There’s been a lot of talk about Metaverse real estate being a bigger fizzle than The Flash.
Decentraland (Mana 2.77%) and The Bored Ape Yacht ClubOtherside continues to have strong sales records overall, sandbox (sand 1.98%) After a freezing crypto winter, it’s slowly growing. They all point to potentially warranted interest in non-fungible token (NFT) real estate.
problem of scale
Many consider the Metaverse to be nothing but a hamburger with no real interest except for a few people who have more money than senses. It is a growing market with great potential for
A problem many encounter when considering this new method of trading in the virtual world is that of scale. For example, when we think about something more familiar, such as the U.S. single-family real estate market, we are looking at a pool of approximately 82 million homes that could come up for sale at any moment. Interestingly, however, in the US housing market, he only sold 6.12 million homes in 2021. That means he sold just over 7% of his single-family home inventory that year.
The metaverse only has about 300,000 plots. This represents about one-third of the entire US housing market.
According to a recent report on the state of virtual real estate, January 1st was a fairly normal day in the metaverse, with a total of 317 among The Otherside (316) across the three major platforms that track virtual real estate in the metaverse. There were sales of , Sandbox (31), and Decentraland (24). Annualized, that translates to 115,705 sales, or nearly 39% of those plots that change ownership of their virtual properties.
So, really, it’s of great interest to both land speculators and landowners with bigger plans.
real estate action location
The big three Metaverse real estate platforms, The Otherside, The Sandbox, and Decentraland, are in various stages of development, making it difficult to directly compare sales activity. However, technically speaking, you can expect the most trading activity to occur on The Otherside.
There is a reason for this. The Otherside is in a pre-release stage and landowners cannot visit their land or do anything useful other than buy and sell it.
The Bored Ape Yacht Club has revealed that owners will be able to commercialize their property, but nothing will happen as the platform is not complete at this time. This means that many people are still speculating on these properties and frequently exchange these property NFTs.
Sandbox and Decentraland have been on the hook for deals, but many of the land parcels are more or less permanently out of circulation by the people who actually use them.
The sandbox is not yet fully functional, but owners can build properties and renters can negotiate lease/construction agreements with large landowners. Decentraland has been fully operational for some time, and brands and landlords are actively seeking properties that can be used to establish a permanent face for their brands and a base for their business.
The Metaverse is a lively place for real estate sales
There are many real estate deals in the metaverse, and while sales numbers can be quantified, tracking other types of deals such as rentals and increasingly common build-to-lease agreements is much more difficult. It Is difficult.
Investors who think the Metaverse is nothing more than smoke and mirrors may want to know how much money is in motion on any given day. For example, The Otherside said he traded real estate worth a total of $902,000 on January 1st.
Sales are one way to gauge investor interest. Another market cap is important even after crypto winter begins. ape coin (Ape 2.66%)one of the two coins used in The Otherside, is worth about $1.5 billion, Decentraland’s MANA is worth $1.1 billion, and The Sandbox’s SAND token is worth almost $1 billion.
Metaverse’s post-renaming bubble has very likely passed, but there is a lot of value in real estate in the metaverse, and a lot of value that could be generated from activities beyond basic land speculation. There is activity out there, real money being spent very seriously, and more brands and businesses interested in the metaverse every month.