  The rapid rise of cryptocurrency prices led to concerns (e.g. the Financial
Stability Board) that this wealth accumulation could detrimentally spill over
into other parts of the economy, but evidence is limited. We exploit the
tendency for metaverses to issue their own cryptocurrencies along with
non-fungible tokens (NFTs) representing virtual real estate ownership (LAND) to
provide evidence of the wealth effect. Cryptocurrency prices and their
corresponding real estate prices are highly correlated (more than 0.96), and
cryptocurrency prices Granger cause LAND prices. This metaverse bubble
reminisces the 1920s American real estate bubble that preceded the 1929 stock
market crash.
