Virtual Real Estate In The Metaverse Is Declining In Value 

Decentraland is known as one of the most prominent virtual real estate platforms in the metaverse. While it was once valued at $1 billion, revenues have been on a major decline within the past year, according to reports from The Block

Only a handful of users have reportedly been trading virtual real estate in Decentraland. The real estate traded can be transacted in the form of NFTs for users. 

Embed from Getty Images

According to the reports from The Block, only about 20 to 30 people are actively buying and selling property weekley on the platform; valued at about $50,000. This marks a massive decline when compared to the millions of trades being made between 2021 and 2022. 

This decline shows a major lack of interest in owning virtual real estate, and the metaverse in general. 

While Decentraland had a billion-dollar market cap originally, reports from data collector DappRadar showed that only 38 active users were present over a 24 hour period on the platform. Other platforms within the metaverse have had the same level of struggles within the past year. 

Embed from Getty Images

According to The Block, Decentraland also saw a decline in their Fashion Week event. Last year, over 60 brands sponsored the virtual fashion event with over 100,000 users showing up. This year, however, only about 26,000 users attended the event. 

According to a gaming report from Jay Peters, “the world didn’t feel very alive. While walking around, I’d usually only see one or two other people in my vicinity.”

Hunter Swihart, a metaverse architect, told The Block that he wouldn’t be surprised if Decentraland would completely go under as a business in the near future.

“Everybody saw prices skyrocketing with big businesses buying land for millions of dollars, which now in retrospect was a terrible mistake.”

This decline in interest in virtual real estate shows that users are losing interest in spending their money within a virtual world, and the metaverse in general is losing hold of its audience.

Virtual Real Estate Marketplace Launching In Metaverse 

Origin is a technology company that is gearing up to launch a virtual real estate marketplace in the metaverse that can be done across multiple blockchains. Origin is providing a singular marketplace for users to buy, sell, and trade land in the metaverse, as well as physical homes sold as NFTs. 

Origin is aiming to be like traditional real estate platforms in the sense that they will be a hub for sellers and buyers to connect with each other based on the clients needs. 

Embed from Getty Images

According to Fred Greene, the founder of Origin, “the demand for metaverse land is continually growing. What the market needs is a single source of data. A reliable platform that simplifies the purchasing of land, while providing buyers and sellers with all the information they need to navigate the process.”

The current metaverse marketplace makes it difficult for transactions to occur over multiple blockchain platforms. Origin is hoping to fill this space in the industry by acting as the middleman between sellers and buyers, and interacting with hundreds of tokens and metaverse worlds. 

By simplifying the transactional process, Origin is hoping to make digital real estate available for everyone. The company wants the masses to see the metaverse as universally accessible so that more people can take advantage of the many perks that it can offer. 

Beyond giving buyers easier access to real estate, Origin is aiming to build communities of active and interested buyers and sellers, who will be able to advertise their listings in front of a much larger audience than the metaverse currently allows. 

Embed from Getty Images

By becoming a multichain platform and simplifying the overall transaction process, Origin is creating a space for even more buyers. 

The company is reopening current barriers that make it difficult for architects and innovators to communicate with each other on certain projects. The metaverse is known for hosting a multitude of isolated worlds catered to each user. Origin is building bridges to make it easier for those worlds to come together when it comes to real estate transactions.

Origin is patent-pending currently, and is aiming to be a major marketplace that focuses specifically on metaverse land. The company has plans to incorporate the sale of both real world properties as NFTs as well as virtual properties. 

The company is currently on track to become the biggest hub for buyers, sellers, and renters, as it will likely be the only source for all metaverse real estate transactions across multiple blockchains.

The Metaverse Looks To Be The Next Real Estate Market As Virtual Land Sells For $4.3 Million

Are you a real estate investor, but hate the travel and tedious upkeep? The Metaverse might have solved all your woes. On Tuesday, Republic Realm purchased a virtual plot of land for $4.3 million, making it the largest metaverse real estate acquisition to date.

This deal comes just a week after a 500-square-foot plot of virtual land was purchased by the Metaverse Group — a real estate investment trust (REIT) — for a then-record $2.43 million. The site is planned to host fashion shows and e-commerce for a number of brands.

Embed from Getty Images

Metaverse Group calls themselves “the world’s first virtual real estate company,” and intends to focus on buying, selling, and developing virtual pieces of real estate in the Metaverse. Republic Realm also appears to have a similar strategy.

The real estate properties being sold in this case are known as non-fungible tokens, or NFTs. NFTs can come in various forms, from images to trading cards.

The Metaverse was created by Facebook (now Meta) founder Mark Zuckerberg. Essentially, the Metaverse is a digital world filled with various realms that combines different types of technology — such as virtual and augmented reality (VR and AR), as well as artificial intelligence — to allow users to work, hang with friends, go to a concert or movie, travel, essentially anything you might desire.

According to digital currency investor Grayscale, goods and services within the Metaverse have the potential to earn $1 trillion annual revenue, and that revenue could grow to $400 billion by 2025 – a $220 increase from 2020. Meanwhile, experts believe the Metaverse economy will become fully functionable within a couple of years.

However, whether or not the real estate aspect continues to boom remains to be seen. As The Independent notes, Decentraland — which is made up of five districts — is one of several VR platforms that offers Metaverse property listings. It’s also called one of the “most advanced” in the blockchain universe. Among the other realms include The Sandbox, Somnium, Cryptovoxels, and Upland.

Embed from Getty Images

A number of notable virtual real estate deals in the Metaverse have occurred throughout the year. Republic Realm purchased a 16-acre plot for nearly $1 million ($913,228.20 to be exact) in June, while Axie Infinity announced one of its properties sold for $2.3 million on Nov. 27.

Over the last seven days, 530 properties in Decentraland were sold, with a trading volume of $17.5 million and an average price of $32,500. Decentraland saw a boom in purchases following Facebook’s switch to Meta – average properties bought daily before Oct. 28 ranged from five to the rare 30. Following the announcement, Oct. 29 saw 129 properties purchased, and Decentraland has had a steady daily rate since.

Early birds to the industry were well-rewarded. In January, a plot of land could go for $2,000. Now, buyers are able to resell their properties for sums over $150,000. Of course, the market is far from foolproof. As Futurism explains, there’s no guarantees that landowners make any return on investments, or even open up their land to the public. Many of the realms and cities, such as Decentraland’s Genesis City, are still closed and have no release date, despite the cash being thrown around that would suggest otherwise.

Billionaire Businessman, Orlando Bravo, Claims The Metaverse Will Be Big, And Should Be Invested In 

Puerto Rican billionaire businessman Orlando Bravo, co-founder and managing partner of the private equity firm Thoma Bravo, claimed this week that the metaverse will be the “big word of 2021, and is a big time investment.” 

“The metaverse is very investable, and it’s going to be very big.” 

Embed from Getty Images

Much like the movie “Ready Player One,” the metaverse is a sci-fi concept where humans put on some sort of virtual reality gear that allows them to live, work, and play in a virtual world. The concept has been viewed as a utopian dream, and a dystopian nightmare, depending on your standpoint. 

Facebook’s co-founder Mark Zuckerberg announced his company’s plans for the metaverse last month. Zuckerberg also recently changed the name of Facebook to Meta, claiming the new company will have a major focus on the metaverse. 

“The metaverse is the next frontier just like social networking was when we got started.”

Embed from Getty Images

The entire concept of the metaverse has been heavily debated online. One marketing campaign in Iceland even went as far as to mock the metaverse announcement video as a means of bringing in tourists. In the video, a Zuckerberg lookalike introduces viewers to “Icelandverse, a place of enhanced actual reality without the silly-looking headsets.” 

Beyond Facebook, tech giants like Microsoft, Roblox, and Nvidia are already trying to enhance their software so that it’s compatible with the metaverse, and can even be used to power it if needed. 

Thomas Bravo alone has more than $83 billion in assets under management and a portfolio that contains more than 40 software companies. Beyond his excitement for the metaverse, Bravo also discussed his passion for cryptocurrency and bitcoin. 

“How could you not love crypto? Crypto is just a great system. It’s frictionless. It’s decentralized. And young people want their own financial system. So it is here to stay,” Bravo said.