Crypto transactions on metaverse platforms are growing faster than the rest of the crypto industry, shows a June report by Kraken. Metaverse was also found to be the least volatile of all other crypto platforms.
The report claims that the metaverse sector outperformed every other crypto platform with a 395% year-on-year (YoY) return. In comparison, return from exchanges grew by only 6% YoY, while last year’s return from BTC (Bitcoin) fell by 13%, ETH (Ethereum) fell by 25%, DeFi by 33% and Meme Coins fell by 62%.
During this period, the various metaverse platforms including Decentraland (MANA) grew by 41%, Sandbox (SAND) grew by 470%, and Axie Infinity (AXS) grew by 511%.
Though crypto tokens in the metaverse have grown, they have not been impervious to the recent downturn in the crypto industry, which wiped out close to $800 billion in market value in a month, as per CoinMarketCap.
In the last 30 days, return from tokens on metaverse platforms fell by 42%, DeFi fell by 33%, Meme Coins fell by 39%, and BTC by 17%.
With more companies joining the metaverse and rolling out non-fungible tokens (NFTs), crypto transactions on these platforms have also soared. Prices of virtual lands on metaverse have increased by 400-500% in the last year, as per industry estimates. Some of them even sell for as much as real-world property.
Janine Yorio, the owner of a virtual real estate development company, Republic Realm, told CNBC in January that her company sold 100 virtual private islands in 2021 for $15,000 each. The value of each such island has grown to $300,000 this year, she added.
Experts have attributed this growth to the buying up of space by brands and companies to set up virtual stores and other experiences for customers. In June 2021, a land parcel was sold on Decentraland for $913,000 and was converted into a large virtual shopping centre by developer Everyrealm.
Interest in the metaverse is also growing in India. Several celebrities have already created their own metaverse to sell NFTs and interact with fans. IT major Tech Mahindra has also announced foray into metaverse with TechMVerse platform. Early this week, MG Motor India also announced that its launching its metaverse store called MG Verse where customers can check new cars virtually and buy NFTs.