Digital real estate has blown up to mind-numbing proportions, and this Ethereum metaverse seems to be leading the charge. Covered: The Sandbox Land Sales Where Is The Digital Real Estate Market Going? The Sandbox is, without a doubt, one of the biggest Ethereum metaverse platforms on the market. With its digital real estate drying up […] The post This Ethereum Metaverse Is Running Out Of Land To Sell appeared first on CryptosRus.

This Ethereum Metaverse Is Running Out Of Land To Sell

Digital real estate has blown up to mind-numbing proportions, and this Ethereum metaverse seems to be leading the charge.

Covered:

  • The Sandbox Land Sales
  • Where Is The Digital Real Estate Market Going?

The Sandbox is, without a doubt, one of the biggest Ethereum metaverse platforms on the market. With its digital real estate drying up from the market, it calls into question whether we’re about to witness the end of a wild Web3 fad or the beginning of much greater demand in the metaverse market.

RECOMMENDED: $4.2 TRILLION ASSET MANAGER IS DIVING HEAD FIRST INTO CRYPTO AND THE METAVERSE

The Sandbox Land Sales

As reported by blockchain data analytics firm Messari this morning, The Sandbox is running out of land to sell, with about 2/3 of the digital real estate supply being already distributed and held by The Sandbox’s fervent community.

“65% of all the LAND parcels have already been distributed, up 2% from Q4 2021.”

The analytics firm also reminds that The Sandbox has a finite supply of LAND parcels totaling 166,464 plots.

Despite the rising amount of land plots getting scooped off the market though, the rate at which LAND is selling appears to be slowing down after a rush of demand in Q4 of 2021. However, it’s still up a staggering amount compared to Q3 of 2021.

“LAND secondary sales volume decreased by 54% compared to the previous quarter.

To put this into perspective, the secondary sales volume in Q1 2022 is still up 865% relative to Q3 2021.”

Here’s a look at the breakdown showing LAND holders’ conviction in their digital plots. For the vast majority of people, they tend to only hold onto their land for approximately 1-3 months.

RECOMMENDED: THIS IS WHERE JP MORGAN THINKS THE METAVERSE IS GOING

Where Is The Digital Real Estate Market Heading?

As of right now, individuals and rich institutions alike are allocating to the digital real estate market, and it begs the question as to just how large this market will get.

There seems to be a big misconception brewing in the metaverse, however, that scarcity will drive the prices of these lands higher. As highlighted by The Sandbox, the team incorporated a fixed supply of LAND plots to distribute, which is a curious move considering the fact that, unlike the real world, there are no bounds to virtual reality, just as there is no limit to how many websites we can build on the internet.

Now, this doesn’t mean that these LAND plots are driven entirely by false value propositions. I think what’s really going to drive the value of digital real estate is not the scarcity factor, but rather the location factor. This is untrodden territory for the internet, because in its current form, location isn’t really a consideration at all. We’re all accessing websites through the same two-dimmensional screen, aren’t we?

Location could become a critical demand-driving factor in a fully fleshed-out metaverse, because it’s certain that there will be more “hotspots” in certain sections rather than others. High-traffic metaverse cities will be getting a lot more virtual foot traffic, and thus a lot more eyes to display advertisements for.

We’ve seen early iterations of “metaverse advertising” through the likes of traditional video games we see today.

Travis Scott and Marshmellow held their own virtual concerts within the Fortnite universe, tapping into an entirely new fanbase to grow their audiences. The designer brand Balenciaga incorporated its new line of futuristic clothing into its dystopian game Afterworld. Nike, Adidas, Puma, and other companies have already gotten to work on filing for their own metaverse trademarks to showcase their clothing to consumers in the virtual landscape.

All of this is spelling out a crystal clear picture: the metaverse will open the flood gates to an entirely new medium of virtual advertising. And if that’s the case, I’d imagine companies will be paying top dollar to host their ads in pristine locations in the metaverse world as opposed to the highly coveted banner ads you’re seeing throughout this article.

The post This Ethereum Metaverse Is Running Out Of Land To Sell appeared first on CryptosRus.