The crypto investment giant Grayscale has released a bullish report on metaverses, estimating that the “market opportunity” for the metaverse to be adopted may generally be valued at more than a trillion dollars in the next few years.
The November report, titled The Metaverse, Web 3.0 Virtual Cloud Economies, “is the work of Grayscale Research Chief David Grider and Research Analyst Matt Maximo.. The duo explore the burgeoning sector primarily from the perspective of open metaverse worlds backed by an “interconnected crypto economy” like Decentraland.
The report highlights that metaverse platforms embedded with cryptocurrency tokens, decentralized financial services such as staking and lending, non-fungible tokens (NFTs), decentralized governance, and decentralized cloud storage have “created a new online experience” that is quickly attracting new users.
Analyzing data from the “active metaverse wallets of all time” from the beginning of 2020, he found that the user base has multiplied by 10 since then to around 50,000 in June 2021.
“Compared to other segments of Web 3.0 and Web 2.0, the users of the virtual worlds of the Metaverse are still in their infancy, but if current growth rates continue on their current trajectory, this emerging segment has the potential to be generally adopted in the next few years. “
The report highlights that There is no shortage of venture capital investors who are betting on the potential of the sector. According to the report, fundraising amounted to $ 1 billion for blockchain games in Q3. This accounted for 12% of the total fundraising for the entire cryptocurrency sector in the quarter, making it the “top subsector” within the Web 3.0 and NFT category.
The researchers point to a number of key dynamics that could contribute significantly to the growth of the metaverse sectorsuch as the increase in average leisure time and money spent on digital hobbies, the cultural shift from paid games to free games, and Web 3.0 innovations such as play-to-earn.
Global revenue from virtual world games amounted to USD 180 billion in 2020, with a “premium spend” of about USD 40 billion, and it is estimated that the sector could earn more than USD 400 billion in 2025, mainly driven by the in-game spending model.
The report argues that this change “is being accelerated further with the transition from the closed corporate metaverses of Web 2.0 to the networks of open cryptocurrency Metaverses of Web 3.0“, due to the potential play-to-earn that they represent.
“The Metaverse virtual worlds of Web 3.0 have benefited from rapid innovation and increased productivity. The virtual worlds of cryptocurrencies have created a multi-billion dollar primary and secondary market for asset creators and owners by removing capital controls and opening their digital borders to free market capitalism, “the report says.
The prices of native tokens on open metaverse platforms such as Decentraland (MANA) and The Sandbox (SAND) have been skyrocketing lately, gaining 49% and 102% each to stand at $ 5.03 and $ 7.60, respectively, at the time of writing.