A plot of land in Axie Infinity was recently sold for $2.5 million or 550 ETH which marked the largest sale for a single plot of virtual land.
According to Grayscale, the global market for goods and services in the metaverse will soon be worth $1 trillion.
Decentraland, a popular metaverse, consists of 90,000 parcels of land having separate districts for gambling, shopping, fashion, art, etc.
Tokens.com, a blockchain tech company, has acquired 50% of the Metaverse Group for $1.7 million.
Boson protocol has bought an entire block of Vegas City gambling district in Decentraland.
Wave has hosted a browser-based VR concert of Justin Bieber and is researching the possibilities of monetizing virtual real estate.
The term ‘metaverse’ has entered mainstream public consciousness with the recent NFT boom in the blockchain ecosystem and Facebook’s rebranding to ‘Meta’. Global interest in the digital metaverse skyrocketed last month following the announcement of Mark Zuckerberg regarding the new name of Facebook.
The public market also witnessed the launch of the first metaverse ETF called Roundhill Ball Metaverse ETF by Roundhill Investments in partnership with Matthew Ball, Managing Partner of an early-stage venture fund called EpyllionCo, to offer exposure to the growing metaverse market. Investors are now focusing more on the concept of virtual real estate and rushing to buy digital lands. But real estate investing in the metaverse is highly speculative and it is unpredictable to say whether it is the next big thing or the next big bubble.
Metaverse in brief
Metaverse refers to an alternative digital universe. It is like a parallel digital world alongside the real world. Though the concept of creating an alternate digital universe seems new and unrealistic, the idea has been well established for decades. The term was first coined in a book called ‘Snow Crash’ written by Neal Stephenson in 1992. People who watched ‘Ready Player One’ or have played ‘Second Life’, will have a general idea of metaverse experience.
According to the latest report published by the digital asset manager, Grayscale, the global market for goods and services in the metaverse will soon be worth $1 trillion. Technologists believe the metaverse will grow into a fully functioning economy in a few short years. The industry has the ability to offer a synchronized digital experience and will be integrated into our daily life similar to how email and social media networking are functioning today.
Virtual real estate in the metaverse
The virtual real estate concept in online games like Second Life and Runescape has been around for a decade. When the stock market crashed in 2008, a trend of realtors leaving their jobs to be virtual real estate brokers in Second Life started. Soon enough, the virtual economy of the online game started witnessing a surge as brokers and agencies completely focused on selling in-game property. Second Life has demonstrated the capability of the virtual real estate market, and several other worlds like Sandbox, Cryptovoxels, Decentraland have popped in the recent years becoming one of the most popular metaverses these days.
Metaverse Group, one of the world’s first virtual real estate companies, plans to build a portfolio of properties in Decentraland along with Somnium Space, Sandbox, and Upland.
The company is based in Toronto and has its virtual headquarters in Crypto Valley (Metaverse’s Silicon Valley), Decentraland metaverse. Decentraland is one of the latest popular multiverses having more than 300,000 monthly active users. It consists of 90,000 parcels of land, each roughly 50 feet by 50 feet, and has separate districts for gambling, shopping, fashion, and arts.
Tokens.com, a blockchain technology company focused on NFTs and metaverse real estate, acquired 50% of the Metaverse Group for $1.7 million. After that acquisition, the company has broken digital ground on a tower in Decentraland. Popular brands like Louis Vuitton, Gucci, Burberry have also entered metaverse through NFTs which makes the executives of Tokens.com company optimistic that the tower will soon generate revenue from leases and advertising for brands. Recently, Tokens.com has closed a large land deal in Decentraland’s fashion district for around $2.5 million.
Boson protocol, a decentralized network focused on the metaverse concept, has bought an entire block of the Vegas City gambling district of Decentraland. The company believes that the space has the potential to become a commerce point where products from the real world can be exchanged for NFTs. The co-founder and chief executive of Boson Protocol, Justin Banon, said that the real world and the online world will merge into one hybrid universe where fungible and non-fungible intersect at multiple points.
Recent land deals
The Metaflower Super Mega Yacht was sold for 149 ETH or around $650,000 in late November which is the most expensive NFT item sold from the Sandbox metaverse.
100 private island NFTs in the Sandbox called Fantasy Islands, developed by Republic Realm was sold out in just 24 hours, and the floor price on the islands is currently around 60 ETH.
American rapper, Snoop Dogg, made history by recreating his California mansion virtually in the Sandbox metaverse. When the rap icon tweeted asking if anyone wanted to be his virtual neighbor, the plot next to Snoop Dogg’s was sold for 71,000 SAND or around $450,000.
A plot of land in the Axie Infinity, a popular play-to-earn NFT game, was recently sold for $2.5 million or 550 ETH which marked the largest sale for a single plot of virtual land.
The previous Decentraland record of $913,000 has doubled when Tokens.com bought 116 land parcels in the metaverse for $2.4 million.
The Wave XR, a US tech startup, hosted a browser-based virtual reality live concert experience with pop singer Justin Bieber performing as a digital avatar. The company earned profits from virtual merchandise and brand sponsorships from artists and celebrity shows. According to the co-founder and chief executive, Adam Arrigo, the company is researching the possibilities of monetizing virtual real estate.
The key to a successful metaverse existence lies in its user base. Communities are the driving force for virtual worlds and the same can be applied to any virtual economy. The high demand and value attached to the digital assets in the metaverse is the main reason for these huge sales. Even though virtual real estate seems growing rapidly at present, it is difficult to make any predictions about what the future may hold for metaverse real estate.