In the Decentraland metaverse, some events are taking place to increase the platform’s attractiveness and attract new users, and recently the fashion week ended, although it lasted only 4 days for some reason.
✔️Only 26,000 unique users visited Fashion week, imagine these small numbers, while the project’s market capitalization is over $1 billion. However, I would like to note that the previous similar event that took place at the end of March was visited by about 100,000 unique users.
✔️Similar problems with attendance are also happening with The Sandbox and Axie Infinity. There was a small surge in activity at the beginning of the year, but the trading volume of NFTs on the platform and attendance continued to decline.
✔️The trading volume of NFTs in Decentraland is about $50,000 per week. For comparison, at the end of 2021, it was $1 million per week. And if we count the number of transactions with land plots, it’s only 20-30 deals per week, just ridiculous numbers for such a project. Moreover, most of the land plots are concentrated in the hands of whales: 8% of users own all the land of the project, and if they become disappointed with the project, a powerful price collapse will quickly begin (although they have already decreased many times from the highs).
????At the end of last year, there was a post about how destructive 2022 was for the metaverse (here). Although I recently explained why metaverses undoubtedly have a future (you can read it here). But it seems that the future of metaverses exists, but not for the current top projects. Many shortcomings, poor playability, cross-platform problems, and low user interest are dragging projects into the abyss. I am extremely skeptical about investing in these projects right now.
Not a trading recommendation.
