Analysts at DappRadar say the industry and observers need to internalize the utility of the evolving metaverse.
Blockchain-based virtual worlds are struggling to weather this storm, as on-chain data shows that trade continues to decline.According to the monthly magazine Summary report According to DappRadar, there were only 8,329 land sales in virtual reality projects in August 2023 (worth a total of $4.1 million), a 23% decrease compared to July 2023.
The decline in sales comes at a time when the entire crypto industry is trying to survive a bear market, coupled with regulatory pressure from US regulators.
according to data In terms of the NFT price floor, the average selling price of Decentraland has fallen 22% over the past 90 days to 0.5322 ETH per land (approximately $860 at the time of writing). Decentraland’s trading volume during the same period decreased by 40.5%. Other metaverse-focused ecosystems mostly follow the same trend.
But Sarah Gargelas, blockchain research analyst at DappRadar, says users and investors need to “internalize the utility of the evolving metaverse.”
“While it was initially conceptualized primarily as a digital arena for land sales and transactions, its scope has expanded significantly.”
Sara Ghergheras, DappRadar Analyst
He also suggested that the market will recalibrate the criteria analysts use to assess the success and potential of virtual worlds. Gargelas says that instead of “over-relying on metrics like land sales volume,” attention should be focused on continued development, innovation, and overall user experience.