Grayscale: The metaverse is a $1trn opportunity
Active metaverse users increase by a factor of 10, according to leading digital asset manager
In a new report, the manager of the largest Bitcoin and Ethereum funds in the world has described the cryptocurrency metaverses as a potential $1trn (€891.4bn, £751.2bn) market opportunity.
Grayscale’s November report
In The Metaverse, Web 3.0 Virtual Cloud Economies, Grayscale Investment’s head of research, David Grider, and research analyst Matt Maximo declared that “crypto cloud economies are the next emerging market [EM] investment frontier”.
The report put the metaverse at the “forefront” of this internet revolution, defining it as “a set of interconnected, experiential, 3D virtual worlds where people located anywhere can socialise in real time to form a persistent, user-owned, internet economy spanning the digital and physical worlds.”
Grayscale observed that the number of global all-time active metaverse wallets had grown by a factor of 10 since the start of 2020 to reach 50,000 by June 2021.
The report stated: “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 increased interest in decentralised finance (DeFi), government and cloud structures witnessed in recent year, in addition to the burgeoning NFT space, were identified as having “created a new online experience” that is already attracting users.
Facebook rebrand a turning point
For Grayscale, Facebook’s recent rebranding as “Meta” represents an “inflection point” that will force other prominent tech companies “to start exploring the Metaverse to stay competitive”.
It observed: “Capital investment into the sector has recently started to accelerate, but compared to the $10bn companies like Facebook plan to invest, and the amounts that could follow from other companies and venture capitalists, the metaverse is in its early innings.”
The report further described the metaverse as potentially “a trillion-dollar revenue opportunity across advertising, social commerce, digital events, hardware and developer/creator monetisation”.
By 11:30 (GMT), leading metaverse-related cryptocurrencies traded up, with Decentraland (MANA) and The Sandbox (SAND) rising by 7% and 9.6%, respectively.