With the world economy continuing on a rocky trajectory, even former cryptocurrency bulls are starting to doubt when the cryptocurrency winter will end and sell, or at least close their eyes and hold on in the hope that a thaw will come. The same attitude has plagued the real estate of non-fungible tokens (NFTs) in the metaverse.
Unlike coins and tokens, metaverse real estate (sold as NFTs) continues to provide an immediate advantage for land-based investors, making it an attractive asset class for cautious crypto during this snowy season. If you’ve been waiting to play a game in the metaverse, now is a great time to get involved. Here because.
1. Metaverse properties are significantly discounted
Even as property prices in the metaverse continue to fall, they still hold significant value as a rentable asset. What it really means is that what you buy now and use for your business or rent it to other businesses will likely turn out to be a bargain when the cryptocurrency spring begins.
For example, as of August 2022, the average minimum price for a lot in Decentral (MANA -0.55%) was $ 2,951.90. It’s down from a low of $ 3,064.07 in June and even from an average selling price of $ 6,359.10 in October 2021.
2. But despite falling land prices, virtual land rents are still in demand
Despite falling land prices, property construction continues at a steady pace, with companies like Pepperidge Farm, Snapple, and Jose Cuervo opening metaverse-based projects this month.
It is a little more difficult to know what they are renting these properties for as most landowners will not discuss the details. But in an interview with FastCompany, Sam Huber, a virtual property developer and landowner in the metaverse, explained that his company, LandVault (formerly Admix), leases developed properties for up to $ 60,000 a month, at a profit of up to $ 60,000 per month. to 70%.
3. There is still interest in the metaverse
While prices have largely been dragged down by falling cryptocurrencies, there is a lot of interest in the metaverse. A significant part of the slowdown in trade appears to be due to the lack of properties available for sale, with both Decentraland and The sandbox (SAND 0.10%) having only a small inventory available. The Sandbox, as of September 19, had only 3,408 packages, or 2.10% of its total properties, for sale through its market. Decentraland only had 652 lots and properties available on its market, which is 0.67% of its total properties.
Perhaps what’s even more significant is that The Bored Ape Yacht Club’s brand new metaverse platform, Otherside, which opened land sales on May 1, after the crypto cold had already begun, continues to see a lot of interest. As of August 2022, the average number of daily sales on this platform was 119.87, despite increasingly limited inventory. The average daily sales volume in the same month was $ 746,503.19.
It might be cold in cryptolandia, but the metaverse is still interesting
For many, the metaverse still feels like some kind of fevered dream filled with people who are driving towards a future that no one else is ready for, but that’s far from the feeling of those on the pitch. Brands continue to show up and claim their stakes in the metaverse, and even influential banks are talking about where the future will take us all.
In July 2022, Southeast Asia’s largest bank, DBS, released a report stating that the metaverse will represent a $ 3 trillion to $ 11 trillion opportunity worldwide by 2030. The metaverse, according to his estimates, would represent 10% to 40% of the digital economy in general by that time.
As the worlds that make up the metaverse continue to mature, the world economy stabilizes slightly, and the crypto winter recedes, today’s metaverse real estate skeptics may well see that they have missed an easy investment opportunity.
Kristi Waterworth has positions in ApeCoin, Campbell Soup, Decentraland, Ethereum and The Sandbox. The Motley Fool has stances and recommends Ethereum. The Motley Fool has a disclosure policy.