What is a Metaverse?
Metaverse has become an extremely popular buzzword in Web3, especially after Facebook changed its name to Meta. Although Metaverse doesn’t officially have an agreed-upon definition yet, generally it refers to a virtual 3D space where users can create an identity and participate in a fully virtual economy. According to GlobalNewsWire, “The global metaverse market size is projected to grow from USD 61.8 billion in 2022 to USD 426.9 billion by 2027…” There are only a few Metaverse projects currently, but clearly, most people agree that it will see exponential growth in the coming years.
Most Popular Metaverses
There have been many Web3 Metaverse projects developed so far, but only a few of them have caught significant attention. Currently, the two largest and most notable Metaverse projects are Decentraland and The Sandbox. With the MANA and SAND tokens respectively, users can purchase plots of land and a variety of in-game assets (users can also purchase with ETH on OpenSea). Owners of these land plots can design and build applications or games on top of the land, allowing for play-to-earn games to be added within the Metaverse. These plots are also being used for advertising with large brands such as Adidas, Atari, and Warner Music Group all owning land plots in The Sandbox. Both the Sandbox and Decentraland have benefited greatly from first-mover advantage as they are the most established projects in the space. They both still have a long way to go in building out more engaging use cases, but they have set the foundation for the future of the Metaverse.
Many more projects and companies will release Metaverse projects over the coming years, but one of the most anticipated is Yuga Labs’s The Otherside. Yuga Labs was the team behind Bored Ape Yacht Club and brought in over $300 million from their land mint, selling about 55,000 plots within three hours. VCs gave The Otherside a staggering $4 billion seed stage valuation, showing just how much hype this project has received. So far, just the land plots are available and no actual Metaverse has been created, so there’s clearly a ton of work to be done to live up to expectations. Who knows how the end project will turn out, but the market certainly thinks it will be huge.
NFTs in Metaverses
NFTs play a vital role in a Metaverse’s ecosystem and can serve as plots of land, playable characters, in-game assets, accessories/skins, etc. They can also serve as the access pass to entering and playing the actual game. Most metaverses are highly customizable, so how NFTs are used and incorporated can vary greatly. With that said, NFT land from Decentraland and Sandbox are top 10 in total volume on Opensea. Clearly there has been a lot of demand for this virtual land!
FAQs
What is a metaverse?
There is no official definition yet, but generally a virtual 3D space where users can create an identity and participate in an in-game economy
Are there multiple metaverses?
Yes, there are many different metaverses and many more to come.
What can I do in the Metaverse?
It depends on the Metaverse that you are interacting with, but just about anything!
