The Metaverse is a $ 1T opportunity after users increase 10X: grayscale report


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Crypto investment giant Grayscale released a bullish report on the Metaverse, estimating that the “market opportunity” to bring the Metaverse mainstream could be worth over $ 1 trillion in the next few years.

The November report, entitled “The Metaverse, Web 3.0 Virtual Cloud Economies,” was written by Grayscale research director David Grider and research analyst Matt Maximo. The duo researches the emerging sector mainly from the perspective of open metaverse worlds, which are supported by a “networked crypto-economy” like Decentraland.

The report highlights that metaverse platforms built into crypto tokens, decentralized financial services (DeFi) such as staking and lending, NFTs, decentralized governance and decentralized cloud storage have “created a new online experience” that is rapidly attracting new users.

When analyzing data on “global all-time active metaverse wallets” since the beginning of 2020, it turned out that the user base has grown tenfold since then and in June 2021 is around 50,000.

“Compared to other Web 3.0 and Web 2.0 segments, users of the Metaverse virtual world are still in their infancy, but if current growth rates stay on their current path, this emerging segment has the potential to become To become mainstream. “

The report highlights that there is no shortage of VCs harnessing the potential of the sector. According to the report, fundraising totaled $ 1 billion for blockchain games in the third quarter. That represented 12% of total fundraising for the entire crypto sector in the quarter and was classified as the “top subsector” within the Web 3.0 and NFT categories.

Market opportunity

The researchers note a number of key dynamics that could significantly contribute to the growth of the Metaverse sector, including the growing average of free time and money being spent on digital hobbies, a cultural shift from premium gaming to free-to-play Games and Web 3.0 innovations such as play-to-earn (P2E).

Global virtual world gaming revenues totaled $ 180 billion in 2020, with premium spending amounting to approximately $ 40 billion, with the sector estimated to be more than $ 400 billion by 2025 could bring in, mainly driven by the in-game spending model.

The report argues that as the transition from closed Web 2.0 corporate metaverses to open crypto-metaverse networks in Web 3.0 accelerates this shift, “because of the game-to-earn potential associated with it.

“The virtual worlds of Web 3.0 Metaverse have benefited from rapid innovation and productivity gains. Virtual crypto worlds have created a multi-million dollar primary and secondary market for asset creators and owners by removing capital controls and opening their digital frontiers to free market capitalism, ”the report said.

Related Metaverse and blockchain gaming altcoins bounce back as Bitcoin seeks support

The price of native tokens for open Metaverse platforms like Decentraland (MANA) and The Sandbox (SAND) has risen sharply lately, rising 49% and 102% respectively, to $ 5.03 and $ 7.60 at the time of writing .