Metaverse
Reaching the Real World

Exclusive

Digital Gucci Bag sold for USD $ 4,115 on Roblox

Microsoft acquires Activision Blizzard

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of Metaverse platforms.”
– Satya Nadella, Chairman and CEO

Metaverse
Reaching the Real World

Exclusive

Digital Gucci Bag sold for USD $ 4,115 on Roblox

Microsoft acquires Activision Blizzard

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of Metaverse platforms.”
– Satya Nadella, Chairman and CEO

Key Stats and Coins

Source: Bloomberg Intelligence, Newzoo, IDC, PWC Two Circles, Statista

Source: Bloomberg Intelligence, Newzoo, IDC

The global market for Metaverse estimated at US $107.1 Billion in the year 2020, is pro- jected to reach a revised size of US $758.6 Billion by 2026, growing at a CAGR of 37.1% over the analysis period – ResearchAndMarkets.com

Decentraland | MANA

The Sandbox | SAND

Axie Infinity | AXS

Flow | FLOW

Theta Network | THETA

Enjin Coin| ENJ

Source: Newzoo

$12,000

The average price of a virtual land lot in 2021 doubled in six months, rising from $6,000 in June to $12,000 in December in the top four main Web 3.0 Metaverses.
Source: Republic Realm

Metaverse
The Metaverse is a cyberspace that mostly involves VR and is characterized by virtual worlds that continue to exist even when a player is offline. Users can not only create, buy and sell goods, but also get in touch with other users while remaining anonymous.

The evolution of the Internet formed the Metaverse

1989 was the birth of the Internet. Tim Berners-Lee developed the World Wide Web at Cern in Geneva. Since then, the technology has undergone a rapid technological transformation from Web 1.0. to Web 3.0.
Web 1.0. refers to the early years of the Internet, when users could mainly visit static Web pages to learn about specific topics, such as reading news online or asking search queries on Yahoo.

With Web 2.0., users then got the opportunity not only to read content, but also to contribute their own content. Classic examples of this are myspace, Facebook or blog posts, which provided the community self-made content.

Finally, Web 3.0. not only offers users the opportunity to read content and publish their own content, but also leaves data sovereignty to the user, which previously rested with the platforms themselves. The Metaverse, in which user data is stored decentrally and anonymized, is also based on this principle.

Source: Decentraland

The Seven Layers of the Metaverse

Source: medium.com

Evolution of Decentralized Web

Source: Goldman Sachs Global Investment Research

Key Stats and Coins

Source: Bloomberg Intelligence, Newzoo, IDC, PWC Two Circles, Statista

Source: Bloomberg Intelligence, Newzoo, IDC

The global market for Metaverse estimated at US $107.1 Billion in the year 2020, is pro- jected to reach a revised size of US $758.6 Billion by 2026, growing at a CAGR of 37.1% over the analysis period – ResearchAndMarkets.com

Decentraland | MANA

The Sandbox | SAND

Axie Infinity | AXS

Flow | FLOW

Theta Network | THETA

Enjin Coin| ENJ

Source: Newzoo

$12,000

The average price of a virtual land lot in 2021 doubled in six months, rising from $6,000 in June to $12,000 in December in the top four main Web 3.0 Metaverses.
Source: Republic Realm

Metaverse
The Metaverse is a cyberspace that mostly involves VR and is characterized by virtual worlds that continue to exist even when a player is offline. Users can not only create, buy and sell goods, but also get in touch with other users while remaining anonymous.

The evolution of the Internet formed the Metaverse

1989 was the birth of the Internet. Tim Berners-Lee developed the World Wide Web at Cern in Geneva. Since then, the technology has undergone a rapid technological transformation from Web 1.0. to Web 3.0.
Web 1.0. refers to the early years of the Internet, when users could mainly visit static Web pages to learn about specific topics, such as reading news online or asking search queries on Yahoo.

With Web 2.0., users then got the opportunity not only to read content, but also to contribute their own content. Classic examples of this are myspace, Facebook or blog posts, which provided the community self-made content.

Finally, Web 3.0. not only offers users the opportunity to read content and publish their own content, but also leaves data sovereignty to the user, which previously rested with the platforms themselves. The Metaverse, in which user data is stored decentrally and anonymized, is also based on this principle.

Source: Decentraland

The Seven Layers of the Metaverse

Source: medium.com

Evolution of Decentralized Web

Source: Goldman Sachs Global Investment Research

How the Metaverse has evolved

The Metaverse is evolving from two decades of gaming and will be built upon gaming infrastructure.

Source: Galaxy Digital Research

A Metaverse full of opportunities

Recent headlines underscore the tremendous interest in the Metaverse and point to the great potential behind this technology. Goldman Sachs sees dramatic shifts in industry trends in Web 3.0 (decentralized, more local/targeted, etc.) that could impact current investor perceptions of moat/platform strength, industry input costs, potential monetization headwinds from personalization, and the potential for changing media and commerce trends as Web 3.0 transitions. Depending on the industry, different potentials are currently expected. The retail industry in particular appears to have above-average potential, including virtual shoes, stores, fashion shows, and the purchase of physical objects in the virtual world.

2021 TAM ($bn), 2021 Digital Penetration, and Virtual Use Cases – By Segment

Source: Goldman Sachs Global Investment Research

According to Harvard Business Review, the immersive environment of the Metaverse is not just an opportunity for customer-facing businesses, though. From training future surgical professionals to product demonstrations for retail employees, there are a variety of business opportunities. The technology company Nvidia’s management, for example, believes that investments in Metaverse simulations, such as those used in manufacturing and logistics, will reduce waste and accelerate better business solutions. And Microsoft is positioning its cloud services to form the structure of the Metaverse, using its Mesh technology platform to enable avatars and immersive spaces that fit into collaborative environments such as teams over time. With the hybrid or remote work environments of the post-Covid era, many of these creative virtual business experiences are likely to become even more relevant to how companies engage with their employees and their clients. With the Metaverse, completely new possibilities and virtual segments develop and offer new opportunities.

Our hope is that within the next decade, the Metaverse will reach a billion people, host hundreds of billions of dollars of digital commerce, and support jobs for millions of creators and developers. _Mark Zuckerberg

Prada is following on from a handful of major luxury brands jumping into gaming, including Louis Vuitton, Balmain, Ralph Lauren and Burberry. _voguebusiness.com

Nike created this bespoke world with the backdrop of its world headquarters and inside Roblox’s immersive 3D space, building on its goal to turn sport and play into a lifestyle. _Nike.com/

I’m always on the lookout for new ways of connecting with fans and what we’ve created in The Sandbox is the future of virtual hangouts, NFT drops, and exclusive concerts. – Snoop Dogg

Key Participants shaping the Metaverse

Decentraland | MANA 
Decentraland (MANA) defines itself as a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetize content and applications. In this virtual world, users purchase plots of land that they can later navigate, build upon and monetize.


Focus: Decentralized Metaverse Gateway
Main Backers: Grayscale, Digital Currency Group, Animoca Brands, Boots VC, Fundamental Labs

Axie Infinity | AXS 
Axie Infinity is a blockchain-based trading and battling game that is partially owned and operated by its players. To learn more about this project, check out our deep dive of Axie Infinity.
Inspired by popular games like Pokémon and Tamagotchi, Axie Infinity allows players to collect, breed, raise, battle and trade token-based creatures known as Axies.


Focus: Play-to-Earn & Play-to-Collect
Main Backers: Hashed, ConsenSys, Pangea Blockchain Fund,

The Sandbox | SAND 
Launched in 2011 by Pixowl, The Sandbox is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs), the Sandbox creates a decentralized platform for a thriving gaming community..


Focus: Decentralized Metaverse Gateway
Main Backers: AngelHub, Mindfulness Capital, SoftBank, Galaxy Interactive, Steriling VC, Blue Pool Capital

Enjin Coin | ENJ 
Enjin Coin is a project of Enjin, a company that provides an ecosystem of interconnected, blockchain-based gaming products. Enjin’s flagship offering is the Enjin Network, a social gaming platform through which users can create websites and clans, chat, and host virtual item stores.


Focus: Decentralized Infrastructure
Main Backers: Crypto.com Capital, DFG Group, Hashed, Hypersphere, BlockTower, Arrington XRP Capital

Flow | FLOW
Flow is a fast, decentralized, and developer-friendly blockchain designed to be the backbone of a new generation of games, apps, and the digital assets that fuel them. Flow is the only layer-one blockchain originally developed by a team that has consistently delivered great blockchain experiences for consumers: CryptoKitties, Dapper Wallet, NBA Top Shot.


Focus: Decentralized Infrastructure
Main Backers: A16Z Crypto, AppWorks, Union Square Ventures, Accomlice, Venrock, Blockcage Capital

Theta Network | THETA 
Theta (THETA) is a blockchain-based network specifically designed for video streaming. The Theta mainnet, launched in March 2019, operates as a decentralised network where users share bandwidth and computing resources on a peer-to-peer (P2P) basis.


Focus: Video Streaming
Main Backers: Samsung, DHVC, IBC, Sony Innovation Fund

Key Participants shaping the Metaverse

Decentraland | MANA 
Decentraland (MANA) defines itself as a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetize content and applications. In this virtual world, users purchase plots of land that they can later navigate, build upon and monetize.


Focus: Decentralized Metaverse Gateway
Main Backers: Grayscale, Digital Currency Group, Animoca Brands, Boots VC, Fundamental Labs

Axie Infinity | AXS 
Axie Infinity is a blockchain-based trading and battling game that is partially owned and operated by its players. To learn more about this project, check out our deep dive of Axie Infinity.
Inspired by popular games like Pokémon and Tamagotchi, Axie Infinity allows players to collect, breed, raise, battle and trade token-based creatures known as Axies.


Focus: Play-to-Earn & Play-to-Collect
Main Backers: Hashed, ConsenSys, Pangea Blockchain Fund,

The Sandbox | SAND 
Launched in 2011 by Pixowl, The Sandbox is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs), the Sandbox creates a decentralized platform for a thriving gaming community..


Focus: Decentralized Metaverse Gateway
Main Backers: AngelHub, Mindfulness Capital, SoftBank, Galaxy Interactive, Steriling VC, Blue Pool Capital

Enjin Coin | ENJ 
Enjin Coin is a project of Enjin, a company that provides an ecosystem of interconnected, blockchain-based gaming products. Enjin’s flagship offering is the Enjin Network, a social gaming platform through which users can create websites and clans, chat, and host virtual item stores.


Focus: Decentralized Infrastructure
Main Backers: Crypto.com Capital, DFG Group, Hashed, Hypersphere, BlockTower, Arrington XRP Capital

Flow | FLOW
Flow is a fast, decentralized, and developer-friendly blockchain designed to be the backbone of a new generation of games, apps, and the digital assets that fuel them. Flow is the only layer-one blockchain originally developed by a team that has consistently delivered great blockchain experiences for consumers: CryptoKitties, Dapper Wallet, NBA Top Shot.


Focus: Decentralized Infrastructure
Main Backers: A16Z Crypto, AppWorks, Union Square Ventures, Accomlice, Venrock, Blockcage Capital

Theta Network | THETA 
Theta (THETA) is a blockchain-based network specifically designed for video streaming. The Theta mainnet, launched in March 2019, operates as a decentralised network where users share bandwidth and computing resources on a peer-to-peer (P2P) basis.


Focus: Video Streaming
Main Backers: Samsung, DHVC, IBC, Sony Innovation Fund

Conclusion

The Metaverse is the hot topic of debate on Wall Street. Investors are eager to jump on the trend that many believe could be the future of the Internet. According to Jefferies, it could be the biggest disruption to human life ever.
There are also critical voices about the Metaverse, such as those of Bank Lombard Odier. Since the technological foundations are still being developed, there are not yet any agreed standards for interoperability between the various Metaverses. This is a critical issue, according to Lombard Odier, as consumers expect to be able to move and share virtual goods and experiences seamlessly across different platforms, and developers expect to be free to choose the appropriate cross-platform tools. Lombard Odier anticipates that many major platforms will need to adapt their business models to operate in an interoperable Metaverse.

Daniel Diemers
Board Member of FiCAS AG

“There is definitely an atmosphere of excitement, like in a gold-rush, but also lots of uncertainty. Like when early forms of virtual online worlds emerged, such as Habitat, WorldsAway or Second Life in the 90’ies and 00’s. The one big difference is that today this is a much broader, global movement, where AR/VR companies, big tech, the creator economy, online gaming and the blockchain world with its digital assets and NFTs are converging into something new.”

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