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

Crypto funding large Grayscale has printed a bullish report on the Metaverse, estimating that the “market opportunity” for bringing the Metaverse to the mainstream could also be value over $1 trillion within the subsequent few years.

The November report titled “The Metaverse, Web 3.0 Virtual Cloud Economies” was authored by Grayscale Head of analysis David Grider and analysis analyst Matt Maximo. The duo explores the burgeoning sector primarily from the attitude of open Metaverse worlds backed by an “interconnected crypto-economy” reminiscent of Decentraland.

The report highlights that Metaverse platforms integrated with crypto tokens, decentralized finance (DeFi) companies reminiscent of staking and lending, NFTs, decentralized governance and decentralized cloud storage have “created a new online experience” that’s quickly attracting new users.

Analyzing “global all-time active metaverse wallets” knowledge because the begin of 2020, it discovered the person base has grown by 10X since that point to take a seat at round 50,00zero as of June 2021.

“Compared to other Web 3.0 and Web 2.0 segments, Metaverse virtual world users are still in their early innings, but if current growth rates remain on their current trajectory, this emerging segment has the potential to become mainstream in the coming years.”

The report highlights that there’s no scarcity of VCs taking a punt on the sector’s potential. According to the report, fundraising totaled $1 billion for blockchain gaming in Q3. That represented 12% of whole fundraising for your complete crypto sector within the quarter, rating it because the “top sub-sector” inside the Web and NFT class.

Market opportunity

The researchers observe a vary of key dynamics that would considerably contribute to the expansion of the Metaverse sector, together with rising common leisure money and time spent on digital hobbies, a cultural shift from premium video games to free-to-play gaming and Web improvements reminiscent of play-to-earn (P2E).

Global income from digital world gaming totaled $180 billion in 2020, with “premium spending” accounting for round $40 billion, with estimates the sector might pull in additional than $400 billion by 2025, primarily pushed by the in-game spending mannequin.

The report argues that this shift is “accelerating additional with the transition from Web closed company Metaverses to Web open crypto Metaverse networks,” because of the play-to-earn potential they signify.

“Web 3.0 Metaverse virtual worlds have benefited from rapid innovation and productivity gains. Crypto virtual worlds have created a multi-million dollar primary and secondary market for creators and asset owners by eliminating capital controls and opening their digital borders to free-market capitalism,” the report reads.

Related Metaverse and blockchain gaming altcoins rally while Bitcoin looks for support

The value of the native tokens for open Metaverse platforms reminiscent of Decentraland (MANA) and The Sandbox (SAND) have been on a tear of late, gaining 49% and 102% every to take a seat at $5.03 and $7.60 on the time of writing.

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