The Metaverse has proved to be a major hot spot for the emerging digital assets industry. However, over the span of time, Virtual Real Estate prices have surpassed the price growth of Real Estate prices by a big margin.
Virtual land prices growth beats physical real estate
Many industry biggies, artists and brands have already joined the Metaverse revolution. JP Morgan became the first bank to jump into the virtual world by signing a year long property lease. It also reported that metanomics can offer opportunities of $1 trillion in annual revenue.
According to a report by Chainalysis, Virtual real estate prices have spiked by 879% from September 2019 through March 2022. On the other hand, the physical real estate prices have jumped by 39%. As per the tracking indexes, the growth of virtual real estate prices has managed to outnumber physical properties by 532%.
It mentions that Blockchain-based virtual real estate (VRE) offers many different products and services to users. Meanwhile, the feature of access to private events and NFT-gated communities has proved to be the big driver of its demand.
Gas fees playing important role in Metaverse
The major difference in the land pricing between different Metaverses has been the blockchain. Chainalysis highlights that land on Ethereum (ETH) and Solana (SOL) have a huge price difference. Where ETH has a gas fee that stands anywhere from $5 to $50, SOL’s fees averages at $0.00025.
Meanwhile, Metaverse based on Ethereum like Otherdeeds and Decentraland recently integrated with Polygon to lower the gas fees. However, the gap between the high fees can soon be explained by the popularity and monetization plan of the providers.
The report mentions that Bored Ape Yacht Club (BAYC) has tied up NFTs with entertainment and other things. It has helped them to bag $310 million in metaverse land sales. BAYC sold assets that act as deeds to 55,000 digital plots in their metaverse. It was reported that a plot of land cost around $5,800 in their native token, ApeCoin at that time.