Although things are starting to look up a bit across investment markets, it is clear that the crypto winter has not yet thawed enough to put away our snow boots. However, there are signs of thawing and they point to the end of snow and ice – eventually.
There are still many opportunities to buy the dip in crypto assets such as non-fungible tokens (NFTs), including metaverse real estate. Virtual real estate, unlike many other NFT assets, has utility far beyond its sticker price. However, who doesn’t want to score a deal?
Here are a few reasons to buy the dip in the metaverse while you can.
1. Despite rumors to the contrary, virtual real estate still has significant value
While it’s true that average virtual land prices have been pretty depressed since around March, this single data point doesn’t really tell the whole story. The percentage of properties for sale in Decentraland (MANA 4.09%) and The Sandbox (SAND) have fallen to serious lows since then, with sales in Decentraland hitting 0.97% in July, and those in The Sandbox falling to 1.01% in June.
Decentraland and The Sandbox have both seen a similar drop in properties for sale, indicating that speculators may have left the platforms for the time being, as the money up for grabs is no longer quick and easy. easy. There are simply very few properties available for sale at the moment, as more owners seem to be holding on to their real estate illusion. See the article : Real estate matters: 28.6.2022. But despite that, some properties still bring in more than their initial sale prices.
For example, The Sandbox LAND 152034 originally sold on July 22, 2021 for $2,290.93, and recently resold on July 14, 2022 for $5,540.70, an increase of nearly 142% from the initial sale price. At Decentraland, EST 3723 recently sold for approximately $82,391, a significant increase from its January 24, 2021 starting price of just over $23,000.
2. Buying cheap metaverse real estate means significantly lower input costs for a metaverse business
Whether you’re looking to buy metaverse real estate as a marketing tool for an existing company, or as a larger investment in a metaverse real estate rental portfolio, spending less money on that property means significant input costs lower for your project. To see also : This Week on Crypto Twitter: Wikipedia Accused of Playing Politics, Coinbase-Bored Ape Collab Widely Booed. That lower long-term investment can make your marketing costs much more affordable, or your rental units can return even more dramatically than if you had bought in December.
In a recent interview with Fast Company, Sam Huber, owner of Admix, a virtual real estate developer and landlord, explained that the properties his company had custom-designed and leased back to brands had been bringing in up to $60,000 per month per property, with some returns as high as 70%.
Just like real-world real estate, rental rates are based on the market, not on the price you’ve paid for the real estate. Paying less today means more money in your pocket each month, and more equity in the long run.
Despite crypto winter, metaverse real estate interest is still strong
The metaverse is still a place that people are completely fascinated by and are interested in investing their time and money into. This has proven true across a variety of new projects, including Arallside (APE Bored Ape Yacht Club), which continues to see strong sales. See the article : A husband and wife team have been sentenced for wire fraud. For example, Otherside had 4,706 sales, worth over $30 million, for the 30-day period ending July 27, 2022.
The fact that new projects from brands like Keurig Dr. Pepper’s (KDP 0.10%) Snapple and Paramount Global’s (PARA -4.15%) CBS still appear in the metaverse regularly highlighting money that continues to pour into this new area of technology. As the metaverse continues to grow, there is a great deal of long-term potential for virtual real estate investors.
Kristi Waterworth has positions at ApeCoin, Decentraland, and Sandbox. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Kristi Waterworth has positions at ApeCoin, Decentraland, and Sandbox. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
