An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.
The growth trajectory of the metaverse sector suggests that it could become mainstream in the years ahead.
A new report by crypto investment firm Grayscale has revealed that the growing metaverse sector could be worth $1 trillion in a few years.
The bullish report tagged “The Metaverse Web 3.0 Virtual Cloud Economies” was written by Head of Research at Grayscale, David Grider, and research analyst, Matt Maximo. Its core consideration was the interplay of gaming trends and lifestyle with the infrastructural potential of blockchains for digital worlds.
From private Web 2.0 metaverses, open Web 3.0 metaverse networks have taken over the space. According to the report, these metaverse platforms were creating a unique online experience. Consequently, many more new users were jumping on board.
Also, the influx of new users has caused the price of native tokens of the metaverse platforms to spike. At the time of writing, for example, the price of Decentraland (MANA) and The Sandbox (SAND) were $5.31 and $7.51 respectively.
Likewise, the report also found out that the number of global all-time active metaverse wallets had increased 10x. From just about 5000 at the beginning of 2021, the user base grew to 50,000 by June 2021.
Metaverse Sector to Become Mainstream Soon
The metaverse sector is still on the fringes of adoption. However, its growth trajectory suggests that it could become mainstream in the years ahead. With the report suggesting that fundraising for blockchain gaming in just Q3 was $1 billion – the highest in the crypto sector – many venture capitalists seem to be seeing the potential too.
Beyond this, the researchers identified major forces that could continue to drive the sector’s growth. From increased leisure time to increased funds on digital hobbies, and a shift from traditional games to free-to-play games and play-to-earn games, the sector’s growth seems inevitable.
Already, revenue from virtual gaming was at $180 billion in 2020. With in-game spending now at $40 billion, projections suggest the sector can earn over $400 billion in revenue by 2025. Most of these are expected to come from in-game spending.
“Crypto virtual worlds have created a multi-million dollar primary and secondary market for creators and asset owners,” the report reads. Indeed, by opening up the platforms to free-market capitalism, and removing entry limits, metaverse platforms have created a major market for all.