Metaverse land prices made headlines a few months ago after soaring to unprecedented heights.
But global and crypto markets have since taken a hit – and so has virtual real estate.
But falling global markets aren’t the only reason that metaverse land prices are plummeting. Here, we’ll discuss the decline and whether you should buy now while prices are low.
Unlike Real Land, They CAN Make More Metaverse Land
We previously covered several platforms offering the cheapest metaverse land. The rise in the popularity of virtual real estate brought a host of new projects to the table offering metaverse land, and many of those developers are trying to compete by offering lower prices.
Anyone who has the right skills (or a willingness to learn them) can create more land for the metaverse. If supply increases faster than demand, the price falls. And there’s really no limit to how much they can collectively make.
The ongoing threats of recessions and economic downturn have forced would-be metaverse investors and enthusiasts to reconsider their expenditures. Since the metaverse is still in its early stages, most investors aren’t optimistic about an immediate return on their investment – and certainly not ahead of a looming recession.
In other words, demand has decreased in tandem with the overall economic downturn. Google Trends confirms a declining interest.
Of course, that’s not to say that metaverse land is dead in the water. It just means that more people are putting their plans for the metaverse on hold. Does that mean an opportunity for investors?
Is Now the Time to Buy?
Interest in the metaverse is likely to pick back up once global markets stabilize. So, should investors buy in the dip now and profit later? Not necessarily.
We’ve mentioned that the metaverse is still in its early stages and that conditions are right for supply to exceed demand. When something is in its early stages, there are many kinks to work out. The .com boom is a great example.
Once the metaverse becomes more streamlined, costs will likely decline. Consider how much less it costs to create a basic website now than it did twenty years ago. Now, consider how much less you’ll likely be paying for metaverse land – especially as startups try to set themselves apart with lower prices.
However, there could still be one advantage to buying in the dip: intrinsic value. In other words, if you can make more money from your metaverse land now than you’ll pay for it, buying in the dip makes sense. That’s especially true if you hope to get involved as an early adopter.
But if you only want to buy as an investment, that ship has likely (although perhaps not absolutely) sailed.