Despite having multibillion dollar market values, two of the major GameFi platforms, Metaverse Decentraland and Sandbox, have been seen to be struggling to sustain active user bases for weeks now.
News in a Glimpse:
- Metaverse Decentraland and Sandbox, two of the major GameFi platforms, were apparently having trouble keeping their active user bases.
- On October 10th, DappRadar only counted 379 Metaverse Decentraland daily active users and 616 Metaverse Sandbox daily active users.
- “Active users” according to DappRadar are defined as unique wallet addresses that interact with a certain Dapp’s smart contracts.
- The trading volume for the ten metaverse projects may have dropped by 80% from the second quarter to the third.
- When compared to the second quarter, NFT revenues of the top 10 metaverse projects decreased by 11.55% in the third quarter.
One of the terms and projects that generated a lot of buzz in 2021 was the “Metaverse,” which was popularized by a number of internet businesses, including Meta. Many others were eager to learn more and give it a try because it had been the talk of the town for a time. This led to the creation of various worlds in the metaverse, but these regions now appeared to be deserted.
According to reports, the Web3 space community appears to have lost interest in the metaverse game. Two of the biggest GameFi platforms, Metaverse Decentraland and Sandbox, are reported to be failing in maintaining active users despite having multi-billion dollar market valuations, according to statistics from the DappRadar, a service that offers insights into decentralized apps.
According to DappRadar only 379 Metaverse Decentraland daily active users and 616 Metaverse Sandbox daily active users were present on October 10th, according to the study. Despite this, the market value of both GameFi ventures is above $1.2 billion. According to DappRadar, “active users” are defined as distinct wallet addresses that engage with a certain Dapp’s smart contracts. In other words, it may exclude users who are simply exploring the metaverse without engaging in any smart contract transactions.
However, unlike Web2 games like Axie Infinity or Alien Worlds that need players to engage with the smart contract regularly, users are not obliged to make transactions frequently in Sandbox and Decentraland, which in some ways explains why there aren’t as many active users.
Lonelyverse and Land Prices
The 10 metaverse projects’ third-quarter trade volume may have decreased by 80% compared to their second-quarter performance, the research claims. Additionally, it was observed that the NFT sales of the top 10 metaverse projects fell by 11.55% in the third quarter compared to the second quarter.
However, statistics like DappRadar continue to be optimistic and assert that consumers’ interest in virtual worlds is still present. The aforementioned market expert went on to say that reduced trading volumes are just a reflection of falling asset values, not necessarily a sign of a lack of interest. The enthusiasm around these metaverse initiatives, according to a DappRadar official, has not reduced; rather, it has been impacted by the decline in bitcoin prices.
According to a different DappRadar analysis, the reported 75% decline in the floor pricing for NFT land plots is thought to be the cause of the decline in trading volume. Despite the value of any piece of real estate being subject to change, DappRadar further noted that “Metaverse real estate is now severely devalued.”
With the help of this report from DappRadar, the analyst addressed a prior one that had been misinterpreted by some users, who believed that well-known metaverse projects like Decentraland had less than 40 daily active users. They said that they do not include non-spending users or “non-blockchain based activity” when determining the value of any piece of real estate.
The next day, October 8, Decentraland announced having 8,000 daily active users and 56,697 monthly active users. On October 10 of last year, Sandbox tweeted that during the previous 30 days, they had reached 39,000 daily active users and 201,000 monthly active users. Despite the fact that each platform has thousands of active users, some people are still pessimistic and consider these numbers to be insignificant for massive and well-known sites like Decentraland and Sandbox.
Is Metaverse the Future?
According to the report, the metaverse has the potential to create up to $5 trillion in value by 2030, making it inevitable given that, as stated in the DappRadar quarter three report, it has a big influence on both our professional and personal life.
According to the paper, Meta’s Connect event demonstrated that the metaverse would not displace the real world or the ties that bind people together; rather, it will simply supplement them and allow for unlimited movement between them. In essence, the metaverse aims to expand human experience rather than limit it. The research did emphasize, however, that team leadership is essential to achieving this objective.
Companies from a variety of sectors, including entertainment, retail, fashion, and even sports, are gradually making their way into the metaverse. They already have a solid brand reputation or name in the real world, and they also want to create it in the online environment. Nobody really knows, but one thing is certain: it’s either their new strategy for connecting with their target demographic or a method to safeguard their legacy going forward. Although the metaverse may not be the future, it is here to stay.