Metaverse tokens down two thirds as users get bored and leave
Metaverse tokens burst onto the world stage in a tidal wave of huge promises and startling numbers. Experts touted Total Addressable Market (TAM) figures as five billion users and $13 trillion, and the world’s largest publicly traded social network, Facebook, changed its name to Meta and led over $15 billion in Metaverse spend. Since then he has spent this sum.
The active usage rate is declining rapidly and the value of most virtual lots has plummeted, with the average commercial volume of parcels declining by 98%. Promotions can’t make up for the Metaverse’s fatal weakness: lousy user engagement.
Active users and value drop throughout 2022
Speculation drove most of the surge in virtual land prices in 2021. Investors bought lots and then did nothing with them, and many ended up owning a property that no one wanted to visit. The small number of active users doesn’t help it matter. Users just don’t have much to do outside of developer-hosted events. According to DappRadar, Decentraland earns an average of 654 unique wallet shares per day.
Based on other calculations, Decentraland estimates the number of daily active users (DAUs) at around 8000. The project also says it has sold a notable number of items such as wearables and emotes worldwide. Decentraland acknowledges that DAUs have been declining since 2021 but says the core user base remains healthy.
Sandbox’s proprietary token, SAND, is down 87% since the beginning of the year. Investors have introduced brands like Atari and The Walking Dead to the Metaverse, and it’s gotten some traffic through its Alpha Season events. However, outside of the alpha season, users have barely bothered. On average, the sandbox earns 605 unique wallet shares per day. Even after increasing that DAU using the same calculation as Decentraland above, SAND is still worth over $100,000 per DAU.
The Metaverse token bubble burst in 2022. Virtual land trading volume has dropped by 98%. Metaverse tokens decreased two-thirds of their value this year.
Even Facebook cannot save metaverse tokens
Since Facebook changed its name to Meta, it has spent $15 billion building its metaverse, Horizon Worlds. However, the Wall Street Journal interviewed several Meta contributors who called their own project unusable. of the company’s 2022 goal. He also estimates that most creator-built worlds are never visited by anyone other than their creator. Only 10 m visits of more than 50 people.
In mid-September 2022, Vice President of the Metaverse Vishal Shah expressed his frustration with the current state of Horizon Worlds. He sent out a memo telling staff to use the rest of the year to “make sure we fix our quality gaps and performance issues before opening up Horizon to more users… The simple truth is when we don’t love.” we make it.”
Meta may have learned from its failed efforts with its multi-billion dollar stablecoin project Diem (formerly Libra): Launching a successful digital asset ecosystem isn’t as easy as it seems. It becomes dangerous when employees don’t even enjoy using it themselves. Around the world, Metaverse projects are retreating from hyped promises. Speculators realize that their undeveloped properties cannot be worth forever. Virtual events may get brief attention, but even a big name like Meta can’t support a house of cards.