The metaverse is a $1 trillion opportunity, crypto giant Grayscale says as virtual land sales grow | Currency News | Financial and business news

Facebook, now called Meta, created some images to show what the metaverse might look like.

  • Crypto giant Grayscale said the metaverse represents a $1 trillion annual revenue opportunity.
  • It’s because pieces of virtual land have been sold in metaverse projects for over $2 million.
  • Grayscale said the metaverse represents a major opportunity for the crypto world, accelerating investment.

The metaverse has the potential to become a $1 trillion annual revenue opportunity in the worlds of advertising, digital events, e-commerce and hardware, according to a new report from crypto giant Grayscale.

Grayscale’s report, released Wednesday night, comes amid a surge of interest in the metaverse after Facebook officially changed its name to Meta as it focuses on the virtual immersive world it believes is the future of the internet.

This week saw early indications of the potential size of the metaverse economy, with virtual land parcels in crypto-based metaverses Decentraland and Axie Infinity selling for more than $2 million.

The metaverse refers to a series of online 3D virtual environments, where people can play games, build things, socialize, work and even trade and earn crypto assets.

The most well-known individual metaverses at the moment are in gaming, with Fortnite and Roblox gaining huge popularity in recent years. Grayscale estimated that revenue from virtual game worlds could grow to $400 billion by 2025, from about $180 billion in 2020.

Still, Grayscale, which manages the world’s largest cryptocurrency fund, said the metaverse is still “in its infancy.” It said Facebook’s plans to spend $10 billion on the metaverse this year are a sign of the market’s potential.

“The market opportunity to bring the Metaverse to life could be worth more than $1 trillion in annual sales,” the report said, though it did not specify a time frame.

The report’s authors, Grayscale’s head of research David Grider and research analyst Matt Maximo, argued that the metaverse represents a huge opportunity for crypto firms.

Read more: The metaverse will not revolutionize the office. But it could create new ways to make money.

Many current metaverse projects, such as virtual reality or games, are run by so-called Web2 companies, which are centralized and profitable. Facebook, which launched the virtual reality space Horizon Worlds, is one example.

But increasingly, metaverse projects are being created on or heavily connected to crypto technology, giving users greater control and earning money to use in the real world. This is known as the Web3 metaverse.

Grayscale listed the monetization opportunities for consumers within the Web3 metaverse. These include art galleries that launch NFTs, games and casinos where players win crypto, digital billboards and music venues where DJs and artists hold concerts.

In the third quarter, total fundraising via Web3 and NFT reached $1.8 billion, out of total crypto fundraising of $8.2 billion, Grayscale said. It added that investment “recently started to accelerate”.

Grayscale’s report focused on Decentraland. In that metaverse, people log in to play games, earn the native cryptocurrency mana, buy NFTs, including virtual land and collectibles, and vote on the governance of the economy.

The crypto investment company recently established a Decentraland trust that invests solely in mana. According to Coingecko, the cryptocurrency is up about 550% in the past 30 days.

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