DappRadar explains that lower trading volumes may simply indicate declining asset values rather than a lack of interest. However, eight of the top ten Metaverse projects saw significant declines in sales.
By 80% compared to the second.
However, analytics firm Dappradar indicated that interest in virtual worlds still remains.
The Metaverse sector has recently received some unfavorable attention, notably with allegations of low user engagement on various platforms, such as Decentraland and Meta – reports which they have refuted.
According to a report published on October 20 by DappRadar, although trading volumes fell dramatically in Q3, the average number of NFT sales for these ten projects fell by just 11.55% compared to Q2.
DappRadar explains that lower trading volumes may simply indicate declining asset values rather than a lack of interest, noting:
“This is a positive indicator since it suggests that interest in these kinds of projects has not faded. Instead of a lack of interest, the drop in cryptocurrency prices has hurt the projects' overall trading volume.”
However, eight of the top ten Metaverse projects saw significant declines in NFT sales counts during Q3, with Yuga Labs' Otherside witnessing a 74% decrease for the period.
The Sandbox and former Minecraft-based platform NFT Worlds V2, which had NFT sale count gains of 190% and 79%, respectively, drove the positive action.
DappRadar attributed this to the excitement around The Sandbox's Alpha Season 3, which includes a slew of new gameplay experiences and collectibles. While the removal of NFT Worlds V2 from Minecraft may have been viewed as a "buying opportunity," the value of its NFTs decreased by 90% in Q3.
Virtual lands floor prices plummet
Meanwhile, DappRadar's report suggested that the average floor price for NFT land plots had reduced by 75%, which might be one of the reasons for the significant drop in trading volumes.
While the value of any piece of real estate, virtual or otherwise, is subject to swings, DappRadar claimed that Metaverse real estate is now severely depreciated, adding that the decreasing prices are in line with the crypto sector's broader bear market.
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