Attendance for Decentraland Metaverse Fashion Week plummets; Is Decentraland turning into a ghost town?
The blockchain-based virtual world, Decentraland, organized its second edition of the Metaverse Fashion Week, which unfortunately saw a sharp decline in attendance. Only 26,000 individuals participated this year, in stark contrast to the 108,000 unique attendees who were present last year.
Fashion Week on the Metaverse
The four-day event, held from March 28 to March 31, suffered a 76% reduction in attendance compared to last year, with just around 1,000 people being online at the same time. Surprisingly, the event featured leading fashion brands such as Dolce & Gabbana, Tommy Hilfiger, and Adidas as sponsors.
The valuation of Decentraland has reached a remarkable $1 billion, while its native token $MANA had previously achieved a market capitalization exceeding $6 billion. Nevertheless, the platform’s future has become a cause for concern following the decline in attendance at the second Metaverse Fashion Week and the reduction in weekly trading volumes of land NFTs.
The trading volumes for land NFTs on Decentraland have drastically decreased to a mere $50,000 per week, which is a stark contrast to the millions it had recorded in late 2021 and early 2022. The number of individuals participating in the buying and selling of Decentraland properties is also quite limited, with only 20 to 30 people involved. Additionally, the total count of landowners on the platform is low, with just 8% of the 98,000 land NFTs in circulation being owned by unique holders.
Brad Kay, a research analyst at The Block, expressed concern about the low number of traders and unique holders for Decentraland, indicating it as “definitely worrisome.” Furthermore, it is apparent that Decentraland still holds roughly 67,000 plots of land, suggesting that the low trading volume and ownership structure may be due to “big whales, insiders, or others hoarding supply,” as many are speculating.
Is Decentraland the only one struggling?
Numerous blockchain-based games are encountering difficulties in luring and retaining regular users, and Decentraland is no exception. The impact of the crypto winter is evident, and Decentraland’s challenges are indicative of the broader industry situation.
Decentraland has faced criticism over its gameplay, design, and reliability. Detractors have described it as a “poorly executed video game, comprising of inferior mini-games wrapped in a real estate investment scam masquerading as The Matrix.” Many notable personalities, such as Dan Olson, have expressed their discontent with the platform and harbor doubts about its future success.
Hunter Swihart, a metaverse architect, echoed these views, expressing his disappointment in the low usage of Decentraland despite enjoying designing digital spaces for the platform. He further stated that he wouldn’t be surprised if Decentraland ceased to exist in the near future.
Although the recent drop in attendance and trading volume has been a cause for concern, the organizers of Metaverse Fashion Week are determined to remain optimistic. Dr. Giovana Graziosi Casimiro, the head of Metaverse Fashion Week, highlighted the positives, stating that “despite lower attendance, we had tens of thousands of new visitors to the metaverse.” She also expressed confidence that they have improved the event’s experience from the previous year.
