Will 2022 be the breakout year for Metaverse?

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Will 2022 be the breakout year for Metaverse?

 Will 2022 be the breakout year for Metaverse?
Image source: © Denisismagilov | Megapixl.com

Highlights

  • The Nansen's 2022 Quarterly NFT Report stated that NFTs will continue to rule the roost over cryptos and are expected to give a 103.7% return when denominated in ETH. 
  • The world of NFTs could very well reach US$80 million by 2025, the report added.
  • The report further stated that the fast-growing Metaverse is one of the most volatile segments of the lot.

What will drive the non-fungible tokens (NFT) in the future? Well, that's the question that market enthusiasts seem to be asking these days. The NFTs saw a breakout year in 2021 with the sales going over US$17 billion, according to NFT data firm nonfungible.com. 

In 2022, several disruptions have already happened and in just four months’ time, a paradigm shift seems to be taking place with the world more inclined toward the metaverse. Alongside NFTs, Metaverse has managed to put its name in the ring through its ventures such as virtual real estate, games, and others.

Also read: Ellipsis (EPS) crypto: Why is it gaining attention today? 

According to the recently released Nansen's report, the world of NFTs could very well reach US$80 million by 2025. Currently, the NFT market is US$10,275,018,910 with a sales volume of US$43,022,575 as on CoinMarketCap. 

 The report at a glance 

The Nansen’s Quarterly NFT Report 2022 weighs NFTs in six parameters based on market cap, which is denominated in Ethereum, Nansen's NFT-500, Nansen Blue Chip-10, Nansen's Metaverse-20, etc. The report has stated that NFTs will continue to rule the roost over cryptos and are expected to give a 103.7% return when it is denominated in ETH and about 82.1% when denominated in US Dollars. 

In fact, even though the global markets were reeling under the inflation pressures and the aftereffects of Russia's invasion of Ukraine in February, the NFT-500 continued to register gains of over 5.9% in March 2022.

Also read: COTI (COTI) crypto: How high can it go after stablecoin launch declaration

Furthermore, it has also been an effective force multiplier for retail investors in Q1 2022. While the volatility affects sectors differently, Nansen's report revealed that the Blue Chip NFTs are less volatile as compared to others. 

NFT marketplace OpenSea's spectacular growth in 2021 and its continued success with collections, such as Doodles, and others, have made it jump on top of the ladder to establish itself as one of the Blue Chip NFTs. 

Metaverse: Most volatile of the lot

The report suggested that the fast-growing Metaverse is one of the most volatile segments at present, along with art NFTs. While the art NFTs are largely opinion-based or perception-based, Nansen suggests that assessing the prices of Decentraland and The Sandbox-led real estate could be tricky. 

Nansen's Blue Chips have witnessed a 50% YTD gain when denominated in Ethereum and a 23% gain when denominated in US Dollars. Even Nansen's Metaverse witnessed a 33% YTD gain when denominated in Ethereum and a 9.24% gain when denominated in US Dollars.

Even in the gaming ecosystem, Nansen's report indicates a drop in YTD performance. In fact, the gaming ecosystem witnessed a 30% YTD loss when denominated in Ethereum and a 42% loss when denominated in US Dollars.

Bottomline

Overall, Nansen's report shows that going forward, the sector will be dominated by the Blue Chip and Metaverse NFTs which will drive the growth path for the whole sector. Especially with the growth of both the sectors, it would be safe to say that just like last year, which was crucial for NFTs, the year 2022 could well be the breakout year for Metaverse. 

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