After an increase of 20.3% in the last 24 hours, 314.7% in a month and 4336.6% in a year, there is no denying that Decentraland (MANA) has a high probability of extension in a bull run is located. This platform is an extension of the NFT madness and takes a similar approach, but for digital real estate.
Based on the Ethereum blockchain, Decentraland allows users to buy, trade and create apps or digital packages. By doing this, they acquire ownership of a digital space according to the non-fungible ERC-721 standard acquired with MANA, a token that uses the ERC-20 standard.
The package prices in Decentraland have risen massively in the last year. Accelerated by the coincidence of two factors – restriction due to the Covid-19 pandemic and introduction of new generations – the price of a virtual property on the platform has tripled in less than 12 months.
To capitalize on the expansion in this sector, real estate company Republic Real Estate will launch the “Realm” fund to convert properties on Decentraland and similar platforms into hotels, advertising space and more. The head of this company, Janine Yorio, compared current Decentraland investors to landowners in 18th century Manhattan. Yorio said:
There is massive growth ahead of us and now it is time to move down to the ground floor (…). Properties in the real world are very uncertain right now. Real estate prices are at an all-time high. The offices are now empty, the hotels empty. This feels isolated from many of these real risks.
How can you make money with Decentraland?
Regarding the various ways investors can benefit from these digital real estate, Yorio said in an interview that Decentraland could be part of a future billion dollar industry. The director of the republic added:
Businesses are starting to advertise them (users) wherever they are. The Virtual Real status is the way for these companies to buy the land, the pixels, the parcels in these games. Put up ads, set up stores, place communities there where they can market directly to customers.
In short, investors can benefit from taking advantage of the rise in prices due to the demand for these digital properties that rent packages or sell advertising space. Yorio added:
Land in Decentraland sold for about $ 500 a parcel in 2019, and today the same parcels sell for about $ 7,800. From the point of view of capital growth, we see a return of more than 10 times in less than two years (…). There really is no end to the things you can do.
At the time of writing, MANA is trading at $ 1.06. In the 24-hour chart, the token shows important gains with 20.6%, as mentioned above. MANA hit a tipping point when it reclaimed the $ 1.00 area immediately after investment firm Grayscale launched its trust based on that token.