Metaverse is $ 1T dollar opportunity after user count increased 10-fold: grayscale report


Crypto investing giant Grayscale released a bullish report on the Metaverse, estimating that the “market opportunity” to bring the Metaverse to the general public could be worth more than $ 1,000 billion over the next several years.

The November report titled “The Metaverse, Web 3.0 Virtual Cloud Economies” was written by Grayscale Research Leader David Grider and Research Analyst Matt Maximo. The duo explore the burgeoning sector primarily from the perspective of open metaverse worlds supported by an “interconnected crypto-economy” such as Decentraland.

The report highlights that Metaverse platforms integrated with crypto tokens, decentralized finance (DeFi) services such as staking and lending, NFTs, decentralized governance and decentralized cloud storage have “created a new online experience.” which quickly attracts new users.

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Analyzing data from “all-time global active metaverse portfolios” since early 2020, he found that the user base had grown tenfold since then to around 50,000 by June 2021.

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

The report emphasizes that there is no shortage of VCs who take advantage of the potential of the sector. According to the report, fundraising totaled $ 1 billion for blockchain games in the third quarter. This represented 12% of total fundraising for the entire crypto industry in the quarter, ranking it as the “top sub-sector” in the Web 3.0 and NFT category.

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Market opportunity

The researchers note a range of key dynamics that could contribute significantly to the growth of the Metaverse industry, including an increase in average leisure time and money spent on digital entertainment, a cultural shift from premium games to free games and Web 3.0 innovations such as like play to win (P2E).

Global virtual-world gaming revenue totaled $ 180 billion in 2020, with ‘premium spending’ amounting to around $ 40 billion, with estimates the industry could bring in over $ 400 billion by 2025, mainly thanks to the in-game spending model.

The report claims that this shift “is accelerating further with the transition from closed Web 2.0 enterprise metaverses to Web 3.0 open crypto metaverse networks,” because of the gambling potential they represent.

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“Metaverse Web 3.0 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 owners of assets by removing capital controls and opening their digital borders to free market capitalism, ”the report states.

Related Metaverse and blockchain gaming altcoins rally as Bitcoin seeks support

The price of native tokens for open Metaverse platforms such as Decentraland (MANA) and The Sandbox (SAND) has increased in recent times, gaining 49% and 102% each to hit $ 5.03 and $ 7.60. at the time of writing.