Facebook’s Meta rebrand caused the metaverse based projects to become a portfolio staple for crypto industry experts. The second largest virtual land metaverse, Decentraland, was no different. While it grew at unprecedented rates initially, the crypto slump slowed down the blockchain project. Many organizations, including Grayscale Investments, have claimed that the industry has the potential to be worth $1 trillion. The Spanish government is facilitating the growth of Metaverse in the country, doubling down on the same ideology. There is a possibility that this will affect Decentraland.
In recent reports, the Spanish government plans to develop Metaverse-related projects in the country. In addition, they are incentivizing individuals and companies to build in Spain with grants. A total of $4 million has been set aside for such grants. Moreover, the project will be handled by the Ministry of Economic Affairs and Digital Transformation. The same will be available to those who develop Metaverse projects within the European Union. A minimum of 25% of the organization’s members must be women. Since Decentraland lags behind the biggest Metaverse platform, The Sandbox, this could be a huge boost for the Metaverse and especially Decentraland. Furthermore, the virtual world has also lost its charm over the past few months. LAND plot sales in Decentraland have been declining month on month since January this year. As of June, sales had dropped to just under $690k from their all-time high of $6 million six months ago.
Decentraland Coin Prices Slump Despite Increasing Volume, Records Lowest LAND Sales 2022
Two reasons account for this, the first being the declining price of LAND in Decentraland. The plots had been selling at their lowest price ever until last month, dropping from $6.1k in January to $3.4k last month. In spite of some improvement this month, the price remains at $3.7k. Secondly, the low prices aren’t improving the sale value regardless of the increasing volume. Because of this, despite selling 1,009 plots last month (the highest in six months), sales remained at $690,000. Additionally, only 371 plots have been sold in July as of 16 July. At this rate, only 742 plots of LAND will be sold in Decentraland by the end of July, making it the worst month since August 2021.
However, this can be avoided if the Spanish government plans on working with Decentraland.