Metaverse Mkt cap Declines To $7 bn; Meta, Decentraland & Sandbox Still Optimistic
By Vishakha Thakur
Mark Zuckerberg, the CEO of Meta and a zealous supporter of metaverse, has declared 2025 as a pivotal year for metaverse. As per Meta, the number of people using Quest & Horizon has been growing and the social media giant is working hard to make the metaverse more visually stunning.
Though Reality labs, Meta’s metaverse division that built the Quest family of virtual-reality headsets has invested over $100 bn in metaverse initiatives since 2020, it has also incurred cumulative losses exceeding $60 bn since then. In fact, in 2024 alone, Reality Labs reported quarterly losses of over $17 bn. Well, as Meta continues to dominate the VR/AR market with a 70% share, its revenue slightly rose 1% year over year to $1.08 bn, driven by hardware sales.
Well, in the broader metaverse space, the cumulative metaverse market capitalization has declined from a mark of $18bn to approximately $7.54 bn in mere two weeks. Over the past week, the top tokens of popular metaverse gaming platforms such as Decentraland’s MANA, Sandbox’s SAND, Axie Infinity’s AXS and Illuvium’s ILV have been trading mostly in the red with a decline of up to 25%. The major reasons include a significant decline in the value of virtual land plots and less number of users visiting the platforms.
But just like Mark Zuckerberg, the builders of metaverse are optimistic too. The two major platforms Sandbox and Decentraland have come up with new initiatives to attract users.
Sandbox recently announced a partnership with gaming giant Ubisoft, integrating characters from Ubisoft’s “Champions Tactics” game. The Champions Tactics NFT avatars were released on January 29 with each avatar being sold for 170 SAND which roughly makes around $88 each. If you buy a Champions Avatar in the Sandbox, you can unlock 3 Champions in Champion Tactics.
Meanwhile, Decentraland is set to host a unique Valentine’s Day event called the “Builder Talent Trail” on February 11, 2025. Builders will get a chance to showcase some of the most impressive virtual constructions in Decentraland and participants will get a chance to win $200 in MANA, by snapping a selfie at their favourite build and sharing it on the social platform X. Moreover, the most inspirational build will be awarded $1,000 in MANA.
Interestingly, Sandbox’s SAND, with a market cap of $968 mn, and Decentraland’s MANA, valued at $604 mn, have surged between 2-4% in the past 24hrs.
All in all, the platforms continue to innovate and attract users to metaverse. let’s now go to our special guest to know about the factors that can lead to a revival of metaverse and major tokens.
Well, while Meta and metaverse face significant challenges, Mark Zuckerberg and other platforms continue to innovate and expand, contributing to the sector’s growth.
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