Virtual land in demand amidst metaverse hype
Popular virtual world platform Somnium Space’s latest land sale has been a big hit with players and investors alike. After just one week, the tertiary land sale has brought about 70 NFT asset sales, totaling over $1.5 million in sales volume. Interestingly, this is the first time assets have been available through the Solana Haloplex NFT marketplace. A move that appears to be paying off, as Haloplex registers two of the most expensive sales in the last week.
Somnium Space is a virtual world in which users can own land. Land parcels come in different sizes. The bigger the land, the more expensive. In addition, the location can influence the pricing. For example, a land parcel bordering a road or the lake tends to be more valuable. Somnium Space also offers Worlds, a type of NFT that represents ownership and access to a virtual world.
Not surprisingly, medium and XL land parcels, and Worlds are amongst the most popular assets. They arguably represent the best value for money. Potentially holding the best appreciation due to their size. Interestingly, more XL land parcels have been sold through the Solana-based NFT marketplace Haloplex stores than on the Ethereum-based OpenSea. Presumably, buyers look to avoid gas fees. The top sale was for an XL World that sold for over $145,000.
Looking at top sales on Ethereum-based marketplace OpenSea we see an XL World sold for almost $76,000. Almost half the price of the one on Haloplex stores. It would appear that investors looking to avoid gas fees are actually inflating prices on the Haloplex NFT marketplace due to higher demand. The same is also true of XL land parcels. One reason for this could be that the token price of SOL has increased over 9500% in the last year. Holders could be simply be finding a new place to invest their profits.
NFT assets in Somnium Space can represent land parcels, entire worlds, avatars, and more. They are used by players to engage with the virtual world. Purchasing a land plot is just the beginning. From there, owners can build out their fantasies, hold events or simply showcase their NFT possessions to other Somnium residents. Of course, ever since Facebook’s Meta rebrand announcement all eyes have been on the virtual world and metaverse platforms, and their tokens and assets.
Last week, investors, gamers, and future citizens of the metaverse invested more than $53 million into virtual real estate. At the moment most money goes into The Sandbox, followed by Decentraland. Somnium Space is arguably one of the most developed virtual worlds. Plus, investment from the Winkelvoss twins last week is sure to push the platform to new heights.