The Metaverse crypto space isn’t as hot as it was back in 2021. Many people, companies included, were hyped because they thought virtual worlds were where things were heading in the future. That isn’t the case now
According to CryptoSlate, the Metaverse market has dropped from $23.54 billion to just $4.9 billion. That’s a huge loss. Big investors seem to be looking elsewhere, moving toward AI, DeFi, and Real World Assets (RWA).
So, does this imply that the Metaverse is dead? According to Glassnode, the Cost Basis Distribution (CBD) metric indicates that there are still plenty of people who have not sold their Metaverse tokens, and some are even buying more.
Even though the prices have gone down, tokens like the Sandbox (SAND) continue to get bought. That means some investors still believe in these projects and see them as good long-term bets.
According to Glassnode’s report, SAND holders aren’t backing down despite price swings. Another Metaverse token, MANA, is seeing strong buying activity around $0.60, meaning people are taking advantage of lower prices.
AXS has been steadily accumulated over the past two years, proving that some investors still have faith in the project. Instead of selling, they’re holding tight and lowering their cost basis while waiting for a possible comeback.
Tracy Jin, COO of MEXC, thinks the excitement around the Metaverse faded because it didn’t deliver on the huge expectations. “The hype around these projects has faded considerably in recent years,” she said. Investors have shifted their focus to where they can make more profit.
Metaverse is different from memecoins and Defi, they rely on people to actually use the platform. So, without real-world demand, they have been unable to stay relevant.
With slow adoption and limited use cases, these tokens have found themselves in what Jin calls a liquidity trap, where there just aren’t enough buyers.
Institutions have mostly moved on, but big tech companies like Meta, Apple, and Nvidia are still investing in VR and AR. That means the Metaverse concept isn’t dead; it’s just evolving. If blockchain-based projects can keep up and find new ways to attract users, they could still make a comeback. But for now, the hype has cooled down, and investors are playing the long waiting game.
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