Amid the uncertain landscape of development, nearly 92% drop has seen across in the cryptocurrencies of major metaverse projects. This includes The Sandbox (SAND), Axie Infinity (AXS), Enjin Coin (ENJ), and Decentraland (MANA).
In 2021, a lot of investors jumped upon the opportunity to capitalize on the sudden spike in metaverse tokens. However, things did not go well for them as the crypto space, hinted at by the bizarre crypto winter, threw investors into depression.
While the investors of ENJ suffered losses, data displays a big hole in the pocket of Axie Infinity and The Sandbox’s investors.
In 2021, the metaverse sector was blossoming, with the cumulative market capitalization of the ‘big four’ metaverse projects reaching a staggering $16 billion. However, this euphoria seems to have faded away in 2023, as a sharp decline of 92% has been witnessed across the industry.
The overall market cap of ENJ, MANA, AXS, and SAND fell by 92% after witnessing a peak of $16 billion in November 2021. However, this euphoria seems to have faded away in 2023. At the time of writing, the cumulative market cap of these four tokens is merely $1.23 billion.
Decentraland, a virtual real estate platform that boasted a nearly $9 billion market capitalization in 2021, is now struggling to maintain a market cap of half a billion dollars. As of the time of writing, its token, Mana, is trading at around $0.29, marking a 94.38% decline from its peak at $4.80, according to CoinMarketCap.
The reason behind this is the terrible number of inactivity and depleting interest of users from the metaverse projects. On the other side, some experts are criticizing the creators for making it a graveyard due to turtle pace progress.
The Metaverse sector is also juggling through making its way to achieve regulatory compliance. Governments and authorities around the world also raise questions on the security of metaverse users as well as show their skepticism about illicit activity that could take place in the virtual world.
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