Interest in Metaverse Still Present, Though Severely Reduced
Interest in metaverse projects is still present in some investors and venture capital companies that keep pouring millions into these initiatives since the start of 2023. A report published in June by Dappradar, a Web3 tracking site, found that the interest in virtual worlds fell enormously, with trading numbers hitting $56 million during Q2, falling more than 80% compared to Q1.
The report attributes this fall to the public’s loss of interest in topics like the metaverse and virtual worlds while meme coins and artificial intelligence (AI) reached mainstream status. This is also evidenced by the strepitous fall in funding raised by startup companies developing activities in this sector.
Dappradar found that the total funding received by metaverse projects since the start of 2023 fell to $707 million, a little less than 10% of what metaverse projects raked in during 2022 – $7.6 billion. However, the metaverse shows its strength in the Web3 environment, commanding 43.68% of all the investments in the sector, according to data presented in the report.
The Future of the Market Is in Asia
Dappradar’s report profiles Asia, including regions like Hong Kong, mainland China, and Japan, as a continent where the metaverse will thrive, as governments and companies are investing heavily in the sector and its development.
Hong Kong is mentioned as an international metaverse hotspot, as the government has committed to creating an innovation-friendly environment with real estate and luxury goods sectors as a significant part of this nascent metaverse industry.
On the other hand, Dapparadar notes mainland China has been one of the few countries that have formulated a metaverse plan that includes the implementation of initiatives in the education and tourism sectors. Furthermore, Chinese companies like Bytedance, Alibaba, Baidu, and Tencent have invested in developing metaverse hardware and software.
Japan, quoted as a leader in the entertainment and gaming environments, is also poised to take advantage of the metaverse, as it integrates national intellectual properties (IPs) into virtual and augmented reality applications, such as Pokemon Go.
Key Points:
- Interest in metaverse projects has decreased significantly, with trading numbers falling more than 80% compared to Q1.
- The public’s loss of interest in the metaverse is due to the rise of meme coins and artificial intelligence.
- Total funding for metaverse projects in 2023 is less than 10% of the funding raised in 2022.
- The metaverse continues to be a strong investment in the Web3 environment, commanding 43.68% of all investments in the sector.
- Asia, particularly Hong Kong, mainland China, and Japan, is seen as the future market for the metaverse due to heavy investments and government support.
Hot Take:
While interest in the metaverse has decreased, it still remains a significant investment opportunity for some. The decline in public interest and funding can be attributed to emerging trends in the cryptocurrency and AI sectors. However, Asia, with its strong government support and innovative initiatives, is poised to become a thriving hub for the metaverse market.
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