Q3 trading volume for the top 10 metaverse projects may be down 80% compared to Q2, but analytics firm DappRadar suggests interest in virtual worlds still remains..
The metaverse industry has been hit with a lot of negative press lately, particularly around allegedly low user activity on certain platforms.such as Decentraland and Meta, reports that have been refuted.
DappRadar noted in an Oct. 20 report that, while trading volumes have taken a heavy hit during the third quarter of the year, the average number of NFT sales for these 10 projects only decreased by 11.55% compared to the second quarter.
DappRadar explains that lower trading volumes could simply reflect declining asset prices and not necessarily a lack of interestnoting that:
“We consider this to be a bullish sign because it shows that the hype for this type of project has not diminished. Instead, the drop in cryptocurrency prices has affected the overall trading volume of projects, rather than a lack of interest.”
A caveat to these sentiments is that 8 of the top 10 metaverse projects saw significant declines in their non-fungible token (NFT) sales during Q3; for example, Yuga Labs’ Otherside saw a 74% decline for the quarter.
The positive action was primarily driven by The Sandbox and the old Minecraft-based platform, NFT Worlds V2, which saw NFT sales count increases of 190% and 79% each..
DappRadar attributed this to the hype surrounding The Sandbox Alpha Season 3., which offers a series of new gameplay experiences and collectible items. While Minecraft’s ban on NFT Worlds V2 may have been seen as a “buying opportunity” as the value of its NFTs fell 90% in Q3.
The minimum prices of virtual lands plummet
For its part, DappRadar’s report indicated that NFT parcel floor prices had decreased by 75% on average, which may have been one of the reasons trading volumes had decreased so much..
While the value of any piece of real estate, virtual or otherwise, is subject to fluctuations, “Metaverse real estate is currently highly depreciated,” DappRadar stated.adding that the declining prices are in tune with the broader bear market in the cryptocurrency sector.
DappRadar was forced to defend its metaverse data last week, which had been interpreted to mean that platforms like Decentraland had fewer than 40 daily active users..
The firm also noted that its user data tool only tracks user interaction with a blockchain, typically for transactions, and does not count “non-blockchain-based activities” such as users not spending money.
Sandboxing tweeted on October 10 that it had reached 39,000 daily active users and 201,000 monthly active users in the previous 30 days.
Decentraland also reported that it had 8,000 daily active users and 56,697 monthly active users as of October 8..
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