Metavers – The Crypto Hit of the Year

Not all projects and sectors are equal in the face of the general decline in the cryptocurrency market. And even if certain safe values ​​such as Bitcoin and Ethereum clearly give the trend, other areas have posted much higher returns over the last 12 months. With current successes in mind, these brand new virtual worlds developed under the generic term of metaverses. An explosion that occurred at the end of last year, but whose consequences are still notable according to the report just published by the Kraken platform.

The metaverse sector has experienced a remarkable (re)birth over the past year. With the explosion of virtual land projects or other new generation video games (some would say Web3). And an economic model developed around a sort of head-on collision between the functionalities offered by NFTs and the use of cryptocurrencies. With as a notable tipping point, the change of name operated by Facebook for “Meta” in order to rush into this breach also applicable to social networks.

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But Meta is ultimately to metaverse what PayPal is to cryptocurrency payments. An attempt to strategically – and somewhat desperately – recover sectors that already have the structural and/or ideological capacity to do without this kind of cumbersome player. Because this digital economy still in the making imposes itself a little more each day, against regulations and denigrations. And over the past year (YTD), it is these crypto-virtual worlds that always impose improbable returns.

Metavers – The Crypto Hit of the Year

An inventory drawn up by the Kraken platform, in a recent report from its analysis branch (Intelligence) entitled: “The metaverse: an inflection point. This about those virtual worlds first named as such in The Virtual Samurai (Snow Crash), a cyberpunk-leaning dystopian tale written by Neal Stephenson in 1992. And become, in Kraken’s words, “a mainstream pop culture phenomenon 30 years later.” » With the significant development over the past year of projects of this kind, surfing on the meeting between various specificities of the cryptocurrency sector and blockchain technology.

Although metaverses exist without blockchain, such as Meta’s Horizon Worlds project, several major players currently rely on this technology, cryptocurrencies and NFTs. One example of how crypto metaverses differentiate themselves from their centralized versions is the use of NFTs to give individuals control over their digital assets. For example, the latter play an important role in the growth of blockchain-based gaming, which is an integral part of the metaverse.

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A dynamic also highlighted in a recent report by the DappRadar structure. With still significant investments in the metaverse and crypto-gaming sector, despite the current decline in the cryptocurrency market. Because no less than 2.5 billion dollars were raised in the cycle of financing dedicated to this nascent economy, during the first quarter of this year 2022.. For good reason: according to the data in this same report, more than 50% of recorded blockchain activity comes from game DApps and/or projects related to these virtual realities.

Metaverse – 395% YTD returns

And as figures always speak louder than declarations of intent, the results presented by these various studies can be verified in practice. Because if we take the main current projects of the metaverse, their cryptocurrencies are often among the few to still show significant yields in YTD. With, for example and in a non-exhaustive way, Decentraland (MANA) and its +40%. But more surely The Sandbox (SAND) up 340% or Axie Infinity (AXS) and its +390%, while everyone is talking about its current difficulties. Without forgetting the latest success StepN (GMT) and its improbable +910%since its launch just a few months ago.

And all this allows the metaverse sector to post, all projects combined, an annual return over the last 12 months (YTD) estimated at +395%. While at the same time, only the exchange platforms (exchange) still show green, with a very small +6% which hangs by a thread of regulator. As in the recent case of Binance and its ex-cryptocurrency BNB, in the sights of the American Security and Exchange Commission (SEC). But all this still very far from the -72% of DeFi, at the head of a very sad record. But also -41% of layer 1 type networks.

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