Decentraland (MANA) Marketplace Can Be A Game Changer For VR Gamaing
Ethereum based decentralized virtual reality platform Decentraland is taking big steps within the cryptocurrency sector as an ambitious blockchain project.
Estimates put the Virtual Reality industry’s growth rate at 40 percent annually, an incentive that has given the Decentraland team the drive to turn the project into a leading player on the global VR stage.
And that seems to have happened as shown in a recent report by The Block and historical data on non-fungible tokens that shows that users are paying big bucks to live in the virtual world.
According to NonFungible.com, $23.5 million in MANA was spent between January and October 2018, with nearly 39,000 Decentraland transactions recorded.
The data also shows that the most active month in the crypto’s economy was September, with 1,110 transactions recorded and a total of nearly $1.5M worth of the native token MANA spent.
Quite interestingly, it also reveals that one single parcel of LAND exchanged hands at a record high $175,000. On average, users paid about $602 for a parcel of LAND. The median price for a parcel is $164, with users free to develop their plots as they wish.
These stats suggest that Decentraland has experienced increased activity on LAND in the last eight months, and could be set for another spike.
What’s making Decentraland popular?
Think of Decentraland as a blockchain-based VR version of the popular game Second Life. Just like on Second Life, Decentraland players can purchase land, build virtual homes, and engage their imagination.
On Decentraland owners can “start a business, visit a casino, watch live music, shop with friends, and so much more- all within a decentralized virtual world.”
Unlike Second Life, Decentraland uses the immutability of blockchain to tackle the core problem of ownership- an issue that permeates life in the digital space.
The fact that there is “real ownership” of property on the crypto platform has contributed to the popularity of the VR project.
As is with most other dealings within the digital world, ownership has proven a thorny issue, an aspect solved effectively using Decentraland’s non-fungible crypto token LAND.
Users utilize the MANA token to purchase parcels of land and then go on to take full control and legal ownership. All transactions and records occur on the Ethereum blockchain, a tamperproof network that safeguards the user’s property.
And users can sell these properties or offer services, earning from them.
Decentraland’s economic activity
As mentioned earlier, users have spent over $23.5 million worth of MANA on Decentraland’s LAND.
The platform witnessed increased activity in the days after it released its Decentraland Marketplace at in March. It is possible the heightened economic activity was a result of LAND owners or prospective buyers being able to trade their assets.
The chart below by The Block shows that activity then gradually tapered off, with August recording the least economic activity. However, the activities picked up again in September to reach new highs.
It is clear that economic activity ration hit its highest number in September. Although there was no obvious increase in price or in active MANA addresses for October, charting the amount of MANA spent on LAND against active addresses reveals an interesting scenario.
The chart shows that only a few of the addresses- about 200 in total- were responsible for the uptick in LAND activity in September.
Interestingly, one address accounted for more than 36 percent of all the economic activity for the month of September. The said address is shown to have transacted 312 times, and spend about $555k in MANA to purchase LAND.
The possible explanation here is that there could be a large buyer who bought LAND on Decentraland.
MANA is an ERC-20 token tradable on several exchanges, including Binance that accounts for over 25 percent of its daily trading volume. Users spend MANA when buying empty land parcels and goods or services offered by other users.
It could be that as the virtual world grows, and the more scarce LAND becomes the higher prices users may have to pay.