As recently reported by CNBC, with data courtesy of MetaMetric Solutions, Metaverse real estate sales totaled $501 million in 2021. That includes land sales for all the major Metaverse universes that have come online in the last few years. According to MetaMetric, sales are expected to double in 2022, making virtual real estate a billion dollar industry.
MetaMetric has based their analysis on $85 million worth of virtual real estate sales in January. Extrapolated over a year that’s enough to give us a billion in sales. However, these numbers can rapidly change. For example, sales topped out at $133 million in November of 2021, and have been falling since then. Nonetheless, January’s sales number for 2022 are a 10x improvement over what was sold in January of 2021.
Another firm, Brand Essence Market Research, has also released a report which claims that, “The Metaverse Market Size was valued at USD 209.77 Billion in 2021 and is expected to reach USD 716.5 Billion by 2027 with a CAGR [Compound Annual Growth Rate] of 22.7% over the forecast period.”
In terms of popularity, the four largest virtual universes are Sandbox, Decentraland, Cryptovoxels and Somnium. These four platforms have a combined total of approximately 250,000 virtual land parcels.
One of the hallmarks of the Metaverse’s increasing popularity is the entrance of the professional speculator. Development firms are buying up land in the Metaverse and reselling it, just as developers do in the real world.
For example, Republic Realm recently paid $4.3 million for a large chunk of virtual land in Sandbox. It was the largest sale of virtual land in history (as priced in dollars) but we have a feeling that the record will get broken soon. Altogether, the company owns more than 2,500 plots of land located in more than a dozen virtual worlds.
Where’s the Metaverse headed? Grayscale has an even more ambitious target than Brand Essence Market Research. According to Grayscale, “The Metaverse is estimated to be a trillion-dollar revenue opportunity across advertising, social commerce, digital events, hardware, and developer/creator monetization.”
A trillion dollar industry! If that’s the case it means that even now we’re incredibly early. No matter how much land prices have already gone up in the last year, there are still lots of great opportunities for anyone willing to take some risk with a brand new asset class. It’s exciting times!
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.