Metaverse and NFT Hype Cycle Is Over: What to Expect in 2023?

Metaverse and NFT Hype Cycle Is Over: What to Expect in 2023?
  • A new report from Activate Technologies shows that the hype cycle for NFTs and the Metaverse is over, and both markets will continue to mature shortly.
  • NFTs are becoming less of an investment and a community-building tool, while the Metaverse ripens for specific business investments.
  • The NFT market in the United States is still geared towards the younger and more affluent demographic.

A new report from Activate Technology shows that the non-fungible token (NFT) and Metaverse are over and that both sectors will need a specific corporate interest in the future. The future holds new NFT use cases to help companies build brand loyalty, while the Metaverse requires sustainable business development.

NFT use will change to community-building

NFTs have passed their maximum bubble, according to a new report from the company. Consequently, the publicity surrounding the space will gradually decrease. NFTs are becoming mature products, with blockchain and Web3 tokens bringing more utility. Also, use the freedom to create communities around your brands. Buyers will also benefit from the sense of ownership.

Starbucks already offers the Odyssey experience, which uses collectible NFT stamps that give owners access to unique coffee experiences. Additionally, the report revealed the changing demographics of the current NFT market players. Participants are those who “have researched, discussed, browsed, bid, bought, displayed, sold, or created NFTs in the past 12 months. US participants increased from 12% in 2021 to 18% in 2022.”

Even so, less than a third of the US population does not know what NFTs are. 43% of NFT participants were from wealthy households with incomes of $100,000 or more.

Sales of NFTs in primary and secondary markets, excluding LooksRare, exceeded $23 billion in 2022. Most NFT owners now buy them to feature on social media and collections. NFT as speculative investments. Just 51% of adults 18+ bought them as an investment in 2022, compared to 76% last year. Nineteen percent more shoppers use them for display purposes, while another 4% see them simply as digital to collect. They buy 12 percent less because of their novelty. They buy another two percent to support an artist or athlete.

Foundation for the Metaverse is set.

According to Activate Technology, the NFT bubble is over, and the metaverse hype cycle is over. Companies need to recognize opportunities and deploy business resources in this space. Companies must focus on interoperability between virtual worlds to fully take advantage of the Metaverse. The foundation of the Metaverse has been developed through immersive virtual worlds in games for over twenty years. Approximately 77% of players in the US in the last year.

They have taken on the task of creating and customizing avatars and purchasing virtual goods. Gamers in China, Japan, and South Korea spent 30 hours a month playing games like Roblox, Minecraft, and Fortnite with certain Metaverse elements. These elements include an immersive experience, social interactions, mixed reality, identity, and an in-game economy. Virtual and augmented reality will not achieve mass adoption and will not be the future of the Metaverse. “We expect significant and sustained investments in innovation over the coming years,” the report concluded.

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