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Illuvium has announced the sale of virtual land for over $72 million. The sale of this land has happened despite the bearish market sentiment in the cryptocurrency market that has persisted since the beginning of the year.
Illuvium is a Web 3 platform that has become quite popular in the play-to-earn sector. This auto-battler game is currently in the beta phase. As the Web3 sector records notable growth, Illuvium has benefited from this, and it stands among the top P2E sectors.
Illuvium virtual land sells for $72M
Illuvium recently sold virtual land for $72M. The land was sold through auctions that started on June 2 and ended on June 5. The sale of this virtual land generated 19,969 virtual land plots. Around 282 plots of land are being sold each hour.
The virtual game will feature 100,000 plots of land, and Illuvium is planning to hold more land sales in the future. This is a sign that the utility of the tokens based on the platform could increase significantly over the coming years.
The land plots on Illuvium will create fuel and elements that will support its gameplay. The plots of land slated for the auction will include different tier levels from level 1 to level 4. The levels will be ranked according to the rarity and the volume of the resources based within the game that are generated.
The owners of these pieces of land will get 5% of the in-game revenues generated from the plots. This is a significant contributor to the platform's utility and the value held when people buy the pieces of virtual land.
The virtual land on Illuvium can be purchased using Ether of sILV2. The rewards are given after users stake the ILV governance token. The sale of these pieces of land generated a reward of 4018 Ether (ETH) tokens and 239,388 sILV2 tokens. The tokens are valued at $72 million in total.
ILV currently ranks as the ninth-largest GameFi asset with a market cap of $174.2 million, according to data from CoinGecko. The token has witnessed several poor performances because of the ongoing bearish trend across the market. ILV reached an all-time high of $1911 in early December. However, the token has since dropped by 85% from these record highs, and at the time of writing, it was trading at $269.
Low gas fees during the virtual land auction
The sale of these virtual pieces of land attracted interest across the cryptocurrency market. The closing prices for the land fluctuated during the sale period, with the Tier 1 plots selling for between 0.3 ETH to 2 ETH. Tier 2 plots were sold for between 0.97 ETH to 6 ETH, Tier 3 plots were sold between 3.67 ETH to 20 ETH, while Tier 4 lands were sold between 13.6 ETH to 76 ETH.
The co-founder of Illuvium, Kieran Warwick, said that the ETH used to buy the land would be converted into ILV and then redistributed to ILV stakers. The sILV2 raised from the sale has been burned, and 2.39% of the supply has been destroyed.
The auctions were based on Immutable X, an Ethereum layer 2 scaling solution. Launching the land on these platforms minimized the gas fees paid by users. It is estimated that gas fees were reduced by 60% after using the scaling platform. The average transaction fee charged to users was around $20.
“Nearly all Ethereum NFTs sales result in wasteful bids that reward miners and cost the buyer. Gas wars should now be a thing of the past,” Warwick added.
To learn more visit our Investing in Illuvium guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.