According to a recent analysis by Grayscale, the developing metaverse sector might be worth $1 trillion in a few years. Grayscale is a crypto investment and analytics firm.
Grayscale’s Head of Research, David Grider, and research analyst Matt Maximo prepared the analysis, titled “The Metaverse Web 3.0 Virtual Cloud Economies.” Its primary focus was on the interaction of gaming trends and lifestyle with the infrastructure possibilities of blockchains for digital worlds.
Open Web 3.0 metaverse networks have taken over the area from the private Web 2.0 metaverse. According to the research, these metaverse platforms were producing a one-of-a-kind online experience. As a result, a large number of new users joined.
In addition, the rush of new users has pushed the price of metaverse platform native tokens to skyrocket. For example, at the time of writing, the prices of Decentraland (MANA) and The Sandbox (SAND) were $5.31 and $7.51, respectively.
Similarly, the analysis discovered that the number of worldwide all-time active metaverse wallets has surged tenfold. The user base increased from around 5000 at the start of 2021 to 50,000 by June 2021.
What is Metaverse?
A metaverse is an online digital universe where a person can live and interact with different things virtually. Therefore, it requires a combination of multiple different technologies like VR, augmented reality, cloud computing, and many more. The Metaverse is already present in some form, as VRChart or as VR videogames.
The term “Metaverse” comes from a sci-fi dystopian novel from 1992 by Neal Stephenson, Snow Crash. Moreover, it serves as an inspiration for another popular novel, Ready Player One by Earnest Cline. But, the Metaverse exists outside of the sci-fi world for quite some time now. That is to say, it is not at all a new concept.
Virtual online communities are in existence since the mid-80s. AOL instant messenger and some forms of the first social media sites of the 1990s assisted in the growth of these communities. In the early 2000s, the game World of Warcraft created a lasting social scene for millions of people, and online communities have continued to pop up within and around games.
Second Life, a 2003 video game, is often described as the first Metaverse. Second Life incorporates multiple aspects of social media into a persistent VR world. Many new games like Minecraft, Active Worlds, Roblox, Fortnite, etc. represent a modern implementation of the Metaverse.
The Metaverse Industry will Go Mainstream Soon
The Metaverse industry is currently in its early stages of development. However, the direction of its rise implies that it may become mainstream in the coming years. With research indicating that funding for blockchain gaming reached $1 billion in only the third quarter – the most in the crypto industry – many venture capitalists appear to be seeing the potential as well.
In addition, the experts highlighted important drivers that might drive the sector’s expansion in the future. From greater leisure time to higher finances for digital hobbies, as well as a trend away from conventional games and toward free-to-play and play-to-earn games, the sector’s rise appears to be unstoppable.
By 2020, revenue from virtual gaming will have already reached $180 billion. With in-game spending currently around $40 billion, forecasts state that the sector will generate more than $400 billion in revenue by 2025. The majority of these are going to come through in-game purchases.
“Crypto virtual worlds have created a multi-million dollar primary and secondary market for creators and asset owners,” the report reads. Indeed, by allowing free-market capitalism to flourish on their platforms and removing entrance barriers, metaverse platforms have created a massive market for everybody.
Also read: Sandbox- The Sandstorm in The Crypto Market