By
Mayowa Adebajo
April 10th, 2024
2022 has just started, but in January alone, metaverse real estate sales have already reached $85 million. And it will not be a surprise if, by the end of the year, the sum will top $1 billion.
As the metaverse is rapidly becoming mainstream due to a common belief that it will change the internet, it dominates numerous headlines and turns out to be a subject of various studies. One of them has been recently conducted by MetaMetric Solutions, an educational measurement and research organization and provider of metaverse data and insights. According to the firm, metaverse real estate sales on the four major metaverse platforms totaled $501 million in 2021. And this year, this sum could double, considering the pace at which metaverse is developing.
Metaverse Real Estate Sales in 2021
2022 has just started, but in January alone, metaverse real estate sales have already reached $85 million. And it will not be a surprise if, by the end of the year, the sum will top $1 billion. As BrandEssence Market Research has predicted, the metaverse real estate market is expected to grow at a compound annual rate of 31% per year from 2022 to 2028.
Janine Yorio, CEO of metaverse advisory firm Republic Realm, commented:
“There are big risks, but potentially big rewards.”
Notably, the metaverse boom started in October 2021 after Facebook rebranded and became Meta Platforms Inc (NYSE: FB). The announcement made metaverse real estate sales surge nearly ninefold, to $133 million.
Key Metaverse Players
There are four major platforms that dominate the metaverse industry. Let us have a look at them.
The largest metaverse real estate platform is Sandbox (SAND). Sandbox is building a unique virtual world where players can build, own, and monetize their gaming experiences using SAND, the main utility token of the platform. The platform dominates the metaverse market, with 62% of the available land on the four platforms and three-quarters of all land sales in 2022.
Sandbox is followed by Decentraland (MANA), a decentralized virtual reality platform powered by Ethereum (ETH). The other major metaverse platforms are Cryptovoxels and Somnium. In total, there are 268,645 parcels on the four platforms, with varying sizes. 166,464 parcels belong to Sandbox, they are 96 meters by 96 meters (106 yards by 106 yards). each sold for the ether equivalent of $12,700 in December. Another 90,600 parcels were owned by Decentraland that sold them for the Ethereum equivalent of $14,440 apiece.
While some believe that metaverse is extremely appealing, others see it as a ponzi scheme.
For example, Edward Castronova, professor of media at Indiana University, stated:
“Metaverse land sales are generally a pyramid scheme and have been for more than 20 years. The Metaverse is El Dorado for internet startups. They chase it into the jungle and die.”
Nevertheless, the concept is gaining traction, with many celebrities jumping into it. Prime examples are Paris Hilton’s virtual island built within Roblox, dubbed Paris World, as well as Snoop Dogg’s “Snoopverse,” a platform for virtual concerts, art and car exhibits, pool parties, shopping, and a digital replica of his massive California mansion.