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Decentraland has seen unprecedented growth since its inception in 2017. The report below provided by Skyvest Capital takes a look at various segments and how the Decentraland real estate market has performed in 2021.
Overall Performance
The coin alone has appreciated approximately 12,000% since its ICO in late 2017. The token gained significant traction overnight when Facebook announced its rebranding to Meta. The rebranding solidified the metaverse industry as a sector on the verge of massive growth. The coin reached an all-time-high of $5.85 cents and currently fluctuates between $2 and $3.
Land Sales
Decentaland saw an unpreceded boom in land sales volume in 2021. This is largely due to MANA’s appreciation over the last 3 years. The price of virtual real estate appreciates with the value of the cryptocurrency. Virtual land prices do not adjust based on the USD value. Virtual land prices are listed in MANA prices. As MANA goes up, the listings do not adjust to the previous USD value.
As a result, land prices significantly increase when the crypto currency appreciates. Specific land values can demand either discounted or premium pricing. Pricing depends on a variety of factors including location, size, foot traffic and road access. As displayed in the graph below, virtual real estate volume skyrocketed in the 4th quarter due to Meta’s announcement. Virtual real estate transaction volume increased by about 1,900% from 2020 to 2021.
Total Land Transactions
The graph below demonstrates the number of total land transactions between 2018 and 2021. The total number of transactions includes parcels and estates. An estate is two or more joined parcels. The number of transactions has increased significantly over the four-year time period. Transactions increased 65% between 2018 and 2019.
During the following year, transactions decreased by 15%. 2021 was Decentraland’s breakout year. The platform’s transaction volume increased by 90% totaling 3,939 transactions. The platform saw a 168% increase in transactions between 2018 and 2021.
Parcel vs. Estate Transactions
The number of parcel transactions heavily outweigh the number of estate transactions per the bar graph below. There are far fewer estates for sale than parcels. Large estates are sold at a 30% premium for their lack of inventory and seldom trading.
Between 2018 and 2020, parcel transactions remained between 1,000 and 2,000. In 2021, parcel transactions increased 179%. 2021, Estate sales held a similar trend. Between 2018 and 2021, estate transactions increased 116% from 274 to 592.
Average Parcel Price
Between 2018 and 2020, the average price per parcel stayed around $1,000. In 2021, the average price per parcel skyrocketed approximately 900% to about $10,000. In 2018, the average estate price was about $8,000 compared to about $4,000 in 2019 and 2020.
In 2021, the average price per estate increased by 1,112%. Estates appreciate at a higher rate than parcels. Large estates demand a premium price often north of $20,000 per parcel in today’s market.
Active Buyers & Active Sellers
Active buyers, active sellers and total wallets are metrics to determine the supply and demand of virtual real estate. An active buyer and seller are a wallet that is connected to the land marketplace and is actively either buying or selling a parcel or estate. Based on the graph below, there are significantly more buyers than sellers in the market during any year.
Between 2018 and 2021, active buyers increased 455% from 435 to 2,416. Active sellers increased 196% from 313 to 925. Total wallets are the total amount of wallets who own Decentraland land.
The total wallets are an indication of user growth and asset diversification. More wallets indicate a growing investor base for virtual real estate. In the graph below, the total wallets trend is exponentially increasing with a clear inflection point during the Meta announcement.
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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.
Jake is a virtual real estate broker creating a marketplace for buying and selling land in metaverses.
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