Metaverses offer new investment opportunities. In which metaverse is it better to buy a virtual plot? What are the floor prices? What are the conditions of purchase and construction? Let’s compare the real estate of the most famous metaverses: The Sandbox, Decentraland, Somnium Space and Cryptovoxels.
Metaverses offer new investment opportunities
Metaverses , immersive and decentralized virtual worlds based on blockchain and non-fungible tokens (NFTs), are attracting growing excitement among real estate investors , tech companies and big brands.
Since 2021, there has been a race to acquire land (“lands”). These lands are non-fungible tokens, i.e. title deeds registered on the blockchain, where you can build anything you want, such as virtual stores, concert halls and other immersive experiences.
Metaverses attract as much as they intrigue investors
Like the New World of the Americas in the time of Christopher Columbus, the lands of the metaverses are uncharted , unknown and unpredictable territories. Investors in the metaverse take risks, but are attracted by the potential for capital appreciation and return on investment in these lands.
Indeed, the metaverse economy promises significant gains, especially in terms of sales of virtual goods and services. So, according to a report by Grayscale , one of the largest asset managers in the cryptocurrency world, the metaverse could represent a $1 trillion annual market in the coming years.
To access this market, you must have your doorstep, and therefore buy or rent land on the metaverses. We quickly understand the interest of investing in these virtual grounds .
But which metaverse to choose? There are many metaverses, but not all of them offer to buy land yet. We will focus here on the 4 pioneer metaverses which are Decentraland , The Sandbox , Somnium Space and Cryptovoxels . These have in common to offer the purchase and resale of land on the blockchain, in the form of non-fungible tokens, to offer a certain freedom of construction to the owners and to be accessible free of charge.
Decentraland (MANA)
Decentraland is one of the oldest and best known metaverses. It is a metaverse based on the Ethereum blockchain. Created in 2015 by Argentinian engineers Estaban Ordano and Ari Meilich, the project raised $26 million in an ICO in 2017.
MANA , which is worth almost $3 at the time of writing this article, is the native cryptocurrency of the game . It is necessary to have MANA in your wallet to acquire any type of virtual goods in the metaverse of Decentraland, whether clothing or land.
Land prices on Decentraland
In February 2022, the cheapest land is selling for nearly 4.5 ETH , the equivalent of $12,500 . For the past few months, the average price of a parcel of Decentraland’s world has continued to climb. A Decentraland lot, for example, sold in 2021 for nearly $2.5 million .
Land configuration
There are 90,601 lots and each of these lots is 256 m² .
Building rules
The height of the structures depends on the size of the land. Thus, for a plot, the maximum height will be 20 meters high. It will be 31.7 meters high for 2 lots and 69 meters high for 10 lots. This climbs up to 143 meters high for an “estate” (set of land) of 143 lots ( see table on the Decentraland site ). Thus an estate allows the construction of a larger exhibition area .
Music festival in the Decentraland metaverse in October 2021
Points forts de Decentraland
Decentraland is a truly decentralized metaverse , owned by its users. The platform is intuitive and offers many tutorials.
On the other hand, it is one of the most attractive metaverses . Important investment companies have bet on this metaverse in 2021, such as Tokens, with almost $3 million invested in 116 plots, to build a Fashion District there, and Republic Realm, whose investment amounts to $4.3 million.
Decentraland can also boast of the presence of major brands and influencers, with for example the virtual replica of the famous auction house Sotheby’s , the artistic district Voltaire which brings together the major NFT platforms like SuperRare and KnownOrigin. Its 2021 “ Metaverse Festival ” pioneered the field and was a success, bringing together 80 artists (including Deadmau5) and 50,000 visitors .
Another advantage: the great diversity of activities offered on Decentraland . There are museums, casinos, shops, music festivals, a university and soon even a fashion show.
Where to buy Decentraland land?
Land is for sale on Decentraland’s official “marketplace”, as well as on NFT sales platforms such as OpenSea .
The Sandbox (SAND)
The Sandbox metaverse is also one of the most popular metaverses. Developed by two French co-founders, Arthur Madrid and Sébastien Borget in 2011, it was acquired by the Animoca Brands group in 2018. It is strong with a fundraising of 93 million dollars in 2021 . For its part, the Animoca brands group has also just raised 359 million dollars and is valued at 5 billion dollars.
The Sandbox has the advantage of having concluded numerous partnerships with more than 165 major brands, such as Atari, Adidas, Warner Music Group, Binance or the Smurfs.
All purchases within the virtual world of The Sandbox are made with a token, here the SAND. It is also possible to buy land in Ether (ETH).
Carte de The Sandbox
Land prices
In February 2022, it is necessary to budget at least 2,700 SAND or 3.5 Ethers (ETH), or nearly 10,000 dollars for a plot of 9216 m², at the time of writing this article. For the best-placed plots, prices can amount to several million euros.
Land configuration
The Sandbox metaverse is made up of 166,464 lands. Each plot measures 9,216 m². There are two categories of courts: “regular” and “premium”.
Points forts de The Sandbox
The Sandbox offers three components: an “ NFT Builder ” (NFT production tool for creators), a “ Marketplace ” (store), and a “ Game Maker ” (game development tool).
Another advantage: the map of the virtual world is quite well built, and allows easy navigation and quick visualization of the plots. It also allows owners to place a logo on their plot.
Also note that owning a ” Land ” allows you to have a voice in the governance of the metaverse, and to influence future decisions.
Finally, The Sandbox belongs to Animoca Brands, which is a private company and is therefore professionally managed, with a vision and a structured development plan.
Where and how to buy The Sandbox land?
The land is for sale on The Sandbox Marketplace during public sales (see the calendar of future sales ), the last of which took place in January 2022. These are announced in advance to the community, via the platform social networks. Land can also be found on the secondary market on NFT platforms such as OpenSea and Rarible .
Dream Space
Founded by Artur Sychov and developed by a Czech team in 2017, Somnium Space is one of the most recent metaverses , but also one of the most successful. It is built on the Ethereum blockchain.
It is possible to access it via a PC, a smartphone or with a virtual reality (VR) headset for an immersive experience.
Best known for its musical events, Somnium Space has developed numerous partnerships, in particular with the cryptocurrency exchange platforms Gemini and FTX, or the NFT sales platform Nifty Gateways.
The Somnium Space metaverse uses its own cryptocurrency, the Somnium Cube (SOM).
Carte’s Dream Space
Land prices on Somnium Space
At the beginning of February 2022, the minimum price for land is around 3.6 ETH , or almost $10,000 . It takes 4 ETH for an XL size lot.
Land configuration
On Somnium Space, 5,026 lands are available for sale, according to the platform guide . The sizes vary from 200 to 1500 m² . The plots of Somnium Place are organized around a river, and not in a grid like for Decentraland or The Sandbox.
The size of the courts varies and these are therefore available in several sizes: small (S), medium (M) and large (XL). Their altitude is different, with plots therefore overlooking the others.
Building rules
Size S lots are 200 m² and can be built up to 10 meters high or deep. Medium lots are 600m² and buildable up to 25m high. Finally, the XL pitches are 1500 m² . They can be built up to 50 meters high. It is possible to buy rights to build on greater heights.
Points forts de Somnium Space
Somnium Space is really sized for use in virtual reality. “Photorealistic” graphics may appeal more to an adult audience. The platform offers the use of holograms for a realistic representation of avatars. It is also developing a range of virtual reality (VR) headsets. Finally, it offers a very comprehensive user guide and a veritable log of events, the Somnium Times .
Where to buy Somnium Space land?
Land is available on NFT platforms such as OpenSea, and during sales announced on Somnium Space’s social networks.
Cryptovoxels
Cryptovoxels is a platform founded by Ben Nolan in 2018 and based in New Zealand. It is built on the Ethereum blockchain .
This metaverse is entirely user-built , but remains the ultimate property of a private company. It is mainly focused around digital art and offers many museums. The graphics are pixelated like in Minecraft type video games .
Transactions on Cryptovoxels are made exclusively in Ethers (ETH).
Land prices on Cryptovoxels
Land can be found starting at 1.5 Ether (ETH), or around $4,200 .
Land configuration
It should be noted that the amount of land available increases as the metaverse develops . Originally, the metaverse had 3,026 lots. There were about 6,500 in existence as of December 2021, according to metaverse analytics site Meta Metriks .
The sizes of the plots are variable , and their buildable height depends on their size. For example, a plot of 9 meters by 19 meters allows a building height of 11 meters.
Points forts de Cryptovoxels
Cryptovoxels offers a very high ease of use and construction . All users are free to create their accessories (” Wearables “), which is not the case on Decentraland , which submits the creations to the approval of a ” Committee ” .
It is an ideal platform for artists, due to the concentration of galleries it offers and the advanced functionalities allowing integration of NFT sales platforms.
Where to buy Cryptovoxels land?
On the Cryptovoxels “ Marketplace ” , during weekly sales which are announced on the Cryptovoxels Twitter account , or on the secondary market, on NFT sales platforms.
Overview of the virtual world of Cryptovoxels
Conclusion on investing in metaverses
This comparison can make it possible to choose its field according to the target audience and its budget. Of course, you have to keep in mind that there are many other metaverses , and many more are in the works, including by Epic Games, Niantic , Microsoft , Meta, and many others.
Let’s also remember that investing in the metaverses is a bit of an appointment in unknown lands . We don’t really know what these virtual universes will become, nor who the neighboring peoples will be.
Such an investment therefore remains highly speculative and investors can only be encouraged to exercise caution and diversify their assets .
