Over the past 12 months, the metaverse has been the buzzword in the Web3 space. However, recently, the average price of virtual real estate in the metaverse has fallen by more than 80% of the all-time high price, which has led many investors to question whether the metaverse is going to “cool off”.
Recently, the price of virtual real estate in the metaverse has plummeted. According to CoinTelegraph, according to WeMeta data, the price of virtual land has dropped significantly in 2022 due to waning user interest and the impact of the bear market.
Looking at the six major Ethereum metaverse platforms, the average price per digital land parcel fell from about $17,000 in January to about $2,500 in August, a drop of nearly 85%. Prior to that, CNBC reported that the average price of a plot in the metaverse was $20 in 2017; rising to $6,000 in 2021. However, just over half a year into 2022, the six largest virtual properties based on Ethereum have seen “precipitous” declines. WeMeta’s data shows that the three virtual properties bought by singer JJ Lin in Decentraland for $123,000 in November last year are now worth about $16,000 – a loss of 86.5%.
The virtual real estate of Yuan Universe has been in the limelight because of the star power and influence of JJ Lin and Jay Chou. Now the value has reached the top again because the stars have also suffered a plunge. The fall in the value of the virtual real estate has two factors:
1. the plunge in value of global crypto assets.
2. The price of metaverse virtual assets is closely related to the crypto market;
3. Previous purchases of virtual land were speculative. Thus, the price inflation of these parcels of virtual land became a game of passing the buck, and when there were no buyers, the price plummeted.
The plunge of metaverse virtual assets reminds people of the bitcoin plunge. The price of bitcoin has fallen below $20,000, a 2/3 drop from its highest price in history, according to the ESM platform, but over the years, bitcoin investors have become more and more “immune” to the plunge, with their chips increasing rather than decreasing. The plunge in virtual real estate in the metaverse will also not affect the builders of the metaverse world too much. The metaverse is newer than Bitcoin, and it will take longer to prove its value in the early stages of development.
The emergence of cryptocurrencies such as Bitcoin and blockchain is a great inspiration for CBDCs, digital economies, and the metaverse. Blockchain technology has been widely applied in various industries. It is believed that a metaverse world based on blockchain technology is expected to become a reality one day.
So, what exactly can blockchain bring to the metaverse? According to the white paper of AET, blockchain provides the technical framework necessary for the metaverse’s basic organizational, governance and economic models, which can effectively solve the problems of Identity and Economy.
In terms of the economic model:
The AET public chain can provide a payment and clearing system for the metaverse that fits seamlessly with the virtual space of the network, and use the characteristics of smart contracts to decentralize the contracts in a programmed, non-custodial, verifiable, traceable and trustworthy way, thus significantly reducing the possible harmful behaviors such as rent-seeking, corruption and underhanded operation in the financial system, which can be widely applied in the financial, social and gaming fields. AET, running in the public chain system, can be used in virtual markets and art galleries in the metaverse world, becoming the key to transactions in metaverse economies and realizing property and identity authentication.
In terms of the organization model:
The metaverse is a “parallel world” to the real world, which enhances the real world, especially which will definitely make changes to the real world, especially in the user relationship. A decentralized, fairer and more equal world is the ideal relationship that metaverse wants to build.
Blockchain technology can solve the problem of decentralized value transmission and collaboration of platforms, and solve the monopoly problem of centralized platforms to realize decentralization.
It ensures that the AET public chain is completely decentralized, fair and impartial.
In terms of the governance model:
The governance model of the AET community will also serve as a case study to the metaverse world.
The AET community adopts the “strong management + strong community” governance model.
“Strong Management” means that for each ecological project, AET Community will form a management team to realize global coordination in the form of a distributed team.
The “Strong Community” strategy is to select talented people in the community in an open, fair and impartial manner, so that talented people in the community can truly participate in community construction, form a semi-full-time community team, and elect a community committee in a competitive election. The community council has a degree of independent budgeting and funding authority. “Strong Community” + “Strong management” will work together effectively in an open, fair, and equitable collaborative order to move forward in an orderly manner.
Blockchain is one of the important technical foundations of the metaverse, and has become a bridge between the virtual world and the real world, turning the “virtual world” into a “parallel universe”.
