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

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Crypto funding big Grayscale has revealed a bullish report on the Metaverse, estimating that the “market opportunity” for bringing the Metaverse to the mainstream could also be price 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” comparable to Decentraland.

The report highlights that Metaverse platforms built-in with crypto tokens, decentralized finance (DeFi) providers comparable to staking and lending, NFTs, decentralized governance and decentralized cloud storage have “created a new online experience” that’s quickly attracting new customers.

Analyzing “global all-time active metaverse wallets” knowledge because the begin of 2020, it discovered the consumer base has grown by 10X since that point to sit down at round 50,000 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 the whole crypto sector within the quarter, rating it because the “top sub-sector” throughout the Web 3.0 and NFT class.

Market alternative

The researchers word a variety 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 3.0 improvements comparable to play-to-earn (P2E).

Global income from digital world gaming totaled $180 billion in 2020, with “premium spending” accounting for around $40 billion, with estimates the sector could pull in more than $400 billion by 2025, primarily driven by the in-game spending model.

The report argues that this shift is “accelerating further with the transition from Web 2.0 closed corporate Metaverses to Web 3.0 open crypto Metaverse networks,” due to the play-to-earn potential they represent.

“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 price of the native tokens for open Metaverse platforms such as Decentraland (MANA) and The Sandbox (SAND) have been on a tear of late, gaining 49% and 102% each to sit at $5.03 and $7.60 at the time of writing.