Metaverse Adoption Will Power the Next Phase of NFT Growth
In the 1990s, Neal Stephenson gave the world a glimpse into the potential of virtual reality. The author coined the term “metaverse” in his science-fiction novel “Snow Crash,” which perceives as a virtual reality-based replacement for the internet.
In the book, characters explore the internet world using digital avatars of themselves, frequently as a means of escaping a dystopian reality.
Roughly three decades later, that’s precisely the future that Zuckerberg is building with Meta — minus the dystopia.
The social media shark has been working on its VR platform for years, but it was only in late 2021 that the company made a big push into the Metaverse with its rebranding from Facebook to “Meta.” The change sparked a renewed interest in VR and the potential of virtual reality-based video games, NFT marketplaces, property buying, and much more.
Since then, the Metaverse has been growing at an accelerated pace, with new platforms and use cases popping up left and right. And it’s not just gamers and early adopters who are taking notice. Mainstream companies like Amazon, Google, Microsoft, and Samsung are all making moves into the space.
On the other hand, innovators have devised creative ways to apply blockchain technology and non-fungible tokens (NFTs). The NFTs are digital assets stored on a blockchain and can represent anything from art to in-game items.
The key difference between NFTs and other digital assets is that NFTs are unique, and no one can replace them with another identical item. This property of NFTs makes them well suited for use in the Metaverse.
In a virtual world, NFTs can represent ownership of digital assets like land, buildings, and even avatars. NFTs can also represent in-game items, such as weapons, armor, and collectibles.
How Metaverse Adoption Will Power NFTs Growth
The potential for Metaverse in NFTs is enormous and one subreddit attracting increasing interest in the NFT space is Metaverse NFTs. According to research by NonFungible.com, Metaverse NFTs account for about 3% of the global NFT market value ($513 million).
As more companies enter the metaverse realm, the adoption of NFTs increases, and we can expect the market value of Metaverse NFTs to grow exponentially.
Here’s how the metaverse adoption will power the next phase of NFT growth.
NFT s have already seen widespread adoption in the gaming industry. Games like Decentraland, The Sandbox, and Cryptovoxels have all built their economies around NFTs. These games let players buy, sell, and trade virtual assets using NFTs.
As the Metaverse grows, several brands have started to experiment with NFTs. For example, Nike recently partnered with Dapper Labs, the company behind the popular blockchain game CryptoKitties, to release a line of digital sneakers that can only be purchased using an NFT.
And it’s not just limited to the gaming and fashion industry. The music industry is also diving into the NFT ocean. Early this year, Gramatik, a famous EDM artist, took his fans down the metaverse rabbit hole and released an album that could only be purchased using an NFT.
On the other hand, the famous West Coast rapper Snoop Dogg held an exclusive concert in The Sandbox’s Metaverse.
In February, Sandbox released a collection of 10,000 programmatically generated Snoop Dogg Avatar NFTs called the Doggies.
You can use these avatars to go to events and concerts, finish missions, socialize, and hang out with friends to experience the Metaverse like a celebrity. Picture yourself attending a Snoop Dogg concert in a quirky Doggie avatar, or play a part in a music video shot exclusively within the Metaverse.
Most businesses now think organizing concerts, art, and fashion shows inside corporate or conference settings can give their audiences exceptional experiences. This will keep their audiences within their ecosystem for a more extended period and increase the lifetime value of their clients.
Additionally, virtual real estate is becoming a popular investment as the Metaverse grows. Like in the physical world, some blockchain startups, like PARSIQ, create platforms where landowners in the Metaverse can generate rental income from their digital assets.
The protocol ensures that both the landowner and the renter’s obligations are agreed upon, governed by, and enforced by several smart contracts, mimicking the behavior of actual land.
Also, with inflation rates rising and economies tanking, increasing appetite for assets that can generate returns above the inflation rate. This is where Metaverse NFTs come in, as a new asset class that allows investors to generate passive returns and other bonuses. Although they are relatively new in the Metaverse, staking and yield farming have become popular ways to earn passive yields in the DeFi space.
Conclusion
It’s an excellent opportunity to explore and get involved in this new digital world, slowly becoming a part of our reality. From gaming and fashion to music and real estate, there are endless opportunities for businesses and individuals to get involved in the Metaverse. And with the increased adoption of Metaverse, we can expect the NFT market to grow exponentially.
This article was produced by Lawy3rz contributor — Mike Joel — Give him a clap.
