Metaverse projects attract millions in funds, in spite of a dip registered in Metaverse land prices
The Metaverse space is attracting big venture capital firms that are ready to invest millions into projects despite a sharp decline in virtual world market due to increased interests in AI and DeFi services, etc.
Highlights
- The Metaverse industry continues to attract significant investments
- Several big, venture capital firms have invested huge amounts in Metaverse-based projects
Despite a fall in Metaverse land prices over the last few months, the Metaverse industry continues to attract significant investments. As per the latest report by DappRadar, a platform offering valuable insights on decentralised applications to a global audience, venture capital firms have made investments worth $707 million into Metaverse projects in the first half of 2023, which accounts for 44 percent of all web3 investments.
A decline witnessed in trading volumes for top virtual dapps
In Q2 2023, trading volumes experienced a sharp fall, plunging 81 percent to $56 million owing to decreased trading volumes for top virtual dapps like Topia and Otherdeed for Otherside, cites the report. Further, it says, increased interest in artificial intelligence, DeFi services, and memes, is another reason which can be attributed to the said decline.
It must be noted that Topia's floor price waned by nearly 99.58 percent, while Otherdeed for Otherside declined by 86 percent in land value. Even, Decentralnd and the Sandbox witnessed a drop in their land prices.
Debut of Apple's VR Pro stirred market shifts
Despite these upheavals, the Metaverse space has recorded some significant developments. Also, while the launch of Apple's VR Pro stirred market shifts, the growth of decentralised identity solutions, with decentralised applications like ENS i.e., Ethereum Name Service, Unstoppable Domains, and ADA Handle gaining popularity.
Moreover, the launch of Token Bound Accounts (ERC-6551) will transform the way token holders interact with NFTs. For instance, ERC-6551 permits every NFT to own Ethereum and other ERC tokens like ERC-20, 721 tokens, etc., thereby 1155 tokens, opening avenues for a variety of use cases that earlier were difficult to implement on-chain.
Asia to dominate Metaverse market
DappRadar’s report also highlighted Asia's potential to capture the Metaverse market. It is anticipated that its GDP will get a boost of nearly $1.4 trillion by 2035, as countries like Japan, Hong Kong, and Mainland China have plans to leverage this emerging technology as a strategic asset for their digital future. Moreover, with continued funding by companies that believe in this space, the Metaverse sector is sure to have an exciting future.
