Virtual land sales reached $500 million

Virtual land sales reached $500 million

Most major virtual real estate deals are in the top 4 metaverse group of the market.

According to MetaMetric Solution, real estate sales in the Metaverse have reached a milestone 500 million dollars in 2021. Many experts and analysis companies predict that this number will double by the end of 2022.

MetaMetric Solution, a US-based analytics and measurement company, said that 4 virtual universes will see revenue in 2021: Sandbox, Decentraland, Cryptovoxels, and Somnium. 501 million dollars through the sale of land.

However, sales of these Metaverse projects did not hit the milestone until January 2022 85 million dollars. MetaMetric forecasts to reach virtual land sales in 2022 First billion dollars.

According to CNBC, virtual home sales increased ninefold in November 2021. This sudden growth was thanks to the event of Facebook changing its name to Meta and announcing its strategy for developing the Metaverse for the next 10 years. Despite the heat drop, January sales are still 10 times higher than the same period in 2021.

BrandEssence forecasts that the Metaverse virtual lot market will maintain a compound annual growth rate of 31% over the period 2022-2028. “There are many risks in investing in virtual land, but the rewards will be very good if chosen correctly”, Janine Yorio, CEO of Repulic Realm, an organization specializing in virtual land consulting and investing, said.

The big ones dominate the race

Republic Realm spent 4.3 million dollars acquire some land on the sandbox platform. This company divided and built these lots into 100 islands with houses and boats and then sold them. The most expensive island is sold dearly $107,000.

Many investors question the valuation of this virtual country. The true value these digital assets bring and their future are disputed. Despite this, the virtual universe is still mainstream. New Metaverse projects come out every week.

Most of the revenue is still focused on the “Quad” metaverse of Sandbox, Decentraland, Cryptovoxels, and Somnium. These 4 projects have a total of 268,645 lots. The price depends on the area and amount of resources available on each piece of land.

Sandbox is the project with the most land with 166,464 pieces. The average price for a plot with an area of ​​96 m2 is 12,700 U.S. dollar. Decentraland, the Metaverse project with the largest market cap, has 90,600 shares, according to CoinMarketCap. The average price for a plot of 16 m2 has reached the mark here 14,440 U.S. dollar.

The factors that determine the price

Janine Yorio, CEO of Repulic Realm, said that real estate prices in the metaverse fluctuate depending on the buildings associated with that land. “You can move anywhere, so location doesn’t matter,” Ms. Yorio said.

According to CNBC, a property’s location is a key factor. The company Tokens.com set a world record when it decided to buy land 2.4 million dollars is located in the fashion district of the Decentraland virtual universe. The company plans to convert the area into an event and sales room.

CEO Tokens.com, Andrew Kiguel believes virtual land will take e-commerce to new heights. “We consulted a number of companies to help them build meeting rooms and work on the metaverse,” Mr. Kiguel said.

taste CEO adds that his company has bought 12 plots of land on the riverfront in Somnium. Tokens.com management believes that they will increase in price due to their beautiful location and limited quantity.

The virtual land fever has historically created many conflicting views and questions about the true value of the metaverse.

“The virtual universe is just a pyramid scheme,” said Edward Castronova, a communications professor at Indiana University.

Despite protests from veteran investors, Mr. Kiguel remains bullish on the Metaverse. “Young people today can learn quickly and invest in any asset class. They don’t set as many standards as the previous generation. The storm of non-fungible tokens (NFT) or blockchain technology is an example,” shared Mr. Kiguel.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page