Decentraland, the Metaverse platform built on the Ethereum blockchain, will expand its stake in the market by hosting its first fashion week in March 2022 as the business of virtual clothes rapidly moves up. Users will be able to explore fashion in a virtual environment and purchase outfits for their online avatars during the four-day event, which will include catwalk presentations, pop-up stores, and afterparties.

Decentraland is teaming up with UNXD, a luxury marketplace built on the Polygon blockchain network. In September, UNXD worked with Italian haute couture label Dolce & Gabbana to launch its NFT collection, Collezione Genesi, which fetched approximately $5.65 million in a sale.

"Have your collections ready!" Decentraland urged in a Sunday post on Twitter calling on designers, brands, and fashionistas to have their virtual collections ready to show in the metaverse.

As fashion brands such as Dolce & Gabbana, Gucci, Balenciaga, Louis Vuitton and Ralph Lauren strive to enter the metaverse, virtual fashion may become a highly competitive market.

According to BBC, Digital clothing from Ralph Lauren and Gucci have been featured on avatars through separate partnerships with avatar app Zepeto. And in September, the luxury fashion house Balenciaga collaborated with Fortnite to release a limited-edition capsule of four characters for its game "Afterworld."