The Decentraland metaverse – Decline continues

The Decentraland Metaverse Decline Continues

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.