3 Reasons to Buy Metaverse Real Estate Before the Crypto Winter Ends


As the global economy continues to find itself on a rocky road, even former crypto bulls are beginning to doubt when the crypto winter will end and are selling — or at least closing their eyes and holding on in the hope that a thaw is coming. The same attitude has beset real estate in the metaverse with non-fungible tokens (NFT).

Unlike coins and tokens, Metaverse properties (sold as NFTs) continue to offer immediate benefit to land investors, making them an attractive asset class for otherwise cautious cryptos this snowy season. If you’ve been waiting to make a Metaverse game, now is a good time to get involved. Here’s why.

1. Metaverse properties are heavily discounted

Even as Metaverse real estate prices continue to fall, they still have significant value as rentable assets. What this really means is that what you buy now and either use for your own business or rent to other businesses will likely turn out to be bargains when the crypto spring hits.

READ:  Prestigious Hong Kong flats stand empty as property market slumps

For example, as of August 2022, the average reserve price for a lot in decentralized (MANA -0.50%) was $2,951.90. That’s less than a floor of $3,064.07 in June and even less than an average selling price of $6,359.10 in October 2021.

2. But despite falling land prices, virtual land rentals are still in demand

Despite the fall in land prices, real estate construction continues at a steady pace, with companies like Pepperidge Farm, Snapple, and Jose Cuervo opening metaverse-based projects this month.

Knowing what these properties are being rented out for is a little more difficult as most landowners will not go into detail. But in an interview with FastCompany, Sam Huber, a virtual real estate developer and landowner on the Metaverse, explained that his company LandVault (formerly Admix) rents developed properties for over $60,000 a month at up to 70% profits.

3. There’s still interest throughout the Metaverse

Despite prices being largely dragged down by declining cryptocoins, there is a lot of interest in the Metaverse. A significant part of the slowdown in trade appears to be due to a lack of properties for sale, at both Decentraland and Decentraland The sandbox (SAND 0.56%) only have a small inventory. The sandbox only had 3,408 lots, or 2.10% of its total properties, for sale through its marketplace as of September 19. Decentraland only had 652 lots and lots available on its own marketplace, or 0.67% of its total properties.

READ:  A positive change coming for the Hungarian real estate market?

Perhaps more tellingly, the newest sweetheart metaverse platform, Otherside by The Bored Ape Yacht Club, which opened land sales on May 1 after the crypto cold had already set in, continues to garner keen interest. In August 2022, the average number of daily sales on this platform was 119.87, despite increasingly limited stocks. The average daily sales volume for the same month was $746,503.19.

It may be chilly in Kryptoland, but the Metaverse is still cool

To many, the Metaverse still seems like some kind of frantic fever dream full of people driving toward a future no one else is ready for, but that’s a far cry from the mood of local people. Brands continue to emerge and claim their Metaverse shares, and even influential banks are talking about where the future is taking us all.

READ:  Tulsa's Coolest Office Spaces list for 2022 revealed by local real estate firm

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 globally by 2030. The Metaverse, he estimates, would make up 10% to 40% of the entire digital economy at that point.

As the worlds that make up the metaverse continue to mature, the global economy settles down a bit, and the crypto winter recedes, today’s real estate skeptics may realize they’ve missed an easy investment opportunity.

Kristi Waterworth has positions in ApeCoin, Campbell Soup, Decentraland, Ethereum and The Sandbox. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.





Source link