2022 saw a significant decline in the excitement surrounding the metaverse, turning it into one of the worst-performing sectors in blockchain with an average drawdown of 89%. Even Facebook’s ambitious plans for the metaverse are facing challenges, with losses exceeding $1 billion per month and their flagship “Horizon Worlds” attracting fewer than 200,000 users monthly.
Despite the setbacks, there are promising signs of progress in 2023 due to substantial fundraising efforts and advancements in platforms like The Sandbox, play-to-earn games, and niche metaverse platforms.
Sébastien Borget, the COO and co-founder of The Sandbox, expresses optimism about the performance of metaverse platforms in 2022. While some statistics pointed to low visitor numbers, Borget disputes these claims, stating that the platform sees an average of 30,000 daily visitors, with expectations for a surge in users once the platform goes mobile.
The Sandbox’s Alpha Season 3 has witnessed significant growth with 17 million visits since August 24, indicating a promising trajectory for the platform’s development.
Can the Metaverse Replace Reality?
Upland, a virtual property trading game linked to the real world on the EOS blockchain, and The Sandbox are part of the Open Metaverse Alliance. Dirk Lueth, the CEO of Upland, notes the increased attention from non-crypto native audiences and brands, reflecting progress in envisioning the future of the metaverse.
Upland boasts a large and dynamic community of unique landowners engaging in various activities, such as creating value, building communities, and forming specialized interest groups within the platform.
The Rise of Digital Goods in the Metaverse
Digital ownership and asset interoperability are seen as key drivers for mass adoption of the metaverse. However, challenges exist in translating assets between different virtual worlds, as highlighted by Kevin Rose from Alien Worlds.
Marja Konttinen of the Decentraland Foundation emphasizes the significance of digital ownership in fashion within the metaverse, showcasing the importance of owning and accessing digital wearables for a complete virtual experience.
Various metaverse platforms offer unique experiences, from community building and virtual events to immersive activities in virtual reality environments like Somnium Space, emphasizing the potential for social interactions and novel experiences in the evolving metaverse landscape.
He mentions that the majority of landowners on the platform have purchased land primarily for construction purposes, which has led to a high level of engagement and repeat visits from owners.
Sychov introduces the concept of “worlds” to the land, accessible through stargates, where individuals and companies can purchase and engage in limitless building activities. This parallels Borget’s enthusiasm for the rise in activity by design studios within The Sandbox. Despite the crypto market slowdown, builders are active.
A tweet from CZ of Binance encourages continuous building, emphasizing the importance of perseverance in the sector.
The play-to-earn trend popularized by Axie Infinity has been instrumental in pushing the metaverse forward. Yield Guild Games (YGG) has thrived by bringing players together to earn in blockchain games. The industry’s future looks promising despite market fluctuations.
Rania Ajami from Metropolis suggests reimagining play-to-earn games to focus on creating assets like digital art or aiding in business growth within the metaverse. This approach aims to add value beyond mere gameplay.
Metropolis World has attracted users with its rich art and immersive storytelling, providing a pre-built world for users to enjoy. The metaverse is evolving into a digital space that complements real-life experiences rather than replacing them.
Zara Zamani of Neoki Metaverse focuses on intellectual property to foster community cohesion and enhance user experiences. Transitioning smoothly from Web2 to Web3 is pivotal for the success of virtual worlds.
Joel Dietz of MetaMetaverse views the metaverse as a versatile platform for various activities like gaming, socializing, attending events, and shopping. The realm of virtual art and entertainment is expanding rapidly.
Decentraland’s Konttinen acknowledges the misinformation and FUD surrounding metaverses, urging for better metrics to evaluate platform success. The diverse landscape of metaverse platforms makes it challenging to predict future winners.
The global metaverse market is rapidly growing, showcasing the potential for significant economic value creation. Early adopters who can foster vibrant communities and sustainable economies within their platforms are poised for success.
Jillian Godsil, an accomplished journalist and advocate for diversity in blockchain, examines the intricate landscape of metaverses and the potential they hold for the future.
