The Sandbox and Decentraland: is a good moment to buy land in these games?
According to the graph on this website, price for Sandbox land and Decentraland seems to be in it’s lows. Is it a good idea to invest now or will it keep going down? Will it go up to previous heights on a future bull run?
Leaving hype and speculation aside, a logical pricing for these assets will have correlation with the revenue these can potentially generate. Investors can rent out their lands or use them to host experiences. These are some forms of converting in-game traffic into revenue.
If wee look at it in this way, we could compare it to websites: the more traffic the asset gets, the more revenue it will generate. For this reason, land located in relevant or central areas will have a higher market value.
Let’s do a basic overview of the traffic stats of both games:
- The Sandbox has 166464 land slots, and it’s largest number of active users a day was 4,5k, this is a ratio of 0,03 users per asset on The Sandbox.
- Decentraland has 90601 lands while it’s maximum daily players were 675, giving us a ratio of 0,0074 users per asset.
Now consider the following data:
- The whole internet has 200k active websites, while 4,95 billion people use the internet on a daily basis. This gives a rough ratio of 25k users per asset, and still a huge chunk of this sites (possibly most of them) doesn’t generate revenue at all.
- Mainstream MMO games such as Fortnite and Minecraft count their daily users in hundreds of thousands to millions. This makes these metaverse games look as if they have no adoption at all.
As of now the potential traffic in The Sandbox and Decentraland seems to not justify a pricing close to $2000 USD per unit. So consider acquiring LAND only if:
- You are an actual player of the games and see a lot of potential in them, and think they will get mass adoption to the levels of mainstream multiplayer online games. Have in mind that The Sandbox has been around since 2012.
- You’re a speculator and expect another bull run in the NFT gaming industry that takes the price of the assets to previous heights.
- You’re planning on monetizing the land yourself by creating an outstanding experience within the platform.
If you’re conservative with your investment portfolio, you shouldn’t consider these options at all as of today. Before anything you should ask yourself: am I an investor or am I a speculator?