Although the rise of the Metaverse has slowed down since its peak seen in 2021, virtual land remains one of the most promising businesses in the digital worlds.
Recently, Laser Digital Holdings, the digital asset subsidiary of Japanese giant Nomura Group, acquired a plot of virtual land in the decentralized metaverse The Sandbox, based on the Ethereum blockchain, to create a Japanese-style botanical garden experience, honoring its cultural roots.
The company's initiative in the Metaverse, which is developed under the name "Nomura & Laser Digital Botanical Garden”, is part of its strategy to deepen innovation in the crypto sector.
Laser Digital explained that the virtual botanical garden experience also corresponds to its commitment to environmental sustainability, so within the blockchain Metaverse visitors will even be able to grow a personal bonsai. Likewise, visitors to Nomura & Laser Digital Botanical Garden will also be able to interact with avatars of Nomura executives, to learn more about the company, Japanese culture, among other topics of interest.
While it's unclear how much Laser Digital paid for the virtual plot in The Sandbox, as Republic Realm's Janine Yorio said last year, each piece of land in the Metaverse is priced based on its location, just like in the real world.
Laser Digital Holdings CEO Jez Mohideen emphasized that the company was eager to explore the potential of the Metaverse, to further Nomura’s progress in the digital asset sector. For Mohideen, the acquisition of a virtual plot in The Sandbox has therefore been an excellent investment.
Real estate in the Metaverse attracts big brands
Like Laser Digital Holdings and Nomura Group, other companies such as Warner Music, Adidas y HSBC, and even celebrities, have been acquiring virtual plots in the Metaverse in order to build virtual properties and develop new projects. For example, one of the most well-known cases is that of Paris Hilton, who created a virtual island to offer his fans a tour of his magnificent Beverly Hills mansion and other luxuries, such as an amusement park and even concerts.
Also, the rapper Snoop Dogg purchased a plot of land in The Sandbox to build a virtual mansion and offer new experiences to its fans and followers.
Although the virtual real estate business is in an early and still speculative stage, DappRadar analysts believe that early adoption by global brands, coupled with the innovation of blockchain technology and the growing development of Web3 games, “strongly hints that these virtual universes can mastering the future landscape".
Last year, virtual land and various properties that only exist in metaverses like The Sandbox and Decentraland reached a value of several million dollars. According to DappRadar, this is due to the untapped future potential of the virtual world, which goes far beyond gaming.
Grayscale, one of the world's leading digital asset firms, estimates that real estate in the Metaverse could become a multi-billion dollar business, with the potential to reach up to $1 trillion in the coming years.
The main virtual land projects in the Metaverse
Knowing the potential of virtual land in the Metaverse, it is important to know which virtual universe platforms currently exist and which allow the acquisition of plots, even if they do not physically exist.
The Sandbox, mentioned above, is a Metaverse platform that uses the Ethereum blockchain and offers a Minecraft-like experience. This metaverse allows its users to own virtual land and be able to build on it to sell or rent properties, among other things.
Last year, The Sandbox amassed almost $500 million in virtual land sales operations, according to data consulted in NonFungible.
Also, based on the Ethereum blockchain, there is Decentraland, one of the most popular metaverses today. Decentraland offers access to an open world where users can buy, sell, own, and build on virtual land.
According to NonFungible, virtual land sales in Decentraland last year exceeded $ 154 million dollars.
voxels, another virtual world based on the Ethereum chain and using NFTs, allows users to purchase and customize plots of land. In this metaverse, users can build buildings, art galleries, shops, and other spaces using intuitive tools. Voxels sold more than $20 million in virtual land last year.
Somnium space It is another of the virtual worlds based on the blockchain that allows you to buy land and build properties that can be monetized instantly, offering the experience to other users through rentals and services.
According to data from NonFungible, last year 1,000,000 units were sold $17 million in virtual plots in Somnium Space.
Lastly, Worldwide Webb or W3, is a metaverse that offers access to a dystopian virtual world where users can purchase virtual land and build properties or spaces to host social events, pets, avatars, among others. More than $ 81 million dollars were sold in virtual land within the metaverse last year.
Although virtual land sales volume has declined this year, many companies remain confident in the potential and capabilities of the metaverse, which could transform the way we communicate, work and interact in the future.
Regarding Nomura Group's recent investment in The Sandbox, Ledger Insights highlighted that, in the future, it will be possible to meet with an investment advisor or go to a bank branch without having to leave our homes. And all this, thanks to the Metaverse.
Continue reading: 5 business models that are emerging in the Metaverse
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