Virtual lands, as we've seen, take the same approach as the real world. Because their supply is restricted, they tend to appreciate in value.
There are only 166,464 lots available in The Sandbox, each measuring 96 × 96m2. In 2021, the SAND, the native token, increased approximately 14,000% to $5.15.
Similarly, the Decentraland metaverse, which is administered by a decentralized autonomous organization (DAO), contains 90,601 pieces of land, but only roughly 44,000 of these are available for individual purchase and sale.
Each Decentraland lot is a non-fungible token (NFT) with a surface area of 16 x 16m2. MANA, the platform's native cryptocurrency, is used to price the land. In 2021, the price of MANA increased by more than 4,300%, reaching $3.41.
The immutability and visible scarcity given by NFTs undoubtedly contributed to virtual real estate's appreciation. However, the underlying cause for the current surge in digital land prices extends beyond that.
What factors have had a significant impact on the internet real estate market? Why has the cost of some plots increased by 14,000%? Because virtual worlds will evolve into the metaverse; specifically, a fully functional metaverse.
This has the ability to significantly change how individuals connect with and transcend the digital world, combining it with the actual world.