What Happens in Vegas…Maybe Happens in Decentraland
Recently, we covered how $/SQF prices in Decentraland compared to that of land in actual U.S. States. In this byt3, we’ll take a closer look at how the virtual real estate market is shaping up in Decentraland using current land auction price data and rates. Long story short, here it is:
For data’s sake, we had to remove outliers on the top end that basically consisted of completely unrealistic auction prices such as this joker. But even after removing those outliers, there is some clear interest in the “north” where the collective quadrant values are ~10X above that of all the parcels in the South most likely due to the various attractions such as Vegas City. Speaking of Vegas City, there are 80 properties in Quadrant I alone that have a $/SQF amount (parcel price/1076 SQF) that exceed the actual industrial median $/SQF of Las Vegas industrial property in 2016 of $118. Reeling back into reality a bit though and we see the median $/SQF in Quadrant I is much less at ~$15 as of the time of this writing (far from the mean of $139). It’s also worth noting that the floor prices are actually the most similar across all the quadrants while the ceiling prices vary dramatically. It’s clear that this virtual real estate market is still in its infancy (atop an infant crypto market) with some pretty staggering price ranges and the true value remains to be seen. But the open-ended possibilities about what this “world” could become cannot be ruled out so long as it is equally matched with strong execution.
Disclaimer: I am not a financial advisor, this is not financial advice. These are merely my observations and insights about a market trend.