The cryptocurrency industry is generally declining, but the metaverse continues to thrive, a new study from Chainalysis reveals. From September 2019 to March 2022, virtual real estate prices rose by 879 percent. On the other hand, the real estate price rose by 39 percent.
According to Chainalysis, the growth of virtual real estate prices is 532 percent higher than that of physical real estate. The research firm explains some of the current utilities and future benefits of owning virtual real estate. This includes embedded videos, images, NFTs, and interactive objects; single-player and multiplayer in-game activities; play-and-earn integrations; screen sharing and town hall functionalities; access to private events and NFT gated communities.
The report notes that access to private events and exclusive communities has been a big driver of NFT demand so far, and it appears to be translating into virtual real estate sales. “For example, Bored Ape Yacht Club has always bundled its NFTs with entertainment, socialization and digital community. and they’ve since turned that appeal into a $310 million metaverse land sale,” the report said.
Furthermore, the price of the land in metaverse also depends on the blockchain in which it is hosted. “Solana’s average gas fee of $0.00025 is a very small fraction of Ethereum’s average gas fee of $5 to $50. This allows metaverse landowners and developers to see better and more affordable deals on Solana. However, Ethereum-based Metaverse projects are Also integrated with the Layer-2 scalability platform Polygon, this Ethereum sidechain delivers competitive pricing and speed performance for Solana,” the report adds.
Meanwhile, the NFT market is leveling off as: the global crypto market continues to crash† According to the CryptoSlam NFT tracker, NFT sales have fallen 150 percent since April. The average price of an NFT has fallen from $589 in April to $192 in June, a 67 percent drop in value. The number of trades taking place in the NFT space is also witnessing a significant drop from 62 lakh trades to 27 lakh trades. The Bored Ape Yacht Club (BAYC) NFT Collection is now trading below $100,000 for the first time since August 2021. The bottom price has fallen 100 percent since May, when BAYC NFTs sold for $200,000 each.