In 2021, as Facebook changed its name to Meta, it also made the “Metaverse” all the rage, and it is likely to become a new wave of trends. For a time, from Internet giants to ordinary entrepreneurs, even some countries announced that they would enter the Metaverse. For example, Baidu launched “Xiyang”, and South Korea announced that it would build Seoul into a “Metaverse city”.
At the same time, the wind of “real estate speculation” also began to make waves in the Metaverse world. In the hottest period, many business giants and star artists bought land in the virtual world at sky-high prices. At the time, it seemed that “Metaverse real estate speculation” was about to become a popular trend. If you don’t start early, you will regret it.
In November 2021, singer JJ Lin announced that he had purchased three virtual parcels of land on the Decentraland platform, costing a total of more than $70,000. Even at today’s exchange rate, it is equivalent to nearly 500,000 yuan.
In February this year, some media reported that Zheng Zhigang, a Chinese real estate tycoon, spent 32 million yuan to buy the largest piece of land in the Sandbox.
However, recently, according to the data provided by the Metaverse analysis platform WeMeta, the “Metaverse house price” has shrunk significantly, and many people who started at a high level may now be afraid of losing everything.
What is the price trend of “Metaverse Real Estate Speculation”? Is this the future or a bubble?
The logic behind “virtual real estate speculation”
Although everything in the “Metaverse” is digital and virtual, it’s not completely worthless. In short, the Metaverse can realize many ideas, ideas, and scenarios that are difficult to achieve in reality.
For example, you can open a virtual movie theater, so that friends from all over the world and in different regions can watch movies together anytime, anywhere; you can also create a virtual amusement park, a virtual exhibition hall, a virtual shopping mall…
In short, it can be said that in the Metaverse world, there is nothing that cannot be done, only unthinkable.
And these grand ideas, to be realized, are inseparable from the “virtual land.” No matter what you want to do in the Metaverse, you must first have the “earth”.
This is the same as in the real world, you have to have the land first, and then plan how to use the land.
After players buy plots in the Metaverse, they can build anything they want on their own plots; after the creation is completed, they can also conduct secondary sales.
It is not difficult to understand that the more players involved in the Metaverse, the higher the potential value generated. As in reality, in popular places in the Metaverse, the price of “lots” will also rise.
Each platform has its own pricing and measurement standards, which can be simply understood as buying land in different cities.
As a result, some virtual real estate companies will deliberately purchase a batch of virtual land plots first, then leave them vacant, wait for the land to appreciate and then resell for profit; or build some Metaverse facilities on the land to raise prices.
Therefore, this is the underlying logic of the hot and speculative nature of “Metaverse real estate speculation”.
The plot of land purchased by Lin Junjie plummeted by 80%
However, whether the assets in the Metaverse are actually “worthy” of their sky-high prices is a matter for debate. In reality, the sky-high real estate mansion relies on the real economy, anchors legal currency, and creates a lot of real value.
But in the Metaverse, it is even difficult to tell how the actual cost of a piece of virtual real estate is calculated. Could it be the human cost of the programmers who developed this code?
Will Metaverse Real Estate be a Bubble? Maybe this question is not easy to answer at present, but now the transaction price of virtual land has fallen sharply from the highest point, which may explain the problem.
As mentioned earlier, JJ Lin purchased 3 virtual land plots in November 2021 at a total cost of about US$70,000.
According to WeMeta data, on November 19, 2021, Lin Junjie purchased a virtual land named NEAREST to Genesis Plaza for $22,590.04;
On November 22, 2021, a virtual land named Prime Gallery 1 was purchased for $25,840.82; on the same day, a virtual land named Prime Gallery 2 was purchased for $25,840.82.
The total cost of the three pieces of land is US$74,271.68, which is about RMB 494,000 at the current exchange rate.
So, what is the current valuation of the three pieces of land that Lin Junjie purchased?
According to the data provided by the WeMeta platform, the current valuations of the three pieces of virtual land purchased by the above-mentioned Lin Junjie are US$4,183.19, US$5,095.11, and US$5,076.02, respectively, down 81.5%, 80.1%, and 80.4%.
My dear, this drop can no longer be described as a “half cut”. If in the real world, if housing prices plummeted at such a rate, how many people could afford it?
In addition to the plummeting prices, Lin Junjie’s popularity in these three plots is also “in the door.”According to the number of visits provided by the platform in the past week, only one of the three plots welcomed a visitor on August 9, and the remaining 6 days were unattended.
As a singer with a large number of fans in reality, JJ Lin is “ordinary” in the Metaverse. Is it representative enough to show that the Metaverse real estate bubble is about to burst?
Major mainstream platforms are showing a downward trend
The average number of simultaneous online users is only fifty or sixty
The data of some platforms fell by more than 90%
In fact, over the past year, all major Metaverse platforms have seen their data decline.
Let’s first look at the transaction data of the six mainstream Metaverse platforms Decentraland, The Sandbox, Voxels, SomniumSpace, NFT Worlds and Super World over the past year.
In the past year, since around November 2021, the average transaction prices of several major platforms have begun to rise to varying degrees; but since May this year, the average transaction prices of various platforms have begun to fall all the way;
Among them, NFT Worlds reached its highest point on February 21, 2022, with an average transaction price of $44,000; Decentraland reached its highest point on November 29, 2021, with an average transaction price of $37,000; The Sandbox on January 10, 2022 At the highest point, the average transaction price was $35,000.
However, from around May this year, the average transaction price of several companies began to drop significantly.
Recently, except for the average transaction price of Decentraland on July 18 this year, which exceeded $10,000, the average transaction price of the six platforms was below $10,000.
In terms of reserve price (that is, the lowest price among the land plots sold by the platform), among the six Metaverse platforms, NFT Worlds once set a record of US$29,960.41 on March 28, 2022.Before May of this year, the reserve price of the Decentraland platform exceeded $10,000 several times.
However, after May, the reserve prices of all platforms all fell all the way. For example, on July 18, the reserve price of NFT Worlds fell to $771.32.
In terms of median selling price per square meter, several major platforms have reached highs in November 2021, and most platform data is between $20 and $70. Among them, Voxels achieved a median price of $74.25 per square meter on November 29, 2021.
Since May, the median price per square meter of several major platforms has begun to decline. Although Somnium Space reached US$70.37 in April this year, it failed to recover the overall decline.Recently, the median price per square meter of several major platforms has not exceeded $20.
In terms of the average number of simultaneous online users in the past year, before May this year, the average number of simultaneous online users in Decentraland was above 1,200; the NFT Worlds platform also had more than 1,000; but since then, this data has also dropped significantly, and by August this year On the 8th, the average concurrent online users of NFT Worlds was only 59, and Voxels was only 52.
As can be seen from the data of the above platforms, around November 2021 and May this year will be a watershed. Among them, since November last year, the popularity of the “land speculation” in the Metaverse just started, and since May this year, the popularity can be said to have dropped with the naked eye.
In addition, it is worth noting that in the above-mentioned data, the performance of all platforms a year ago, that is, around August 2021 is basically the same as that in August 2022, and some are even worse than the same period last year. This shows that the achievements of Metaverse Real Estate in the past year are almost returning to the starting point.
Among the major platforms, the relevant data of NFT Worlds has the most “ups and downs”, which is more explanatory.
In terms of average transaction price, in the past year, NFT Worlds peaked at $43,568.21 on February 21, and on August 8, the price plummeted to $1,589.28, a drop of 96.35%;
In terms of market value, NFT WORLD reached a high of $429,077,129.65 on March 21 this year, but on August 8, its market value was only $18,730,721.22, a drop of 95.63%.
In terms of the average number of simultaneous online users, on May 2 this year, this data NFT Worlds was 1530, while on August 8, it was only 60, a decrease of 96.07%.
In fact, not only NFT World, but also well-known platform data such as Decentraland and The Sandbox are also not good-looking.
According to statistics from Sanyan Finance, as of August 8, the average transaction price of Decentraland has dropped by 77.9% compared with the highest point in the past year; the average transaction price of The Sandbox has dropped by 87.43% compared with the highest point in the past year;
As of August 8, the market value of Decentraland has fallen by 68.9% from the highest point in the past year; the market value of The Sandbox has fallen by 56.3% from the highest point in the past year.
As of Aug. 8, Decentraland’s average concurrent users were down 68% from their highest point in the past year.
Obviously, the popularity of “Metaverse Real Estate Speculation” is like a flash in the pan, and it will be revealed in less than a year. This seems to indicate that the current “Metaverse” is really just a concept, and it remains to be seen whether it can create actual value in addition to speculation and speculation.
What do you think of the Metaverse, welcome to leave a message.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/has-the-metaverse-housing-bubble-burst-the-plot-of-land-purchased-by-lin-junjie-has-fallen-by-80-and-there-are-only-50-people-online-on-the-platform/ Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.