Valuation and Volatility of Virtual Properties in Metaverse: Exploring New Market Opportunities and Speculative Dynamics Based on Decentraland
Existing reality has been repeatedly subjected to multifaceted and multidimensional analyses. However, alongside it, a virtual reality exists, populated with virtual art, objects in games, cyber-pets, and virtual properties, collectively worth billions of real dollars. This virtual reality is associ...
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| Format: | Article |
| Language: | English |
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İzmir Akademi Derneği
2025-06-01
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| Series: | Journal of Metaverse |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/en/download/article-file/4382196 |
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| author | Dawid Narowski Celso Santos Lukasz Borowski Michal Apollo Kamil Maciuk |
| author_facet | Dawid Narowski Celso Santos Lukasz Borowski Michal Apollo Kamil Maciuk |
| author_sort | Dawid Narowski |
| collection | DOAJ |
| description | Existing reality has been repeatedly subjected to multifaceted and multidimensional analyses. However, alongside it, a virtual reality exists, populated with virtual art, objects in games, cyber-pets, and virtual properties, collectively worth billions of real dollars. This virtual reality is associated with the concept of the 'metaverse' (a term derived from 'meta' and 'universe'), signifying a space that facilitates life in a virtual world. This space has a quantifiable value and is traded on specially designed platforms. The study focuses on the largest of these platforms, Decentraland, where users can purchase virtual properties using a cryptocurrency called MANA. Based on an analysis of 207 property transactions, the study examines whether these properties can be appraised using typical approaches applicable to “real” properties. It explores the relationship between spatial attributes, property price, and price volatility over time, calculating correlation coefficients for this purpose. Additionally, the study investigates the number of property sales, including multiple sales, and the proportion of properties with ITEMs on them, determining the correlation coefficients between price and parcel attributes. This study is the first to accomplish what researchers in the real estate market have long been doing. The results distinctly show that the virtual real estate market is governed by different factors compared to the traditional market, with property price and location remaining as two crucial aspects in the decision-making process for purchasing a property. |
| format | Article |
| id | doaj-art-a3e27fb4b48b42b19d22007a1d25dd24 |
| institution | Matheson Library |
| issn | 2792-0232 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | İzmir Akademi Derneği |
| record_format | Article |
| series | Journal of Metaverse |
| spelling | doaj-art-a3e27fb4b48b42b19d22007a1d25dd242025-07-07T03:28:07Zengİzmir Akademi DerneğiJournal of Metaverse2792-02322025-06-015112410.57019/jmv.15887622220Valuation and Volatility of Virtual Properties in Metaverse: Exploring New Market Opportunities and Speculative Dynamics Based on DecentralandDawid Narowski0https://orcid.org/0009-0005-5056-1441Celso Santos1https://orcid.org/0000-0001-7927-9718Lukasz Borowski2https://orcid.org/0000-0003-3766-0726Michal Apollo3https://orcid.org/0000-0002-7777-5176Kamil Maciuk4https://orcid.org/0000-0001-5514-8510AGH University of KrakowFederal University of ParaíbaUniversity of the National Education CommissionUniwersytet Śląski w KatowicachAGH University of Science and TechnologyExisting reality has been repeatedly subjected to multifaceted and multidimensional analyses. However, alongside it, a virtual reality exists, populated with virtual art, objects in games, cyber-pets, and virtual properties, collectively worth billions of real dollars. This virtual reality is associated with the concept of the 'metaverse' (a term derived from 'meta' and 'universe'), signifying a space that facilitates life in a virtual world. This space has a quantifiable value and is traded on specially designed platforms. The study focuses on the largest of these platforms, Decentraland, where users can purchase virtual properties using a cryptocurrency called MANA. Based on an analysis of 207 property transactions, the study examines whether these properties can be appraised using typical approaches applicable to “real” properties. It explores the relationship between spatial attributes, property price, and price volatility over time, calculating correlation coefficients for this purpose. Additionally, the study investigates the number of property sales, including multiple sales, and the proportion of properties with ITEMs on them, determining the correlation coefficients between price and parcel attributes. This study is the first to accomplish what researchers in the real estate market have long been doing. The results distinctly show that the virtual real estate market is governed by different factors compared to the traditional market, with property price and location remaining as two crucial aspects in the decision-making process for purchasing a property.https://dergipark.org.tr/en/download/article-file/4382196metaversevirtual real estatedecentralandparcelreal estatereal estate valuationvirtual realityblockchainnft |
| spellingShingle | Dawid Narowski Celso Santos Lukasz Borowski Michal Apollo Kamil Maciuk Valuation and Volatility of Virtual Properties in Metaverse: Exploring New Market Opportunities and Speculative Dynamics Based on Decentraland Journal of Metaverse metaverse virtual real estate decentraland parcel real estate real estate valuation virtual reality blockchain nft |
| title | Valuation and Volatility of Virtual Properties in Metaverse: Exploring New Market Opportunities and Speculative Dynamics Based on Decentraland |
| title_full | Valuation and Volatility of Virtual Properties in Metaverse: Exploring New Market Opportunities and Speculative Dynamics Based on Decentraland |
| title_fullStr | Valuation and Volatility of Virtual Properties in Metaverse: Exploring New Market Opportunities and Speculative Dynamics Based on Decentraland |
| title_full_unstemmed | Valuation and Volatility of Virtual Properties in Metaverse: Exploring New Market Opportunities and Speculative Dynamics Based on Decentraland |
| title_short | Valuation and Volatility of Virtual Properties in Metaverse: Exploring New Market Opportunities and Speculative Dynamics Based on Decentraland |
| title_sort | valuation and volatility of virtual properties in metaverse exploring new market opportunities and speculative dynamics based on decentraland |
| topic | metaverse virtual real estate decentraland parcel real estate real estate valuation virtual reality blockchain nft |
| url | https://dergipark.org.tr/en/download/article-file/4382196 |
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