Grayscale analysts have predicted via the firm’s latest report that the crypto metaverse ecosystem could be worth more than $1 trillion in a few years if the industry maintains its current rate of adoption.
Metaverses Leading the Web 3.0 Evolution
At a time when tech giants and Web2.0 companies such as Facebook are making plans to build their own metaverses, crypto investment giants Grayscale has predicted that the industry could surge to $1 trillion soon.
In its November 2021 report titled “The Metaverse, Web 3.0 Virtual Cloud Economies,” Grayscale’s Head of Research, David Grider and Research Analyst Matt Maximo, detailed how the world has evolved from the eras of web 1.0 and web2.0 and how blockchain-powered metaverses being created by Decentraland (MANA), Axie Infinity and others, are now occupying the frontier of the Web3.0 evolution.
“The web 2.0 mobile internet changed how, where, when, and why we used the internet. In turn, this changed the products, services, and companies we used, which changed our business models, culture, and politics – the Web 3.0 Metaverse has the potential to do the same,” wrote the researchers.
A $1 Trillion Opportunity
The analysts further noted that people are now spending a large chunk of their time daily on digital activities such as watching television, playing video games, and interacting with friends on social media platforms. And they outlined a range of important dynamics that would further fuel the growth of crypto metaverses, including social networks, non-fungible tokens, and gaming, estimating that revenue from virtual gaming worlds could grow from $180 billion in 2020 to $400 billion by 2025.
“Many gamers today spend their money and time building digital wealth within Web 2.0 closed corporate worlds. The problem is most game developers don’t let players monetize their investment and efforts. Web 3.0 open crypto metaverse networks solve this problem by eliminating the capital controls imposed on these virtual worlds by Web 2.0 platforms. This new paradigm allows users to own their digital assets as NFTs, trade them with others in the game and carry them to other digital experiences, creating a whole new free-market internet-native economy that can be monetized in the physical world.”
While play-to-earn gaming remains the number one driver of the crypto metaverse evolution, the researchers have predicted that other industries including advertising, social commerce, digital events, hardware, and more, will soon become active players in the ecosystem and this is expected to send the value of the global crypto metaverse to $1 trillion in the coming years.
At the time of filing this report the price of MANA, the native crypto of Decentraland, is up by 4.63 percent in the past 24-hours, trading around $5.19, with a market cap of $9.43 billion, according to CoinMarketCap.
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