The rapid growth of Metaverse has created new directions on how to apply Blockchain technology in many economic sectors. 2021 is an explosive year for Metaverse and NFT, so it’s not unusual for Land NFT to become a hot topic. Famous NFT land projects include Decentraland, The Sandbox, and Axie Infinity. The idea of spending millions on virtual land that doesn’t exist in reality sounds “impossible,” but many investors still bet big on this market. So why are more and more people investing in Land NFT?
1. What is Land NFT in Metaverse?
Land NFT is a digital land that can be owned on the Metaverse platform. Such land is sold using NFT technology so that its records can be publicly verified, thus ensuring transparency. NFT is well suited for representing land ownership because each NFT asset is unique and quickly proves digital ownership.
Investors can buy these land lots by selling the land directly from the projector on the secondary market.
2. What factors affect the price of Land NFT?
Existing as an NFT asset, the price of Land NFT is also affected by many objective factors. The three main factors are:
Compared with conventional NFT types, Land NFT is used for more purposes. The utility variety of Land NFTs depends on the Metaverse platform that issues them. For example, in a digital world like Bizverse, users can customize and create on their land. At the same time, if the user’s land is located in a central area or has many visitors, they may charge an advertising fee.
Land NFTs issued by popular and reputable platforms like Decentraland, The Sandbox, Axie Infinity tend to have higher prices. This is explained by the supply and demand of the market because, of course, users are often more interested in products of reputable platforms than small projects.
As Land NFT gained more and more interest and popularity, it led to increasing speculation. For example, real estate company NFT Metaverse Group spent about $2.43 million in November 2021 to purchase a 116-acre parcel of land in Decentraland. Speculation is a dominant factor in the price of Land NFT.
3. What can Land NFT be used for?
Land NFT can be used for the following purposes:
- Advertising: If a user’s plot is located in an area or location that is popular and attracts many visitors, they may charge for advertising space.
- Socialize: Host events on your digital land, including concerts, conferences, and community get-togethers.
- Gaming: NFT land can be used in NFT video games. For example, land in Axie Infinity can provide additional resources, tokens, and crafting materials.
- Work: Land explored with 3D avatars that can be used as a virtual office space or to provide digital services.
4. Why do many people invest large amounts of money in Land NFT?
In November 2021, an Axie Infinity gamer just sold his virtual land in the game for $ 2.5 million. This is one of the most expensive virtual lands ever successfully put up for sale in the cryptocurrency market. The question is what is the value of Land NFT that many people are willing to spend large amounts of money to own instead of buying real land.
- Asset Creation: Investors spend millions on virtual lands because they believe the future of humanity is digital. These companies expect millions of people to flock to virtual real estate and invest in virtual land for sale while expecting a potential return on investment.
- Generate income: Land NFT is virtual, but it still has the characteristics of real land. Like in real life, users can rent virtual land in the metaverse, organize parties and special events on it, and advertise on their virtual land. So basically, users can earn some income, certain benefits if they buy land in a popular virtual locale like Fashion District, where there are many celebrities and quite an active population in the metaverse.
- For an experience: A virtual land is nothing more than a data block unless the user builds something on it. The possibilities are endless. Some users are buying virtual land in the metaverse for this exact reason. They are building unique customer experiences on their virtual land.
The potential of Land NFT is undeniable. In fact, many investors have spent a huge amount of money to own land plots on Metaverse. When Land NFT price is low at this infancy stage, should we invest in this market?