Despite the brutal bear market, metaverse projects have managed to capture 44% of total web3 investments in 2023.
TL;DR
- Metaverse dominates VC investments, with $707M poured into projects in H1 2023, representing 44% of web3 investments.
- The AR/VR sector shows promise for the metaverse, as tokens experience a 5% surge following Apple’s Vision Pro headset launch. However, temporary setbacks occur when regulatory authorities classify tokens as securities.
- Digital land trade volume in Q1 sees a significant increase, which is its highest level since 2022. But trade volumes decline by 81% in Q2. Despite this, the metaverse industry continues to grow.
Metaverse Investments Dominate
Investors can’t get enough of the metaverse, with nearly half of all VC investments in the first half of 2023 being poured into this sector. DappRadar’s latest report reveals that venture capital firms have poured $707 million into metaverse projects, capturing a 44% share of overall web3 investments.
Interestingly, the report shows how the augmented reality/virtual reality (AR/VR) sector could significantly boost the metaverse. When Apple launched its Vision Pro headset on June 5, metaverse tokens like SAND and MANA experienced a 5% surge. However, momentum stopped when the U.S. Securities and Exchange Commission classified these tokens as securities, causing a temporary setback.
Digital land, a valuable asset in many metaverse networks, had a great start to 2023. Trade volume in Q1 grew to $311M, its highest level since May 2022. Additionally, the number of digital land sales grew by 83%, hitting a record high of 146,690. Sadly, the second quarter saw a steep decline of 81% in trade volumes.
Despite these challenges, the metaverse industry continues to grow steadily, with Yat Siu, co-founder of Animoca Brands, noting the emergence of Bitcoin Ordinals. Users create these NFT-like assets by using an inscription technique on the Bitcoin blockchain.
Furthermore, partnerships like the one between Animoca and Mitsui, a well-known Japanese trading firm, show the growing interest in the metaverse and web3 in Japan. As the metaverse grows, investors remain about its potential, giving investments even with fluctuations in trade volumes.
All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, make your own research prior to making any kind of investment.
