Why Ethereum is likely to be the choicest crypto for metaverse

Highlights

• While we’re still in the very early stages of the metaverse’s development and adoption, it appears there are already some frontrunners in the fray, vying to dominate the metaverse space in the years to come.
• Financial institution JP Morgan clearly has big expectations for the metaverse, predicting a market of US$1 trillion (and perhaps a lot more) could be on the way.
• One notable thing that metaverses have in common is the cryptocurrency they use.

What a time to be alive!

Right now, we are right on the precipice of a new technological revolution that has the potential to transcend to a societal revolution.

If you have not been living under the rocks, you already know how the metaverse has become one of the hottest buzzwords reverberating through the global tech sector.

While we’re still in the very early stages of its development and adoption, it appears there are already some front runners in terms of the big entities that will dominate the metaverse space in the years to come.

Why Ethereum Is Likely To Be The Choicest Crypto For Metaverse?

JP Morgan’s Decentraland Bet

Financial institution JP Morgan clearly has big expectations for this new virtual realm, predicting last week, a market of US$1 trillion (and perhaps a lot more) could be on the way.

The banking giant has also made no secret of which metaverse they believe will be the dominant player in the space--Decentraland. In fact, JP Morgan recently became the first big bank to establish a metaverse presence, setting up a virtual shop in Decentraland’s Metajuku mall.

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That’s not the only metaverse JP Morgan believes in, though. In its recent Opportunities in the Metaverse report, the banking giant also noted The Sandbox,  Somnium Space and Cryptovoxels as the leading Web 3.0 metaverse worlds.

Other possible contenders include Axie Infinity, Enjin Coin and Shiba Inu.

The Common Denominator

Apart from the fact that all these metaverses are vying for potential future market dominance, the one other notable thing these virtual worlds have in common is the cryptocurrency they use. While they all have their own unique tokens, all of those tokens lie on the Ethereum blockchain.

But why does Ethereum seem to be the blockchain of choice for metaverse developers? Well, one big reason is Ethereum’s widespread adoption across the crypto market, with many of the top-ranking digital currencies existing on Ethereum’s platform.

What separates Ethereum from Bitcoin is its use of smart contacts, which allows developers to build programs into the digital ecosystem. While there are other similar blockchains, like Cardano and Polkadot, Ethereum’s platform is more established.

Of course, the downside to Ethereum’s blockchain has to do with the fact that it is more established than recently built platforms like Cardano. Ethereum’s age has resulted in its slow transaction speeds and high transaction rates. However, this is currently being addressed and will hopefully be rectified in the upgrade of the network, Ethereum 2.0.

Bottom Line

Its hard to know exactly how dominant a part of everyday life the metaverse will be. Needless to say, it seems more to be a question of when rather than if.

One thing seems certain, however, and that’s Ethereum’s presence within the metaverse space.

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