Metaverse coin projects recorded huge gains in January and the industry is expected to reach $5 trillion valuation by 2030. Crypto expert Dorian Batycka takes an in-depth look at the metaverse space.
“The metaverse coin industry will reach a value of 5 trillion dollars”
cryptocoin.com After spending a significant portion of 2022 in recession, a number of tokens in the metaverse sector have seen significant gains over the past few weeks. In this context, 18 of the top 20 tokens in the industry increased by +319% compared to last year in 30 days. Two metaverse coin projects Magic and High Street rose north of 300% last month.
The Metaverse coin market is characterized by virtual worlds related tokens and decentralized platforms built on Blockchain technology such as Decentraland and Sandbox. The total market capitalization of the 92 coins in the Metaverse industry index is $9.51 billion. These tokens are used as currency in virtual environments. It is also used as a way to use certain services or as a way to purchase content on these platforms, known in the industry as play-to-earn.
Their recent rise in popularity may be due to several factors. The biggest of these is the multi-billion-dollar push by many at Big Tech to see the industry through a range of expensive VR and AR apps. In January 2023, McKinsey reported that the Metaverse sector could reach a value of $5 trillion by 2030, with a significant push by companies like Alphabet (Google), Apple and Meta (Facebook) expressing interest in developing this market.
Potential for metaverse effects / Source: McKinseyAdd to this the growing popularity of token projects that unlock the keys to culture in the arts and entertainment, such as ApeCoin, which is surprising and uses the support of celebrities like Snoop Dogg to advance projects related to the Bored Ape Yacht Club community. For example, the CoinDesk Culture and Entertainment Index (CNE), which includes a number of metaverse coins like Decentraland and Sandbox, as well as game tokens earned by playing like Axie Infinity, skyrocketed by 83.2% last month.
CoinDesk Culture and Entertainment Index / Source: CoindeskJanuary’s top performers
Internet Computer (ICP): 30-day change 46.83%
While somewhat outlandish when it comes to traditional metaverse tokens, Internet Computer (ICP) is a digital token that allows users to create apps, websites, and other web services developed by the Dfinity Foundation and powered by leading venture capital firms Andreesen. Horowitz and Polychain Capital. IC Gallery allows users to create an interoperable 3D metaverse by integrating GameFi and DeFi. This allows ICP owners to play, print and trade all their available NFTs through a variety of immersive 3D experiences.
Internet Computer’s website currently has 75 projects, including one DVSR, which labels itself as a decentralized version of Reddit. Another, Kinic, functions as a decentralized search engine.
Decentraland (MANA): 30-day change 138.73%
Decentraland (MANA) remains one of the most popular metaverse coin projects, allowing users to decentralize purchase, develop and trade virtual land in one of the industry’s most popular ecosystems. Its users include major art galleries, museums, fashion houses and brands.
Decentraland has one of the most active communities in the entire metaverse coin industry. From January 16-19, the company partnered with the ATP and the Australian Open to offer several matches that can be viewed on the metaverse. Users were also able to interact via ‘New AO Tennis Club’ and ‘Beach Bar’.
The Sandbox (SAND): 30-day change 78.32%
The Ethereum-based metaverse and gaming platform, which allows users to develop intrigues and monetize unique in-world assets such as digital collectibles, also had a significant hit during January. Sandbox’s gains come soon after a token unlock is scheduled for mid-February, which will release 12% of the token supply.
Axie Infinity (AXS): 30-day change 69.54%
Developed by Vietnamese studio Sky Mavis, the hugely popular token-based online video game has reached an average of 2.78 million unique users per month. That number has since dropped to about 411,653. However, it still has a sufficiently active daily community of users who give this token its power in numbers. Axie continues to improve DeFi engagement. On February 2, Axie Infinity’s engine, Ronin Network, said it will begin allowing users of the Play-to-Earn game to receive credits directly from their wallets.
Metaverse coins face various challenges
For Metaverse tokens to reach the next potential bullish wave, most analysts agree that a convergence of technological factors must occur first. Devices such as augmented reality/virtual reality, sensors, haptics and peripherals; interoperability between and open standards; platforms; and the development tools that allow innovation to be built on top of it, there are some hurdles to overcome before the metaverse coin industry can be adopted more widely.
