Land in metaverse and NFT games have become incredibly popular recently. People are spending hundreds of thousands of dollars to buy virtual real estate. Metaverse real estate sales topped $500 million in the previous year and are projected to double this year. But, you might be wondering, what are the purposes of buying land in the metaverse?
- You can use the piece of land to create a business you can operate within the metaverse you are currently using. Then, you can start charging for whatever service you are putting out there on that land. That in itself can become a source of income.
- You could host events or parties where you can gather a group of people within the metaverse to come into your place or plot of land to have fun. You can create exclusive events and charge people to attend.
- You can host unique games and experiences that require play-to-earn access. So the land itself is the basis that could be used to create so many other different things that can give you benefit within that metaverse.
- You can build a home to live in within the virtual world.
What is metaverse land? What is virtual real estate?
A virtual land is represented as an NFT on the Ethereum blockchain, which gives you the right to a piece of digital land in a specific metaverse space. The NFT you buy when you buy virtual land contains the coordinates on the map where your land is located in that metaverse.
These NFTs that act as land parcels inside these games provide the users with complete ownership of the land plot inside these virtual spaces. Many more games will be released in the near future that will offer land NFTs. The land NFT within these metaverses is limited. For example, the sandbox has around 160,000 lands. So that in itself creates a limited supply.
So, why buy land in the metaverse? To buy and hold. Like crypto investment, If you feel the land has the potential to rise in value. Then, you can flip the land when the price goes up and get a profit. To build places. The Metaverse space does not limit your imagination or creativity. There are different designs of structures available in the metaverse. You can build a gallery to display your NFTs, a home, or even a business outlet on the platform. To earn passive income. It is possible to rent your land to other users, just like in real life. Events can be hosted and experiences made on the land in the virtual world. The renter pays you for the land use.
Factors That Determine the Value of Land in Metaverse
- Location: The location of the land on the map affects its price. If the land is located in the heart of the city where there is much traffic, it will be more expensive than a plot of land situated on the city’s outskirts. It is just like in the real world.
- Size: If you are purchasing a small piece of land, it will cost less than a large piece of land. *The success and popularity of the platform. This is the most important factor. A well-known platform may be said to have already built a brand, so many people find it trustworthy to purchase land.
Types of Metaverse
Right now, metaverse comes in 2 forms: the NFT game metaverse and user-experience metaverse.
A blockchain-based virtual environment that allows users to create, build, purchase, and sell digital goods. The sandbox is an NFT gaming experience. Players can monetize the land for game players, or the land can be rented out for others to create experiences. If you hold the token long-term, you might get a profit if it increases in value. You can stake the sandbox token for 25% APR; however, you cannot rent out the land at the time of staking.
Furthermore, the Sandbox encourages decentralized governance by introducing the SAND token, allowing users to voice their thoughts and ideas regarding the project’s progress. At the time of writing, SAND is valued at $3.5. With a live market cap of $3,921,771,248 USD, its current CoinMarketCap ranking is #39. There is 1,157,908,752 SAND in circulation, with a maximum supply of 3,000,000,000 SAND coins.
The virtual reality platform—powered by the Ethereum blockchain is the closest idea of what a metaverse will look like in the future. In Decentraland, people interact using digital avatars and access different experiences within the game. All of the activities and structures built in Decentraland are user-generated pieces of content, meaning developers and builders within Decentraland build out these experiences. There are 90,000 plots of land on the platform, with the cheapest being 3,685 MANA.
MANA, the native token of Decentraland, is worth $2.7. It has market cap of $4,876,548,772 USD, the current CoinMarketCap ranking is #33. The circulating supply is 1,840,799,568 MANA coins, and there is no maximum supply.
Where to Buy Land in the Metaverse?
Are you thinking of buying property in the metaverse? You can purchase land in the marketplace on the metaverse platform. Decantraland and Sandbox, for example, sell virtual lands using MANA and SAND tokens, respectively. Depending on which platform you select, the size and amount of land available may vary. On Decantraland, for example, a piece of LAND measures 16x16.
These coins can be purchased, exchanged, staked, and stored on Guarda. As a non-custodial wallet, Guarda allows you to store your coins on the platform while you have full control over your private keys.
How to Buy Land in the Metaverse
- On the Metaverse platform of your choice, go to the property marketplace. There, you will see you can see the metaverse property for sale.
- Select the ‘land’ tab, and you will see the lands available for sale and their location within the metaverse space. You can choose to view from cheapest to expensive and vice versa.
- Click on it, and you will get the information you need to know about the plot of land, including its name, price, and even the owner.
- Create a digital wallet that works with your chosen Metaverse real estate. Land in Decentraland, for example, can only be acquired with the MANA token, and you’ll need a wallet that can handle the transaction.
- Connect your digital wallet to your Metaverse account and ensure it has the crypto you need.
- To transmit the crypto amount in exchange for the real estate NFT, click the buy or purchase button.
After the purchase, you can start using your land to profit or create an experience within the metaverse.
To buy land in metaverse, make sure you have done enough research, and the funds you are putting in are what you can afford. This category of NFTs, like many others, is still high risk. You cannot live on the land; it is just for profit. Just because it is land inside the metaverse does not guarantee its success.
Always purchase your NFT land from the marketplace on the platform or the secondary market through a reputable NFT exchange. Make sure you understand the land’s project and the financial risk.