The metaverse seemed to know no crisis. After the fall of digital currencies, virtual worlds continued to attract people, but without staying afloat.
A successful market… or almost
The crypto crash has forced investors to turn to less risky projects, and above all less subject to the vagaries of the economy. Some of them did not have to look far, for the metaversus, appearing untouched at first glance, opened its arms to them. Unfortunately this was an illusion.
According to a report published by Kraken Intelligence and dating back to the month of May, amid the crypto crash, the tokens associated with the metaverse have shown excellent performance. In total, it is estimated that the latter have benefited from an average increase of almost 400% in one year.
Looking at the one-year performance, the metaverse sector significantly outperformed the market year-over-year with a return of +389%. This includes assets such as Decentraland (MANA), Sandbox (SAND), and Axie Infinity (AXS). Performance remains positive with the inclusion of projects such as Apecoin (APE) and STEPN (GMT).
Excerpt from the report published by Kraken Intelligence
Such a phenomenon could be explained by the constant interest of the crypto community in virtual worlds, which were quite new at the time. While fashion did them all the favors, users rushed to buy virtual land and therefore use these famous coins associated with the metaverse. The most greedy could speculate on their price at their leisure, as they did on the price of, say, Bitcoin, while finding an audience of buyers.
The NFT market, which has turned virtual worlds into a true marketplace and still enjoys full popularity, also plays a role in the phenomenon. As for the different brands, they never stopped showing an interest in the metaverse and continued to flock there.
From a broader perspective, the metaverse has also become an escape for disadvantaged investors and the public, which, hard hit by news of war and global inflation, has been able to breathe a breath of fresh air thanks to its recreational and virtual side. This has created an entire ecosystem of visitors who have grown the crypto metaverse economy and allowed their coins to reach 400% growth in a few months.
Nevertheless, contrary to popular belief, the metaverse was not immune to the crypto crash that brought down the industry and ended the steady increase in associated tokens. As virtual worlds remain popular and investments continue to pour in today, related tokens have seen their price drop just like any other cryptocurrency.
The metaverse is far from out of the woods. Some investors who have relied on its economy and that of NFTs to continue speculating have only exacerbated the fragility of its bubble, which in turn could burst at any moment. The more the popularity increases, the more risks are present.
Unfortunately, for Tony Tran, founder of the company Peer that is working on building technologies for the metaverse, the crypto sphere is not equipped to deal with such an event. Rather, virtual worlds would have emerged too early, even before the blockchain built a solid structure for itself.
Everyone strives to make blockchain as secure, fast and as decentralized as possible, but we argue that this is not the right problem to solve. It’s like building highways without cities! Everything in the blockchain revolves around trading, from tokens to NFTs. Mais pour apporter la blockchain aux masses, nous devons faire ce que l’expérience de bureau a fait pour l’interface utilisateur de la ligne de commande : nous devons cacher les complexités de la blockchain et exposer les possibilités afin que les gens normaux puissent l ‘to use. […] Instead of mapping the physical world into cyberspace, we are starting to map cyberspace directly onto the physical world.
Excerpt from Tony Tran’s intervention for the Decrypt media
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