Virtual real estate has made headlines in recent months for mind boggling prices as everyone rushes to own a piece of the metaverse.
Some believe it’s just part of a trendy fad, while others believe that this only the beginning. Either way, there’s one key difference about virtual land: unlike the real world, they actually can create more metaverse land.
And while everyone seems to want a piece of the metaverse, more and more developers are building their own worlds within it. Could this finally bring down the prices of virtual real estate? Here’s why we think it will.
Startups Using Lower Prices to Attract Buyers
Right now, it seems that getting in early is the best strategy for finding cheaper metaverse land (although this could change). We’ve previously covered how startups like Meta Ruffy and Infiniverse (among others) are attempting to attract customers with lower land prices. When supply increases, prices decrease – unless demand also increases. So is that happening?
The metaverse land market is expected to grow 31% over the next six years. That’s a fairly decent rate, but it may not be enough to keep up with all of the industry’s new providers and platforms. In addition to those listed above, ShibaSwap has announced Shiba Lands (formerly code named Shiberse) based on the popular Shiba Inu meme coin.
ShibaLand.org is also building a virtual world named after the Shiba Inu (although it is not affiliated with ShibaSwap). Their prices currently start at $30 for personal land ($50 for business) but are set to rise to $200 and $500 respectively at the beginning of March.
Big Tech’s Influence
And then there are the ambitious plans of giant tech firms like Meta and Microsoft. Both have dedicated significant resources to developing the metaverse.
They have the potential to flood the market with new (and cheap) virtual real estate. Meta is especially poised to significantly undercut the prices of other virtual worlds since they rely primarily on advertising revenue.
The Future of Metaverse Land
Ultimately, it seems unlikely that prices will remain as high as they have been. It’s becoming just as lucrative to develop new metaverse land as it is to buy it. Also, it’s worth mentioning that tech prices (in general, with exceptions) fall over time.
That doesn’t necessarily mean that investors and businesses should wait to purchase virtual land. Both have found great value by acting as early adopters. It’s really about whether or not gaining more value now can help offset a price drop in the future. Time will tell, but many businesses are confident that it will.