Virtual real estate has been in high demand throughout the past year. Whatever the reason is for sweeping up these virtual lands, owning a piece seems like the ultimate flex in the metaverse. The Sandbox LAND is one of the most sought-after virtual properties in the market, having a market cap of 456K ETH ($1.3 billion) at the time of writing. But in reality, how much would you pay for a plot? DappRadar recently shared some tips on how to determine land worth.
Before we can value them, we need to first understand them. Basically, LANDs are virtual pieces of NFT real estate in The Sandbox. Owners can flex their creative juice in countless ways to monetize their property, rent it out, or simply stake them for passive income. LAND owners also have governance voting rights within the Sandbox community.
The Sandbox LAND Worth
Firstly, LOCATION, LOCATION, LOCATION. Within this metaverse, and also physical real estate, there will be several areas that are more sought after than the rest. This is the reason some real estate investors often make bids on terrible looking houses in great locations. Simply because, it’s worth it.
The most coveted areas are usually filled with entities you may want to be associated with, such as plots owned by large brands or areas with Sandbox-owned lands. These entities should warrant higher traffic in the future, which increases the value of the surrounding areas as well.
Next, the size. Estates in this metaverse is split into 4 categories, small, medium, large, and X-large. In general, the larger the estate, the higher the price. Small estates have a size of 3×3, while medium estates are 6×6. Large estates are 12×12, while X-large estates are 24×24. Technically, the larger the size, the more space there is to build.
XL estates are often owned by notable brands you probably know, including Ubisoft, Binance, and Warner Music Group. Large estates have owners the likes of Adidas, Care Bears, and Snoop Dogg. Republic Realm, a blockchain MMOG, purchased a piece for $4.3million from Atari, dropping jaws around the NFT community. The company has been collecting other digital land in other worlds as well.
Lastly, LAND worth is also influenced by the value of The Sandbox as a whole. Based purely on pricing, it is not as valuable as Decentraland, but it beats most of the competition. However, most people see the value in their collaboration and utility. The Sandbox has been collaborating with the best of the best in various industries, whether fashion, tech, finance, gaming, you name it.
NFT land worth may not be as straight forward as other NFTs, but the potential it brings far surpasses basic digital assets. This space is still growing and more is yet to come. Nevertheless, these factors should provide an introductory guideline to virtual property shopping for now.