Metaverse funding soared in the first quarter of 2023, reaching a record high of $502 million. Digital land sales reached a trading volume of $311 million, more than 275% of land sales before the Terra LUNA crash in May 2022. Investors are looking closer at the top-performing dApps contributing to this unprecedented growth.

Metaverse funding top performers

The past couple of years has seen a surge in investment for metaverse projects. In 2021, the industry received a staggering $3.7 billion in investments and a total of $7.6 billion by the end of 2022. Q1 of 2023 shows no slowing down the upward trajectory, with a quarterly record of $502 million. Below are the top five performing virtual worlds ranked greatest to least by trading volume. 

1. Otherdeed for Otherside

The pack leader, Otherdeed for Otherside, saw the highest trading volume in Q1 with a trading volume of $222 million – a 237% rise from the last quarter. Land sales stood at 65,399, up 138% from Q4 2022 – the highest sales ever recorded.

The Otherdeed dApp has been gaining popularity in the virtual world market due to its decentralized platform where users can buy, sell, and trade digital land as NFTs. What sets Otherdeed apart from other metaverses is its community-driven development. 

The platform encourages users to create content through rewards and allows them to participate in its growth and development. The dApp also offers a variety of chat rooms, games, and events where users can create content and socialize virtually.

2. MG Land

Generating almost $60 million in trading volume with a sales count of just over 45,000, MG Land quickly became a top performer in Q1. Its virtual world allows users to build decentralized space with their domain name. The platform supports social interaction and allows NFT holders to play games and engage in various activities with other users.

3. Createra Genesis

With a trading volume of nearly $14 million and 6,308 land sales registered, Createra Genesis is a creator-oriented metaverse powered by its user-generated content (UGI) metaverse engine. UGI enables creators to create and distribute their own content throughout the virtual world. Focused on the Gen-Z market, Createra Genesis received $10 million from a16z in Series A seed funding in January. 

4. The Sandbox

The Sandbox reached $3.5 million in trading volume in Q1 with a sales count of 7,338, a decrease of 37% and 73%, respectively. Despite the quarter’s downturns, by February, the platform inked partnerships with Hava Play, GCEX, and other brands.

The Sandbox also recently announced an expansion into the German market by acquiring game development studio Sviper. Japan’s leading animation company, TOEI ANIMATION, has also decided to enter The Sandbox metaverse with its digital products.

5. Axie Infinity

Perhaps the most well-known metaverse, Axie Infinity generated $2.5 million – a 15% downturn – in trading volume in Q1. Axie Infinity suffered several hacks last year but nonetheless achieved the fifth top-performing metaverse in Q1 2023. Despite setbacks, Axie Infinity was among the top 10 in land sales, with one sale equalling 105 ETH ($150,452).

Significant investments supported

The investment numbers for Q1 2023 are unprecedented for a digital realm barely understood by most people. Having secured the highest metaverse funding ever, ancillary projects contributing to the virtual reality experience are also significant, securing 32% of the $502 million raised capital.

The common thread among the top five projects could be summed up in the community experience of the metaverse. In these virtual worlds, users want to interact with each other and build unique communities. Investors should focus on what meets the community's demand and enhance those experiences.