The metaverse seems to have no known crisis. After the fall of digital money, virtual worlds continue to attract people, but don’t hide their heads above the water.
A successful market… or almost
The crypto crash has forced investors to resort to less risky projects, and above all less subject to economic changes. Some of them no longer had to look far since the metaverse, which at first glance seemed untouched, opened its arms to them. Unfortunately, this is an illusion.
According to a report published by Kraken Intelligence and since the month of May, amid the crypto crash, tokens associated with the metaverse have been performing well. Overall, it is estimated that the latter has benefited from an average increase of almost 400% a year.
Looking at 1 year performance, the metaverse sector significantly outperformed the market year-on-year with a return of +389%. These include properties such as Decentraland (MANA), Sandbox (SAND) and Axie Infinity (AXS). The performance remained positive with the inclusion of projects such as Apecoin (APE) and STEPN (GMT).
Excerpt from the report published by Kraken Intelligence
Such a phenomenon can be explained by the crypto community’s constant interest for virtual worlds, which used to be relatively new. While fashion offers them all its favors, users rush to buy virtual land and therefore use these famous coins associated with the metaverse. The most selfish are able to speculate on their entertainment price as they do in the Bitcoin flow for example, while finding an audience of buyers.
The NFT market, which makes virtual worlds a real market and which still enjoys all its popularity, also plays a role in the event. As for the various brands, they have not stopped showing interest in the metaverse and also continue to flow there.
From a broader perspective, the metaverse has also served as an escape for aggrieved investors and the public who, hit hard by news of war and global inflation, have found a breath of fresh air. in the fresh air there thanks to the fun and virtual part of it. It creates an entire ecosystem of visitors that allows the crypto-metaverse economy to grow and their coins to reach 400% growth within a few months.
However, contrary to popular belief, the metaverse is not immune to the crypto crash that is damaging the industry and ending the steady rise in peer tokens. While virtual worlds remain popular and investment continues to flow today, related tokens are seeing their price drop just like any other cryptocurrency.
The metaverse is far out of the woods. Some investors who have returned to its economy as well as NFTs continue to speculate only to strengthen the weakness of its bubble, which could burst at any hour. The more its popularity, the greater the risk.
Unfortunately, for Tony Tran, founder of the Peer company working on building technologies for the metaverse, the crypto sphere is not available to deal with such an event. In contrast, virtual worlds emerged very early, even before the blockchain had established a solid structure.
Everyone is trying to make the blockchain as safe, fast, and as decentralized as possible, but we argue that’s not the right problem to solve. It’s like building a high-speed highway without any city! Everything in the blockchain revolves around trading, from tokens to NFT. But in order to bring the blockchain to the masses, we need to do what the desktop experience has done for the command line UI: we need to hide the complexities of the blockchain and expose the possibilities so that normal people can see it. […] Instead of bringing the physical world into cyberspace, we started mapping cyberspace directly to the physical world.
Excerpt from Tony Tran’s intervention for Decrypt media
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