NFT market-cap rose to $18bn in November driven by meta-lands

By Raffaele Redi

Virtual land NFTs market-cap reached $4.6bn in November as collectors shift their focus

Cryptocurrency game Decentraland being played on a laptop                                 
The Fashion Street Estate in Decentraland was recently sold for $2.42m – Photo: Alamy
                                

The NFT market cap for the top 100 NFT collections across all protocols, Ethereum, Flow, BSC, Solana and WAX, stood at $18bn in November 2021, up 6.6% from the record set in October, according to crypto industry analysts DappRadar.

However, the collectables market is undergoing a cooldown phase, with the majority of NFT collections affected. Bored Ape Yacht Club (BAYC), on the other hand, has witnessed growth propelled by several contracts with major brands and adoption by celebrities.

In November, NFTs generated $3.76bn in trading volume, a 15% reduction on October.

“The decrease comes despite 4.5 million unique traders in November, which is 9% higher than the last month,” explained DappRadar.

On the blockchain side, Ethereum and BSC had decreased NFT trading volumes, of 28% and 61% respectively. Conversely, there were large NFT trading volume increases for Solana (211%) and WAX (108%) month-over-month.

Virtual lands value rose to $4.6bn

The NFT market-cap increase was driven by virtual land NFTs as their capitalisation on the market reached $4.6bn in November – effectively a two-fold increase (228%) since the end of October due to increased demand.

DappRadar recorded 27,600 unique traders involved in land transactions, a rise of 145% on the month prior. Furthermore, virtual real estate dapps resulted in $228m in trading volume in November, a huge 688% increase over the month.

In November, DappRadar noted that virtual lands scored two of the top five NFT sales. Fashion Street Estate in Decentraland was sold for MANA618,000 ($2.42m), while an Axie Infinity Genesis Plot was sold for ETH550 or $2.33m.

“For digital parcels, owners will be able to build any type of property, host live events, assemble NFT art collections, or simply rent them for others to monetise their projects,” said DappRadar analysts. “Virtual lands will enable a new type of digital economy and even a new virtual community. The metaverse is just getting started.”

Record high for metaverse-based cryptos

Cryptocurrencies backing virtual worlds and metaverse-related projects, including several play-to-earn dapps, saw impressive gains during November, thus increasing the value of the lands on the respective NFT digital maps or meta-lands.

Data showed that the Sandbox token (SAND) reached an all-time high of $8.40, increasing the price 605% since 30 October. The price of MANA, Decentraland’s token, rose by 277% in the same period. CUBE, the native utility token from Somnium Space, rose 151%.

DappRadar suggests the surge is “not specific to virtual real estate dapps”. The company added: “GALA, the utility and governance token of Gala Games, saw its price increase 790% from 30 October. At the same time, the price of ILV, another prominent play-to-earn based token, surged 90% in the same time frame.”

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