- The metaverse seems to have created a new real estate market that, in recent months, has acquired significant relevance and cannot be ignored.
- The Metaverse has the potential to become a $ 1 billion annual revenue opportunity.
Contrary to what many might think, Mark Zuckerberg’s Metaverse is not the first to hit the market. The reality is that it is a market with several years of development where companies such as The Sandbox, Decentraland and Axie Infinity.
However, it is true that since Zuckerberg’s announcement regarding Meta, the metaverse has gained popularity which equates to increased attention. Thus, in recent weeks, the world has been filled with news related to large companies like Adidas buying land in the metaverse. So the question that seeks to answer is:How much does it cost to acquire a land in the metaverse? And how is it done? We tell you all the details!
It is worth bearing in mind that actually the real estate sector in the Metaverse works relatively the same as in the physical world: you buy land that you can sell, build or even rent to others, and depending on the environment of these, they can be revalued or depreciated.
The difference is that these will be in virtual reality, but they include everything from virtual concert halls and shopping centers to houses and monuments. Then, How much does a land cost in three of the most popular metaverses?
Decentraland
A few weeks ago, the company Token.com, the parent company of Metaverse Group, a firm that operates Decentraland, announced that a property of “116 parcels in the heart of the Fashion Street district within Decentraland”Was sold in approximately $ 2.5 million dollars.
Each parcel purchased in the aforementioned transaction is equivalent to 52.5 square meters, so the 116 parcels are equivalent to 6,090 square meters of land. The acquisition was for 618,000 MANA, the token used in the Decentraland metaverse; which leaves us with that each plot of land has an approximate cost of 5,328 MANA, or $ 18 thousand US dollars approximately at the current price of the token ($ 3.39 US dollars). In this sense, it is the largest acquisition in Decentraland’s current history.
However, when exploring the Decentraland marketplace, we can find that The prices of the plots vary according to their characteristics: understand, whether or not it is close to the road or a square.
For example, a parcel that is relatively far from the square or the road, may have a cost of 8,999 MANA. While one that is much closer can cost up to 500,000 MANA.
Does it have potential? In theory yes, over time you will see if you have it in practice. However, it is true that different companies and even organizations such as the Barbados embassy have announced their plans to open a space in the Decentraland metaverse.
According to a DappRadar report, during the week of November 22-26, Decentraland generated $ 15.53 million in land sales. While, according to data from NonFungible.com, last week Decentraland traded US $ 6.6 million for 399 assets.
“Lands in the metaverse is the next big hit in the NFT space. With record sales figures and ever-rising prices for NFT, virtual worlds are the new top product in the crypto space.”Stated DappRadar.
If you want to know more details about the Decentraland metaverse, we invite you to review the following detailed guide.
The Sandbox
The Sandbox It has gained significant popularity as companies like Adidas, Atari, Binance, or even personalities like Snoop Dog have acquired land. In fact, according to both DappRadar and NonFungible.com, it’s the metaverse with the highest volume in recent weeks.
However, unlike Decentraland, in The Sandbox Marketplace no availability of land. This does not mean that land cannot be acquired directly since the lands of this metaverse are traded on OpenSea, one of the largest markets for NFTs.
Considering this, in OpenSea the lands range from 0.75 ETH to 3 to 4 ETH which are the most frequent offers for the best lands; that is, prices start at $ 3,000 US dollars per land. Nevertheless, In Opensea the purchase and sale works under an auction format, so the price may vary depending on the offers made by users and what is the minimum that merchants ask for.
According to a report from DappRadar, during the week of November 22 and 26, The Sandbox led the group with the highest number of merchants and sales, achieving the highest volume of operations with more than $ 86 million US dollars, and, during the past week, according to NonFungible.com, The Sandbox traded a volume of $ 70.5 million US dollars for 4,433 assets.
NFT land trading volume in virtual worlds for 7 days in Millions of US dollars. Source: DappRadar.
If you want to know more details about the metaverse of The Sandbox, we invite you to review the following detailed guide.
Axie Infinity
Axie Infinity It has become popular as a battle game that has conquered various countries butespecially the underdeveloped like Venezuela, so it may be surprising but, yes, Axie Infinity also has its own metaverse.
In fact, Axie Infinity’s official Twitter account reported that on November 24, a piece of land from its metaverse was sold for $ 2.4 million US dollars. The purchase was made in ETH, so it translates to 550 ETH.
The parcel is part of the “Genesis” lot and is described as extremely rare, thus this purchase set the record for being the most expensive sale Axie Infinity has observed to date.
Will its rarity justify its price? In general, all the lands of the metaverse vary depending on the benefits they offer as well as their degree of “rarity”, as is often the case in the NFT market.
In particular, Genesis grounds are considered extremely rare given that it only has 220 units out of the 90,601 spaces available in Lunacia, the name given to the land where the Axies live.
With this in mind, not all lands in Axie Infinity are priced that high. At marketplace From Axie Infinity we can find land starting at 3.75 ETH, or $ 15 thousand dollars at the time of writing, up to 10,700 ETH, or $ 44 million dollars. The latter is also about a Genesis land.
Sometimes the crypto market in general can become intimidating, especially when executing a purchase of some kind, so, in general, it is advisable to do a research on the official website of the project before executing an action.
In this sense, in addition to needing the amount of money necessary to buy a land, what else should be taken into account? Here are some details for each of the previously mentioned projects.
Buying a land at The Sandbox
At the time, The Sandbox made public sales of land that could be purchased directly with them, however, they are not currently available, so the solution is to go to an official secondary market like OpenSea in order to avoid scams, which abound.
In this way, to acquire a land in OpenSea you must register both in said platform and in The Sandbox. Land can be purchased in SAND and ETH, which will depend on the seller’s choice.
Likewise, the Sandbox team suggests using the same wallet on both platforms with the aim that, once you acquire the land in OpenSea, it immediately appears in your inventory in The Sandbox. In case of not using the same wallet, you will have to pay the fees in ETH to move the land from one wallet to another.
In case you want to obtain the step by step of this process, you can review the following tutorial of The Sandbox.
Buying a land in Decentraland
In the case of Decentraland, it is also necessary to have an account on the platform and a wallet associated with it.
Once you have this, you should go to the marketplace Decentraland and select “Parcels” under the “Land” category. Subsequently, you must choose the land you want to acquire according to your requirements and, once this is done, select it and you can see the price, who is the owner, its availability and the coordinates of the land. Next you must connect your Ethereum wallet, such as Metamask, to the marketplace and make the purchase.
It is very important that you must have additional ETH in your wallet to pay the network fees.
In the following link you can find the official page of Questions and answers by Decentraland.
Buying a land at Axie Infinity
Unlike the rest of the projects, to buy a land in Axie Infinity will be necessary specifically have a Ronin Wallet.
Once you have logged in to the Ronin Wallet, you must go to the Axie Infinity marketplace and select Land from the top menu. Later it is possible to filter the lands according to their rarity from Savannah (being the cheapest lands) to Genesis.
After selecting the land, you will proceed to pay with the ETH available in the Ronin wallet. As in the rest of the metaverse, there must be additional ETH in the wallet to pay the transaction fees.
According to research by Grayscale, The Metaverse has the potential to become a $ 1 billion annual revenue opportunity. However, the word “potential” is very important, given that it is still a market in full swing. Also, just because the Metaverse has potential does not mean that all projects in this market will be successful.
In fact, Grayscale himself acknowledges that the metaverse is still “in its infancy.”
Despite this, the numbers indicate that more and more users are investing in this new market. Nothing else for the past week was performed $ 300 million in NFT sales, of which nearly a quarter came from the sale of land from The Sandbox.
Do you think the Metaverse will be the new branch of the real estate business? Or, on the contrary, will it be a complete failure?
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