#2: Virtual Land
Coverage on digital real estate
This week’s post covers virtual land, the part of the NFT space that tends to invoke the biggest eye roll. “Why TF would I want to buy digital land!?”
Aside from speculating on the price in the hopes of a quick flip, people buy these assets because they offer utility. In most cases, this is the opportunity to build and monetize digital experiences on top of the land.
Personally, I think this model is likely to fail. If the land is scarce, then the experiences that attract people to the platform will also be scarce. This is like Twitter limiting the number of times someone can tweet. That said, I still like to keep an eye on the space as I think it could morph into something more sustainable down the line.
📈 Otherdeeds surpasses $1B in secondary volume
Otherdeeds is a 200K metaverse land collection from Yuga Labs. Each Otherdeed represents a plot of land that will be available in Otherside—a gamified metaverse platform currently underdevelopment. Collectors will be able to leverage (i.e. monetize) the natural elements contained within each plot. The floor price decreased from 2.5Ξ to 2Ξ in the past 30 days, with a slight peak of 2.7Ξ leading up to a demo of the platform on July 16th.
Yuga released the first 100K Otherdeeds in April, airdropping 30K to BAYC ecosystem NFT holders, 15K to contributors and selling 55K on the open market. The number of unique holders is currently tracking at 35K. Approximately 60% of wallets hold only one Otherdeed; 20% hold two; 7.3% hold three; and the remaining 12.7% hold four or more.
There are 15 types of traits which together determine the rarity of each Otherdeed. Roughly 8.7% of supply is listed, most of which is on LooksRare. Sell order liquidity is strongest in the 2-5Ξ range.
📉 Sandbox floor price is down 18% MoM
Sandbox is an open virtual world where players can build, own and monetize digital experiences. LANDS are NFTs that represent parcels of land in the Sandbox metaverse. Floor price has dropped 18% over the last month in line with general NFT market decline.
There are 218K LANDS, 127K of which are held by Sandbox. Along with price decreases, the number of holders has been steadily dropping from 21.5K to 19K over the past two months. A decline in unique wallets tends to signal increased conviction from a project’s holder base.
The top LAND owners are mostly Sandbox-affiliated partners or large crypto entities such as Binance, Coincheck and Whale Community.
📉 NFT Worlds floor dives 75% after Minecraft bans NFTs
NFT worlds is a gamified metaverse built on the backbone of Minecraft’s open-source ecosystem. It’s made up of a collection of interlinked “worlds” (ERC-721s). The floor price dropped 75% on July 20th after Minecraft announced a firm ban on all integration of blockchain technology within their ecosystem. The team managed to slow the sell-off by sharing their plans to rebuild the platform from the ground up.
There are 10K worlds that can be built into digital experiences such as games. Worlds can also be staked as a way to lock up supply and earn $WRLD; ~86% of the total supply is staked. The unique holder ratio is currently tracking at 0.45.
The community have built role-playing games, tower battle games and first-person shooters. Before Minecraft’s ban, each of these games featured play-to-earn mechanics to earn $WRLD or other rewards. The $WRLD token saw a similar sell-off to the ERC-721 collection, collapsing 57% on July 20th.