2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

In 2021, “Metaverse” will become a buzzword in many industries. Similarly, in the western world on the other side of the ocean, the “metaverse” is also developing in full swing. So what has been the development of the blockchain-based metaverse ecology in the past year? The leading Metaverse development company Republic Realm recently released the “Republic Realm 2021 Metaverse Virtual Real Estate Report”, which summarizes the Metaverse ecology in the past year.The following is the original report.

2021 is a groundbreaking year for the entire metaverse ecosystem. As the concept of the Metaverse gains more mainstream attention, the prices of land and assets in the Metaverse are gradually approaching real-world levels. Celebrity arrivals, collaborations with well-known brands, soaring valuations of various Metaverse tokens, and growth in P2E gaminghave all contributed to Metaverse’s leap forward in the last year.

This report reviews the development of the Metaverse virtual real estate business ecosystem in 2021 and discusses key market trends associated with it. These trends include: the entry of mainstream traditional players; the commercial application of Metaverse technology (including gaming and trading); and the impact of non-fungible tokens NFTson the overall metaverse.

This report consists of three parts:

1. Definition and development status of blockchain metaverse and virtual real estate.

2. Comprehensive data analysis and investment logic introduction for the four Metaverse projects.

3. Observation and prediction of the current new trends in the metaverse industry.

Key findings:

1. In 2021, the total sales of digital real estate and the prices of other Metaverse assets have achieved substantial increases.

2.    The Sandbox is pulling away from the rest of the metaverse on several key metrics.

3. Games and the Metaverse are inextricably linked. Both tracks benefit from the liquidity provided by digital land sales.

What is Metaverse Real Estate?

introduce

Virtual worlds are not a new concept. Second Life and Eve Online launched in 2003 are virtual worlds specially designed for adults. These games successfully built complex internal economies and attracted millions of users at their peak. These two virtual world games became popular when people were still accustomed to real-life interactions. But the popularity of both games has waned as new crypto-based upstarts continue to emerge.

In 2004, Ailin Graef (aka Anshe Chung) started accumulating virtual real estate in Second Life. She started out on less than $10 and became the first person to achieve a net worth of more than $1 million through business transactions conducted entirely in the virtual world. Everyone’s interest in virtual real estate and NFT speculation today can be traced back to the myths surrounding Anshe Chung.

Since then, human-to-human interactions and social interactions have become increasingly virtual. Most people have shifted their social and work relationships to their phones or laptops. If ever there was a tipping point where people would interact more on a computer than face-to-face, it is now. The sudden global outbreak of COVID-19 contributed to the early arrival of this tipping point. These new habits may lead to permanent behavioral and cultural shifts that irreversibly alter our normalcy.

Blockchain Metaverse

The “metaverse” refers to the vast virtual world created by companies such as Somnium Space and Star Atlas. Metaverse properties refer to the saleable land assets of these worlds. They are built on blockchains (the underlying standard for all metaverses we will cover in this report), and the “land” in the metaverse can often be bought and sold in the form of non-fungible tokens (NFTs).

There are enough people who believe this virtual real estate is scarce and valuable that they spend a lot of money on it.For this reason, ownership of virtual property has become a digital status symbol for early investors.

In addition to status, ownership also represents something bigger – a contribution to the ecology of the Metaverse community. The development of Metaverse real estate has a huge impact on the way players interact within it. They become spaces for people to engage, explore, build and socialize. Here, people mimic real-life interactions while increasing the value of the land.

Investing in virtual real estate is made through the purchase and exchange of non-fungible tokens (NFTs), a special type of cryptographic token that represents something unique. Thus, tokens can not be interchanged with the NFT, which is equally interchangeable bit encryption, such as currency, in essence currency contrast. Every NFT is different; it is indivisible and not interchangeable.

While not as liquid as some cryptocurrencies traded on major exchanges , virtual real estate NFTs can be traded on the NFT marketplace in a more streamlined and transparent manner than real-world real estate transactions.

Ownership of virtual real estate NFTs is recorded on a decentralized blockchain, rather than as cumbersome as traditional deeds or title transfers. The landholder is the permanent owner of that digital asset, even if the game’s servers go down, that won’t change that.

Potential buyers of land in the virtual world must be familiar with these new rules. In virtual worlds, it is important to bring humanity and life into the digital space, bringing players together and then encouraging them to immerse and interact.(These settlements are often referred to as “content clusters.”) In the virtual world, the originality and sense of design of a property are even more important than location and budget.

Although the number of daily active users in the metaverse is still relatively small, when users start to enter the metaverse in large numbers, selling real-world products in the virtual world will become a very cost-effective marketing strategy. In fact, this kind of marketing could accelerate the mass adoption of the metaverse as consumers become more willing to buy virtual products from their favorite brands.

The fusion of virtual world environments with real world spending is nothing new. Players have been buying skins, gear, and health in video games for years. All these transactions in the future will take place in the Metaverse Marketplace.

Imagine the possibilities for a company like Nike. Instead of having a store on every high street in America, Nike can build an amazing virtual retail experience in a metaverse that sells to anyone, anytime, anywhere. At some point every company will realize that it needs to have a virtual presence in a metaverse like Decentraland , just as they all know it has to have a website on the internet.

The result is self-fulfilling. As content in the metaverse becomes more visible, more people will show up, attracting more corporate sponsorships.

More importantly, participants in this virtual economy will realize this is an exciting time. The possibility of escaping into a new world and reinventing yourself will always be attractive, even for the most stubborn among us. Add in colorful graphics, art, music, and new friends from all over the world, and it’s easy to see why the Metaverse is such a hot topic.

First movers in virtual real estate have the ability to enter at prices that are still relatively affordable compared to real-world markets. Like the first movers in fast-growing places in the real world (Village, Florida; Austin, Texas; Las Vegas), those who invest early and hold for the long term will ultimately benefit.

“Meta Effect”

In October 2021, Facebook announced that it would change its name to “Meta”. The announcement immediately raised public awareness of the Metaverse. Overnight, the metaverse became a buzzword. News outlets around the world started asking “what is the metaverse?” Facebook’s message to the world was clear: the metaverse is the future of the internet .

Facebook’s announcement not only increased the number of Metaverse land sales, but also caused the token prices of various blockchain metaverse platforms to surge.

For example, SAND, which was trading at $0.99 prior to the announcement, is trading at a 2021 high of $8.40, a gain of 748%. And Decentraland’s MANA rose from $0.76 to $5.79, an increase of 662%. These price increases have resulted in a fully diluted market capitalization of $18 billion for SAND and $7 billion for MANA.

Gaming tokens have also seen a surge during the same period. Star Atlas’ ATLAS token rose 133% from $0.09 to $0.21, while Gala Games’ GALA token rose 953% from $0.08 to $0.82.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Figure: $PLAY Index, consisting of SAND, AXS, MANA, ILV, ENJ, GALA, YGG and AUDIO

Investors have also turned to Metaverse Land as the price of Metaverse tokens has risen. Between Meta’s announcement and the writing of this article, The Sandbox’s average land price rose 349%, from $2,702 to $12,136, while Decentraland’s virtual land price rose 26%, from $10,755 to $13,602.

In-game NFT assets have also benefited from this surge in interest in the metaverse. Republic Realm’s Fantasy Islands, an island development in The Sandbox, sold for 5 ETH each (about $15,000 at the time) in September . By the fourth quarter of 2021, the islands are trading for up to 50 ETH ($195,152), equivalent to the price of a house that can be purchased in the real world.

Additionally, a digital yacht from the same series called The Metaflower Super Mega Yacht was sold for 149 ETH ($650,000). Meanwhile, homes in the Wilder World metaverse are selling for as much as $160,000. In the Solana- based space game Star Atlas, all assets are tokenized, and some buyers have paid as much as $3 million for virtual spaceships.

The fusion of physical and digital life

In the Metaverse, each user is represented by an animated “Avatar”. Users can dress and design their images according to their preferred aesthetic, just like real-world fashion. Clothing and accessories vary in price, and some have more social value than others. Since people’s physical identities are inseparable from their digital identities, the value of NFT accessories is becoming increasingly important throughout the Metaverse ecosystem.

Popular NFT avatar projects such as Meebits, CloneX and Bored Ape Yacht Club further underscore the convergence of NFTs, metaverse properties and digital wearables. While these collections of NFTs now exist as PFPs or “avatar pictures,” each of their roadmaps point to Metaverse utilities. These Avatars could be used as 3D characters in Metaverse games, VR and Metaverse social interactions in the future.

Luxury brands have also started migrating to the digital realm in the form of digital wearables. As a veteran sports brand, Adidas recently launched its own avatar program, partnering with the Bored Ape Yacht club to create a series of NFT wearables. Industry-leading virtual footwear creator RTFKT (recently acquired by Nike) has sold NFT metaverse sneakers for up to $10,000. Digital fashion houses such as Tribute Brand, DRESSX and The Fabricant have also launched successful digital wearable collections. In May 2021, a virtual Gucci handbag sold for 350,000 Robux ($4,115), which is $700 more than the physical bag ($3,400).

In the face of these high-priced NFTs, it is important to pay attention to the distinction between decentralized and centralized assets. In a centralized metaverse, such as Fortnite, only game developer Epic Games can make a profit from the sale—even over $50 million from a set of Fortnite Skins. However, in a blockchain-based decentralized metaverse, profits and sales royalties are typically distributed among product creators and users, fostering a collaborative, shared environment consistent with the decentralized spirit of crypto.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Image: Gucci’s Luxury handbag, physical (left) and virtual (right)

Celebrities Enter Metaverse Properties

While Facebook’s rebranding to Meta was undoubtedly a major contributor to the rise in popularity of the Metaverse, there were other important milestones that brought the Metaverse into the mainstream. Social media and news headlines amplified the campaign as some celebrities began to enter the Metaverse to expand their brands. For example, a parcel of land next to Snoop Dogg’s home in The Sandbox sold for $450,000 (“good deal” Snoop Dogg tweeted).

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Pictured: Snoop Dogg’s Twitter feed

Coverage of the Metaverse has expanded from crypto-world news outlets to prominent international news outlets such as Reuters, CNBC, The New York Times, Bloomberg, CNN, The Wall Street Journal, and more. In November 2021, The Wall Street Journal reported that Republic Realm acquired The Sandbox land from gaming giant Atari for $4.3 million, the most expensive virtual land purchase in history.

Four Metaverses

The four current leading metaverses: Decentraland, The Sandbox, Cryptovoxels, and Somnium Space share many key characteristics, including:

  • Significant user interest and game asset sales figures have been seen.
  • Free to use.
  • Own a limited amount of tokenized (NFT) land.
  • Land can be bought and sold in primary and secondary sales on marketplaces such as OpenSea and Rarible.
  • Virtual landowners are free to decide what projects to develop on all their land.
  • They have no clear goals. Players can spend time in the metaverse as they wish.

Landowners have created a range of venues and events in the metaverse, including a casino in Decentraland, a crypto art museum in Somnium Space, and a variety of interactive video games being developed at The Sandbox.

  • Decentraland

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Photo: One of Decentraland’s characteristic neighborhoods

Decentraland (Chinese translation “Decentralized Paradise”), is a multiplayer role-playing game developed by two Argentinian software engineers Estaban Ordano and Ari Meilich. The virtual world is centered on a plaza called Genesis City. It shares some similarities with earlier virtual games like SimCity and Second Life, as well as newer multiplayer games like Minecraft and Fortnite.

What differentiates Decentraland from its predecessors like SimCity is its cryptocurrency-based economic system. Game users can use Decentraland’s own encrypted token “MANA” to buy, sell and develop all land parcels except roads and squares (called “LAND” in the game). MANA’s fully diluted market capitalization is about $7 billion, an increase of more than 322x from its market capitalization of about $20 million at the time of its ICO in 2017.

Decentraland already has a large number of brands and influencers involved. Last July, Sotheby’s launched a virtual art gallery replica of its London gallery in Decentraland’s Voltaire art district. Paris Hilton also hosted a virtual concert here with musicians including Deadmau5, Alabaster dePlume and 3lau.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Photo: Sotheby’s location in Decentraland

  • The Sandbox

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Pictured: One of the many vibrant locations in The Sandbox

Developed by a team in France, The Sandbox is designed to resemble Minecraft – the world’s best-selling video game, with over 228 million copies sold since its release. Although the Sandbox game is not yet fully live, on November 29, 2021, the project released an alpha version to many users, allowing them to experience the earliest version of the gameplay.

One of The Sandbox’s most notable features is its lot map, which allows buyers to place pictures on the lot where their property is located. Over the past 12 months, various popular company logos have popped up on the map, from Atari to The Walking Dead to The Smurfs.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Figure: The Sandbox map. Owners are free to print any image on their land, usually a logo

To date, The Sandbox has secured over 165 IP partners, including Adidas, Snoop Dogg, The Walking Dead, Care Bears, Atari, CryptoKitties, Shaun the Sheep and Square Enix (Tomb Raider and Ultimate creator of fantasy). Each partner intends to develop content in their land, such as multiplayer games and social experiences, as brands look to permanently establish themselves in the metaverse. Meanwhile, NFT projects such as Bored Ape Yacht Club, CyberKongz, Party Degenerates and Solana Monkey Business have purchased land at The Sandbox, each intending to develop their own properties for community spaces, games and events.

  • Cryptovoxels

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Pictured: Several players gather at Cryptovoxels

Cryptovoxels is a virtual world built on the Ethereum blockchain by Nolan Consulting, an independent game developer based in Wellington, New Zealand. The main area is a large square continent called “Origin City”, which is further subdivided into blocks such as “Memes”, “Mars” and “Kitties”. Avatars in this world have a unique mannequin appearance that players can further customize and dress up to look the way they want.

Cryptovoxels allow players to display their own NFTs on their property. For this reason, many enthusiasts in the budding “digital art” ecosystem have started using Cryptovoxels. Digital art galleries are common here. Cryptovoxel’s interface also allows users to view and bid on these artwork auctions.

  • Somnium Space

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Figure: The Realistic World of Somnium

Founded in 2017 by a Czech team, Somnium Space is operationally desktop and VR compatible. Unlike typical grid layouts, Somnium Space’s plots are located along its river and come in a variety of sizes and shapes. There are several mountain tops on the map with a wide view of the world.

Somnium Space has also successfully formed partnerships in its metaverse. Landowners include well-known entities such as Gemini, the cryptocurrency exchange that established a joint headquarters with Nifty Gateway. Cryptocurrencyexchange FTX has also launched its Somnium Space headquarters. These companies interpret what it means to exist in both the physical and virtual worlds. Republic Realm has also established the Republic Realm Academy at Somnium Space, providing virtual classrooms, headquarters and gathering spaces for its Metaverse education program.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Pictured: FTX’s Somnium headquarters

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Pictured: Gemini’s Somnium headquarters

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Photo: Republic Realm Academy

This is the educational institution of the Republic Realm, which recently built a campus in the Somnium Space metaverse.

Virtual real estate investment logic

The monthly average price change for each Metaverse lot reflects one thing: the market is indeed volatile. This should be very familiar to any crypto investor.

In June 2021, the average price of land in the four metaverses is around $6,000. They all average close to $12,000 by December 2021. While Decentraland and Somnium Space regularly averaged more than $10,000 a month over a two-year period, Cryptovoxels and The Sandbox land sales prices only just crossed $10,000 this November.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Figure 1: Average monthly price of land in Cryptovoxels, Decentraland, The Sandbox and Somnium Space

land scarcity

Similar to real-world land, the core driver of land value in the Metaverse is scarcity.

Each metaverse has a different amount of total land supply, which is clearly stated in the metaverse’s white paper (similar to a company’s articles of incorporation). Conceptually, the greater the amount of land in a particular metaverse, the more potential actors and projects that can be built. However, more plots means that without a deep user base to develop and activate plots, the metaverse is likely to become a “ghost city”.

Scarcity is an underlying driver of value in all virtual worlds. At the start of any Metaverse project, the developer states the total number of plots that will be created. This is similar to the “fully diluted shares outstanding” used to calculate stock valuations.

The total value of all land in the Metaverse is roughly equal to the average price of a parcel multiplied by the total number of parcels. This metric is useful for estimating and comparing the total value of different metaverses.

Since the team developing the Metaverse usually holds a large amount of land in the Metaverse in the treasury, the founding team has an incentive to support the value of the land asset by encouraging development and slowly selling new land, so as not to suddenly “flood” the asset price.

The table below illustrates the total land count and other data for each metaverse.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Figure 2: Metaverse plot data

There are only 268,645 plots in total across the four metaverses, while the total number of bitcoins in circulation is around 19 million. While the number of Metaverses cannot be limited, neither can the number of BTC competitors. Although many cryptocurrencies attempt to replace BTC as a digital store of value through fierce competition, BTC’s special status has never been shaken. Similarly, Metaverses like The Sandbox and Decentraland may be replicated multiple times in the future, but their unique gameplay, partnerships, and player base will not migrate frictionlessly to the next competitor. Unless the competitor has a very obvious competitive advantage.

Let’s consider the situation in Manhattan. Manhattan real estate isn’t valuable because of its prime location. In fact, there are many islands along the eastern coast of the United States with similar topographical features and even better climates, but none are as valuable as Manhattan. why is that?

Manhattan is valuable because millions of people have built things there over the centuries—offices, theaters and entertainment, schools, housing, and more. Manhattan has value because of the quality of its development (equivalent to the content in the Metaverse), and the social consensus on its value.

Different sizes, different prices

Sandbox parcels are uniform in size at 96×96 meters, much larger than the 16×16 meters of Decentraland parcels. In contrast, Cryptovoxels and Somnium Space have different sized plot types. Plot sizes for Somnium Space include small, medium and extra large, ranging from 200sqm to 1500sqm, while Cryptovoxels vary widely in plot size. While the price of a plot in The Sandbox is comparable to land in other metaverses (~$10,000), its price per square meter is 41 times cheaper than land in Decentraland and 24 times cheaper than land in Cryptovoxels.

2021 Land Sales Data

Despite the increased interest in the Metaverse over the past few months, the actual number of plots sold in 2021 is lower than in 2020. This is mainly due to The Sandbox’s intermittent public sale of plots in 2020. At the same time, the 5-figure starting price has put off many buyers.

Figure 3 shows the total number of parcels sold each month in 2020 and 2021. As shown, most of the land for sale is land in the Sandbox.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Figure 3: Monthly land units sold in Decentraland, Cryptovoxels, The Sandbox and Somnium Space

The Sandbox has significantly higher sales figures for November 2020 and 2021, with more than 20,000 lots sold in that period. In November 2020, Sandbox ended its “Presale 4.3”. The event has more than 1,800 blocks for sale “prime land”, each piece of land is located in currency security near land owned by other well-known partners. The most recent November 2021 surge was largely driven by Facebook’s late-October rebranding event, which drove a surge in sales across all four Metaverses.

Taken together, the land unit sales figures for the four metaverses provide a clear indication that interest in The Sandbox land is much higher than in other metaverses. This one stands out because it’s the only platform of the four metaverses that hasn’t officially launched yet.

While the number of parcels in The Sandbox represents only 62% of all land in the metaverse, each month in 2021, The Sandbox land sales will account for at least 73.5% of total sales.

Sandbox is more of an outlier when considering the total dollar value of land sales. For example, in early 2020, Sandbox land accounted for 0.79% of total sales, but by December 2021, Sandbox typically accounted for more than 70% of total monthly land sales.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Figure 4: Land sales values ​​in Decentraland, Cryptovoxels, The Sandbox and Somnium Space

In November 2020, the four metaverses sold a total of $87,114,159 in virtual land. A year later, in November 2021, the total was $186,302,763, an increase of 114% year over year.

As of this writing on December 19, 2021, December 2021 is already the third-highest month for total value at over $70 million.

In 2020, Decentraland and The Sandbox have roughly equal total sales. Since 2020, the total value of Sandbox land sales has been steadily eating away at the land sales records Decentraland once held. (Sandbox will account for an average of 64% of total transactions in 2021, compared to 25% for Decentraland.)

As the newest Metaverse platform in the four metaverses, The Sandbox’s success is partly due to its release coinciding with the explosion of the Metaverse concept. However, its outperformance by its rivals suggests that The Sandbox’s success may not just be a blessing in disguise.

More buyers are entering the market

More companies and individuals are buying Metaverse land than ever before.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Figure 5: Cumulative totals of landowners in Cryptovoxels, Decentraland, The Sandbox and Somnium Space

Since the beginning of 2020, the cumulative number of landowners in the four metaverses has increased by 1,132% to a total of 24,598 by mid-December 2021.

Like the other metrics discussed, this number is largely influenced by The Sandbox, which accounts for nearly 70% of the total, while platforms account for 62% of the total number of parcels. Meanwhile, Decentraland’s owners make up about 15% of the total number of owners in the entire metaverse, and Decentraland’s share of the total number of parcels is 30%. The number of plots per person in each metaverse can have a significant impact on its future land prices, as land in some metaverses is more concentrated in the hands of a few people.

Four Metaverse Research Conclusions

The virtual land in The Sandbox is having a breakthrough year in 2021. Across multiple metrics, the platform shows undeniable dominance over the other three metaverses. While we’re passionate about The Sandbox, we also believe there are some very interesting land-buying opportunities in the other three metaverses, notably Somnium Space and Cryptovoxels, where land is also more scarce.

The average price per piece of land in these four metaverses is currently between $10,000 and $15,000. We attribute price convergence to buyers’ inability to assess whether land in one metaverse is more valuable than land in another.

So far, land scarcity in Metaverse real estate does not equate to higher land values. Conversely, in the metaverse, more land means greater total value. While a single parcel in Sandbox may not be more valuable than owning a parcel in other Metaverses, the total value of Sandbox real estate is more than the sum of the other three Metaverses.

As more metaverse platforms roll out, we expect new land-trading models that will benefit metaverses with premium content, community activity, organic game mechanics, and user experience centricity. Currently, The Sandbox is the clear winner in this space.

Other Metaverse Platforms

Metaverses are video games at their core, and video games take a long time to develop — years, not months. That means those more realistic and interactive metaverse projects may take a while to develop. Compared with the current hot Metaverse concept hype, there is a certain lag in real technology. However, there are some exciting projects in various stages of planning that hint at a bright future for metaverse technology.

The projects we are watching closely are some of the most realistic and versatile platforms built by blockchain and industry leaders. Platforms like Star Atlas, Pixelynx, SPACE, Big Time, etc. will most likely wow everyone when they launch. The virtual economy will rise by relying on its own powerful economic system, e-commerce will become a high-quality experience, and the community-driven cooperation model will be redefined.

Being an “insider” of the Metaverse ecosystem, the Republic Realm is often able to acquire plots before a Metaverse project is launched. Getting in early at a relatively low cost is one strategy to reduce the risk of investing in Metaverse real estate.

In recent months, Republic Realm has invested in the following projects:

  • Aavegotchi  – Aavegotchi is a crypto collectible Avatar for exploring the Aavegotchi digital universe. Each Aavegotchi has a rarity score based on a unique combination of its character traits. By borrowing from Tamagotchi’s success, Aavegotchi is trying to bring the classic darling back to the blockchain.
  • BigTime  – BigTime is a multiplayer action role-playing game (RPG) founded by former Decentraland CEO Ari Meilich.The game is touted as a AAA-rated NFT action RPG, the first of its kind. The project attracted successful development talent from traditional games, including former concept artist Carlo Arellano of World of Warcraft and former concept artist Tom Zhao of League of Legends.
  • Bit.Country  – Bit.Country is a platform that helps users build their own metaverse. Using 3D worlds, NFTs, and earning games, creators can take community engagement to the next level of decentralization. With no technical skills required, creators can even launch their own social tokens for circulation in the virtual worlds they design.
  • BYOVerse  – BYOVerse innovatively proposes the concept of “Consumables of the Metaverse”. Its ecology is built around BYOPills – an NFT that provides different utility when “consumed”. They also plan to sell BYOLand, the land units that make up BYOVERSE. The composition and attributes of a user’s BYOPill have a significant impact on the terrain and resources of their BYOLand.
  • Cradles  – Cradles is a fantasy RPG game set in a prehistoric era with VR compatibility. The world is divided into a main urban area and an adventure area, whose original inhabitants were animals that were extinct during the Triassic era. Cradles transports the player to another era before human civilization. Players can even play as these creatures, whether soaring through the skies as a pterosaur or stomping across terrain as a mammoth. With materials obtained in the game, players can create NFTs and sell them to other players.
  • DeHorizon – DeHorizon intends to create a cross-chain virtual carnival where Metaverse users can play other user-generated games. DeHorizon governs token management through DEVT (Decentralized Eternal Virtual Traveler), allowing owners to make decisions about the future of their game development. Its gaming ecosystem currently includes Battleroyale “DeTournament”, Dragon-racing “DeQuidditch” and more.
  • Dvision  – DVision’s Metaverse consists of a number of Meta-Spaces, ie units of land available for sale. In Meta City, users can play games, win NFT prizes and trade NFTs in the NFT market. By using $DVI tokens players can trade with the connected wallet .
  • Embersword  – In the world of Thanabus, players fight each other (PVP) and play (PVE) for token rewards.EmberSword’s economy is built on Matic for including land and item sales on the blockchain . In the four countries, players can take ownership of plots, settlements, towns and cities.
  • Highstreet  – Highstreet is building the future of e-commerce by connecting brick-and-mortar brands to the metaverse. As a springboard for brands to build their avatars, Highstreet aims to connect brands and users into a virtual space. Products and storefronts in this interface can be owned and sold by real-world brands.
  • Mirandus  – Developed by blockchain gaming company Gala games, Mirandus brings the medieval era into the future with a playable and earning MMORPG. The Mirandus is divided into 1625 separate covenant societies with a range of tradable estates including castles, barns, majestic temples, tanneries, stables and more.
  • Nifty Island  – A pioneer in the latest genre of social media, the social metaverse, Nifty Island is building an ecosystem for creators and collectors to showcase artwork, games and community engagement. All players are given an island at the start of the game without competing for scarcity in land allocations.
  • Pixelynx  – As various entertainment media enter the metaverse, Pixelnyx is developing technology that seeks to improve the audio and music experience in the metaverse. Pixelnyx is betting on blockchain as the ultimate way to optimize games and music, and has made a series of acquisitions of companies and assets to bring music to Web 3.0.
  • Star Atlas  – Star Atlas is a futuristic virtual game metaverse set in outer space. In this world there are three factions that govern the explorable universe, (1) MUD, ruled by humans, (2) ONI, ruled by various alien races, and (3) Ustur, ruled by sentient robots. As a AAA NFT game on Solana, players can either own their ships as NFTs or use them to find valuable resources throughout the universe.
  • SPACE  – Space is building a commercial metaverse, optimized for commodity trading, socializing, and building unique experiences. Primarily aimed at the arts, music and fashion sectors, the service leverages the utility of blockchain in confirming digital authorship and paying royalties to creators. Their metaverse is divided into different “spaces” that organize the user-owned economy.
  • Treeverse  – Treeverse’s goal is to meet the community’s need for equal opportunities for participation. While the NFT community is primarily focused on Web 2.0 platforms like Discord and Twitter, Treeverse hopes to bring these communities into the Web 3.0 metaverse and gamify the community experience.
  • Wilder World  – Wilder World brings the open-world feel of the Grand Theft Auto game and the tokenized real estate, luxury marketplace to Web 3.0 through a DAO hub, game-play earning model. Life in the Wilder World city “Wiami” is full of entertainment, luxury and relaxation.

The new metaverse means diversity across different blockchains. In recent months, Republic Realm study based on many different chain of projects, including Ethereum, Solana, Binance Smart Chain, Polygon , the X-the Immutable, Avalanche , Harmony, Near, Cosmos , Polkadot , Aave, Terra, Enjin, Flow and Wax.

Projects built on Ethereum (including sidechains), Solana, and BSC have gained the most users so far, but the race to dominate the metaverse gaming chain is far from over. One of the most successful games of the year, DeFiKingdoms, is built on the Harmony chain and is about to be built as a bridge to the Avalanche chain. This 2D fantasy project has taken the gaming space by storm with its nostalgic RPG elements, solid DeFi features, and immersive virtual experiences. If DeFi Kingdoms maintains its current trajectory, we will undoubtedly see more applications adopting EVM-compatible chains.

Metaverse Real Estate and Play-To-Earn Games

The most notable P2E game in the metaverse is Axie Infinity , which experienced record-breaking growth in 2021. In this game, players get in-game token rewards (AXS, SLP) through the fighting wizard “Axie”. These tokens can be traded on cryptocurrency exchanges such as Binance and Coinbase . Axie Infinity was reportedly  valued at $30 billion in October, largely thanks to its Q3 performance making it the most-traded NFT series of all time , surpassing the NBA Top shot and CryptoPunks. Axie’s NFT sales in the third quarter of 2021 were $2.08 billion, accounting for almost 20% of the entire NFT transaction volume during the same period. The platform has more than 2 million daily active users this year, a figure that has given this nascent P2E game the recognition of the larger gaming industry.

2021 Metaverse Virtual Real Estate Report: In-depth analysis of ecological progress and market trends

Figure 6: Axie Infinity’s transaction volume, in millions of dollars

In addition to NFTs and game components, players can also purchase digital lands in-game. The Axie Infinity land, called Terra, incorporates traditional real estate economics principles such as location pricing and the ability to lease or develop the plot. These lands will also have some assets and equipment popping up on the plot from time to time. Today, gamers are actively exploring land in the Axie Infinity metaverse, with Terra plots selling for up to $250.

At the heart of any game is a simple transaction between the player and the platform – time for enjoyment. As blockchaindevelopers have begun to explore the gaming industry over the past few years, innovative solutions such as Rollup and sidechains have come to fruition through the idea and creation of different games. Sky Mavis developed the Ronin chain specifically for Axie Infinity, providing a more flexible blockchain gaming solution than Ethereum. After reaching unprecedented popularity, Gods Unchained crafted Immutable X – an instant, gas fee-free Layer 2 Ethereum protocol.Both projects have reaped huge gains thanks to technological breakthroughs. This type of development continues to attract our interest, including scalable NFT protocols, projects built on emerging blockchains, EVM compatibility, and non-gaming platforms.

Other breakthrough developments include EIP-3664, a new NFT standard to be built by Cradles. It envisions a new modular system for NFTs that allows individual components of a digital game asset to be removed, sold, or added to another asset, reminiscent of the RPG mechanics players know and love. In theory, the new standard will allow infinite scaling of assets without duplication of work, and will likely open the door to a new world of cross-chain collaboration.

in conclusion

2021 largely solidifies key technologies with the Metaverse as the main use case, including VR and Web 3.0. The total land sales value in November increased by 114% year-on-year, proving the upward trajectory of a nascent industry, and it is believed that more records will be broken in the future.

The success of the Metaverse is inseparable from the growing interest in verticals such as Web 3.0 and NFTs. Fundraising in these two sectors accounted for $1.8 billion of the total $8.2 billion raised for crypto businesses in Q3 2021. In addition, the use of encryption technology and blockchain is also on the rise in 2021, further promoting the “out of circle” of the metaverse. Daily active addresses sending or receiving Ethereum increased from 511,250 at the beginning of the year to a peak of 905,234 in April, an increase of 77%. The metaverse has become an integral part of the crypto world.

If interest and development in the Metaverse continues to grow, it could soon become a major part of the entertainment and gaming industry. Metaverse games currently generate revenue not only for the developers of the Metaverse itself, but also for the game teams, users, and investors in these Metaverses. Grayscale estimates that revenue from the virtual gaming world will rise from $180 billion in 2020 to $400 billion in 2025.

Meanwhile, Emergen Research expects Metaverse revenue to grow at a CAGR of 43.3% through 2027 and to reach $828.95 billion in 2028. With Metaverse-related tokens reaching a staggering $37 billion total market cap in December, if these predictions hold true, it will bring more billions of dollars in capital to the space.

While the metaverse is an emerging field, content and user engagement may become the metrics that determine the success of each platform in the coming years. Projects that secure and deliver interesting partnerships, interactive content, and gamified experiences will ultimately benefit from user stickiness and the accompanying land price appreciation.

More surprises will come to this controversial realm of the metaverse in the future, and it won’t be long.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/2021-metaverse-virtual-real-estate-report-in-depth-analysis-of-ecological-progress-and-market-trends/
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