550 ETH too much

On the 24th of November 2021, Axie Infinity tweeted that a virtual land slot sold for a whopping 550ETH! Equating to $2.3 million!

The game developers claim this is the largest ever sum paid out for virtual real estate. This plot of land was from the monster-battle fantasy NFTs.

So, let’s talk a little more on Axies. If you aren’t already aware, Axies are creatures that users control, their role is to complete daily tasks, battle enemies, and even duel with other players. These Axies are in fact NFTs, they can be freely brought and sold, or they can be bred (minted).

This particular plot of land was located on the Axies inhabited game world Lunacia, a 301 x 301 square grid. This world is divided into sections (Terra’s), these represent tokenized plots of land. Different plots are classified by their rarity, the plot of land that sold for 550 ETH was in the Genesis classification (the rarest form of virtual real estate within Axie Infinity’s ecosystem). So rare that only 220 out of 90,610 land slots have the classification of Genesis.

Within the world of Axie Infinity, Lunaria is terrorised by Monsters (Chimeras). Players earn Smooth Love Potions (SLPs) by defeating these monsters. SLP can then be sold for cash at a cryptocurrency exchange. The rare Genesis land is located in the centre of Lunaria, this is also home to the rare Chimera raid bosses, making it difficult to access.

So, is 550ETH too much to pay for virtual land? This is often the question raised by critics. While it’s true that there is no tangible element to ‘virtual land’ which raises the obvious question of if there’s even any value in it to begin with, but some individuals have still made playing Axie Infinity a full-time job!

How? Well in certain locations, especially in developing nations, the amount of SLPs that can be earned each day in the game surpass their respective country’s minimum wage, meaning upfront investments within the game make economic sense from their perspective.

Either way, this virtual land sale is an eyewatering transaction, and I’m sure it’s not the last we’ll see of these kinds of numbers as the Metaverse and NFTs themselves continue to gain more and more popularity…