America’s billionaire and entrepreneur, Mark Cuban who is a diehard fan of the crypto space is not having it with Metaverse.
Mark believes that owning pieces of land in the Metaverse is not a wise decision to make. According to him, “The worst part is that people are buying real estate in these places. That’s just the dumbest shit ever,”
During an interview with Altcoin Daily, he compared Metaverse lands to a Uniform Resource Locator (URL) and an Ethereum Naming Service (ENS). He claimed that the Metaverse was not as good as these tools because there is no control over the volume of non-fungible tokens (NFTs) that can be created.
Putting his stance into perspective, he reiterated that the Metaverse “won’t be just one size fits all. There’ll be a lot of different applications. And a lot of ways of defining the metaverse. But right now it’s more talk than anything,”
Real Estate Value in The Metaverse Declines by 85%
The cost of real estate in the Metaverse is plummeting even after McKinsey predicted a $5 trillion market value by 2030.
The crash was attributed to waning interest from users including the market downtrend. Gradually, the massive decline in price is edging towards almost 85%, since the market downtrend.
Sandbox and Decentraland have not had it any different as they have experienced a significant decrease in their valuation amongst other key metrics.
At the beginning of the year, Decentraland experienced a surge in the cost of its real estate. An average piece of land in Decentraland peaked at $37,238 in February. Presently, it is worth only a little above $5,163. Sandbox is presented with a more sad scenario, an average piece of land was worth $35,000 but has now dropped to as low as $2,800.
Altogether, the average amount acquired from the sales of real estate in the Metaverse was around $1 billion in 2021. In August 2022, research shows that it has drastically reduced to $157 million, only about 15% of the previous year. Many other metaverse projects developed on the Ethereum (ETH) blockchain are faced with the same fate.
While the outlook has also fueled a massive loss in Meta Platforms metaverse unit, innovators are not relenting in building in the space.