Bad Drop, Metaverse Falls Trading Volume 80 Percent

Trading activity on the metaverse platform is decreasing. (Photo; Doc. Techaeris)

JAKARTA Metaverse has become a hot topic in the past year, especially since Mark Zuckerberg announced Facebook's rebranding to Meta in October 2021. Despite causing a crowd in the media, the volume of metaverse trading in the third quarter of 2022 has decreased by 80 percent.

According to a blockchian firm DappRadar report, there are the top 10 metaverse projects that have decreased compared to the previous quarter. Even so, the transaction plummeted, the analytic firm explained that interest in the metaverse still exists.

The Metaverse sector has been hit by negative news lately, especially around low user activity recommended on specific platforms, such as Decentraland and Meta. Both platforms have denied the reports.

DappRadar noted in a October 20 report that while trading volume had fallen during Q3, the average number of NFT sales for these 10 projects only fell 11.55 percent compared to Q2.

We consider this a bullish sign because it shows that hype for this type of project does not decline. In contrast, the fall in the price of cryptocurrencies has affected the overall volume of project trading instead of lack of interest," wrote a statement from DappRadar, quoted by Cointelegraph.

However, a warning to this sentiment is that eight of the top 10 Metaverse projects experienced a significant decline in their number of NFT sales during Q3, with Yuga Labs' metaverse platform Otherside, experiencing a 74 percent decline for the quarter.

Positive measures were primarily driven by The Sandbox and former Minecraft-based platform NFT Worlds V2, which saw an increase in the number of NFT sales by 190 percent and 79 percent, respectively.

DappRadar attributes this to the hype surrounding The Sandbox's Alpha Season 3 which offers a number of new gaming experiences and collections. While NFT World's V2 issued from Minecraft may have been seen as a "purchase opportunity" as its NFT value fell 90 percent in the third quarter.

Land Price Virtual Anjlok

In addition, DappRadar also reported that the basic price for virtual land also fell by 75 percent. This decline is thought to be one of the causes of the drop in trading volume in the metaverse sector. On the other hand, virtual real estate prices and other metaverse properties are experiencing price fluctuations.

DappRadar assesses this decline following the condition of the crypto bear market that has taken place in recent months. The real estate metaverse is currently highly appreciated, according to DappRadar.

DappRadar was forced to maintain Decentraland's metaverse infusion data submitted last week, which has been interpreted meaning that platforms like Decentraland have fewer than 40 daily active users. The company also says that its users' data tools only track user interactions with blockchain, usually in transaction cases, and do not calculate non-blockchain based activities.

Sandbox tweeted on October 10 that it had reached 39,000 daily active users, and 201,000 monthly active users for the previous 30 days. Decentraland also reported having 8,000 daily active users and 56,697 monthly active users on October 8, as reported by Cointelegraph.