The Metaverse is Dead Long Live the Metaverse!

In November 2021, the crypto world was abuzz with excitement as the market capitalization of the “big four” metaverse projects soared to an astonishing $16 billion. The terms “Metaverse,” “GameFi,” and “Play-to-Earn” dominated headlines and conversations. Fast forward to September 2023, and the landscape has dramatically changed. 98% of metaverse token holders are now grappling with losses, leaving us to ponder: What went wrong?

A Bubble of Newness:

It’s essential to consider whether it’s reasonable to value an entire industry based on a bubble created by the novelty of a technology. The crypto space is notorious for its volatility, and early exuberance can lead to unrealistic expectations. The meteoric rise of metaverse tokens in 2021 may have been driven more by hype than genuine utility.

Real Price vs. Market Position:

The real price of an asset is where the market positions it. In the case of metaverse tokens, the initial euphoria may have inflated their value beyond what the market ultimately deemed sustainable. As investors rushed in, the prices skyrocketed, but the correction was inevitable.

Hype vs. Utility:

Did the “big four” metaverse projects truly offer substantial utility, or were they simply riding the wave of hype? The answer to this question may lie in the criticisms they faced, from security and privacy concerns to issues with community governance and a lack of long-term HODLing incentives. These factors undoubtedly contributed to their downfall.

Outdated Models:

Another consideration is whether the prime movers in the metaverse space found themselves stuck in unsustainable operating models and outdated software designs. The fast-paced evolution of blockchain and metaverse technology demands adaptability. Projects that fail to keep up risk falling behind.

Learning from Mistakes:

Have the organizations that continued building during the bear market learned from past errors? It’s possible that they now believe the current pricing of NFTs reflects their real value. Efficient and lean models could be the key to delivering on the initial aspirations of the metaverse, where utility and functionality surpass hype.

Commercial Benefits Overlooked:

Early metaverse developments may not have focused on delivering benefits to commercial brands or the demographic that would access a metaverse or blockchain game. This oversight may have hindered their ability to create sustainable ecosystems that cater to a broader audience.

The Metaverse Renaissance:

As we declare “The Metaverse is Dead, Long Live the Metaverse!” we must recognize the current statistics and pivot toward a new narrative. While the “big four” may have faltered, the metaverse concept is far from over.

Benefits to Businesses:

The future of the metaverse lies in its ability to efficiently target the correct demographic for businesses. The mistakes made by the early pioneers should serve as lessons. Commercial brands can now enter the metaverse with a more refined strategy, leveraging the lessons of the past to create value for both themselves and their users.

The Promise of Real Commercial Utility:

The hype-driven rise and fall of metaverse tokens should not deter us from recognizing the immense potential of this technology. The real value of the metaverse lies in its ability to offer tangible benefits to individuals and businesses. It’s time to shift the focus from speculation to practicality.

In conclusion, the metaverse is not dead, but it is evolving. The lessons learned from the past will shape a more mature and sustainable metaverse ecosystem. Businesses should embrace this transformation, for in the metaverse, the future of commerce and interaction awaits those who understand its true potential.

Carl Henry
The CardanoVerse Metaverse
http://thecardanoverse.com/