Although there has been a massive slowdown in the crypto space since the beginning of 2022, interest in the metaverse remains. Chainalysis latest report shows that real estate and gaming continue to thrive in the metaverse.
The blockchain analytics firm takes a large amount of time to explain its growth comparisons. From September 2019 to March 2022, blockchain-based virtual real estate prices increased by 879 percent. On the other hand, it is stated that there is a 39 percent increase in normal real estate prices.
Of course, the virtual real estate industry cannot compete with the real estate industry in absolute terms. Chainalysis, on the other hand, said, “It is still surprising that the increase in virtual real estate prices has outpaced the growth of physical real estate by 532%”. He uses his words.
Additionally, Chainlaysis explains some of the current and potential benefits of owning digital real estate. Today's utilities include embedded videos, images, NFTs, and interactive objects. It also has play to earn integrations. However, one of the most important distinguishing factors is access to special events and gated NFT communities. This seems to have turned into digital real estate sales, especially by providing a big boost to NFT demand.
Chainlysis explains that it brings NFTs of the popular BAYC project together with the entertainment and digital community. They successfully translated that into a $310 million metaverse land sale. Some of the possible utilities are rental and leasing, free airdrops of future VRE NFTs, as well as future AR/VR integrations and functionality.
According to Chainalysis, the biggest differentiating factor for Metaverse land pricing is the blockchain hosting virtual real estate. For example, metaverse lands built in Solana have much lower prices compared to metaverse lands on Ethereum because Solana's average transaction fee of $0.0025 is a fraction of Ethereum's average gas fee of $5 to $50. Thus, metaverse landowners and developers can see better and more affordable deals in Solana. However, Ethereum-based metaverse projects are also integrating with Layer-2 scalability platform Polygon. This Ethereum sidechain offers Solana competitive pricing and speed performance.