategic plan to create the Metaverse, After the focus shifts OpenAI’s ChatGPT was announced last November, and generative AI has grown in popularity from metaverses to language models.
Two of the biggest players in the metaverse, The Sandbox and decentraland, While the number of users is decreasing, we have also witnessed the tokens also plummeting.
Currently, Sandbox’s SAND has a market cap of $536 million, while Axie Infinity’s AXS token has a market cap of $599 million, a significant drop from its previous multi-billion dollar value.
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data from dap radar It shows that the number of users on the platform has decreased significantly. In the past 30 days up to the time of this writing, Decentraland had 3,860 unique active wallets (UAW), an increase of 108% from the previous month. Transactions in the network were 72,800, which is an increase of 63%, but the balance of smart contracts decreased to $15 million.
It was almost the same as the script for “Sandbox”, If not worse, UAW decreased by 26%, and the number of smart contract transactions decreased by 15% to 2,790.
According to Invezz, “activity on platforms valued at $500 or more is expected to be higher.”
Meanwhile, the minimum price for NFT sales in Sandbox and Decentraland has been trending downward after peaking earlier this year. Floor price is defined as the lowest price of his NFT at any point in time. So, according to Invezz, “a low price is a sign that demand is a little limited.”
According to a report from Invezz, there is one possible reason for the decline of The Sandbox and Decentraland and that is that their native tokens have declined.
As of September 14th, MANA price was pegged at $0.28, which is 95% below its all-time high. Similarly, the SAND token was trading at its all-time low of $0.28, 80% below its all-time high.
Similarly, users who have purchased NFTs or earned rewards in these ecosystems are also seeing their value drop.
According to the same Invezz report, the performance of blockchain applications will therefore, in most cases, mimic that of cryptocurrencies. It performs well when cryptocurrencies are rising and vice versa.
For example, the total value locked (TVL) of decentralized applications (dApps), which are part of the decentralized finance (DeFi) ecosystem, fell when the price of cryptocurrencies fell. Meanwhile, Bored Ape Yacht Club (BAYC) fell as crypto prices fell. Ether (ETH), the native asset that oversees all transactions on the Ethereum network, fell.