Metaverse real estate sales cross $500 million

• MetaMetrics Solutions reported that sales in January topped $85 million

• Sandbox, Decentraland, Cryptovoxels, and Somnium are the top players in the metaverse real estate market 

Metaverse real estate sales crossed $500 million in 2021 and could rise to $1 billion this year.

MetaMetrics Solutions reported that real estate sales on the four major metaverse platforms reached $501 million in 2021. Sales in January topped $85 million, the metaverse data provider said.

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CNBC quoted a report from BrandEssence Market Research that found that the metaverse real estate market is expected to grow at a compound annual rate of 31% a year from 2022 to 2028.

Metaverse mumbo-jumbo

The metaverse is a digital reality that combines aspects of social media, online gaming, augmented reality (AR), virtual reality (VR), and cryptocurrencies to allow users to interact virtually.

Virtual real estate in the metaverse is made up of designated pieces of code in an interactive web experience. Pieces of code are partitioned to create individual “plots” within certain metaverse platforms and are made available to purchase as NFTs on the blockchain.

Sandbox, Decentraland, Cryptovoxels, and Somnium are the top players in this market and real estate sales on these platforms reached $501 million in 2021, according to MetaMetrics Solutions.

Sandbox dominates the market, with 62% of the available land on the four platforms and three-quarters of all land sales in 2022, reported CNBC. Sandbox has 166,464 parcels, every 96 meters by 96 meters, and each sold for the Ether equivalent of $12,700 in December.

Decentraland has 90,600 parcels, which are 16 meters by 16 meters, and sold for the Ether equivalent of $14,440 apiece.

Despite the growing sales, older investors still argue that metaverse sales are a part of a huge Ponzi scheme to a piece of land that isn’t real. 

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(With inputs from CNBC)

Picture Credits: HBR