In 2021, the metaverse generated tremendous hype among investors and companies, but its popularity has waned recently. We explore the reasons for this trend and possible future prospects.
The Decline of Metaverse Popularity
According to CryptoSlate, the metaverse market has dropped from $23.54 billion to $4.9 billion. This significant decline has driven major investors to refocus on areas like AI, DeFi, and real assets. Tracy Jin, COO of MEXC, attributes the decline in interest to the mismatch between expectations and the actual results of technological projects.
Investor Activity in Token Markets
Despite price drops, popular tokens like Sandbox (SAND) and MANA continue to be in demand. Glassnode's report indicates that some investors are actively buying tokens at reduced prices and adhere to a long-term hold strategy. This indicates persistent interest in metaverse projects even amid overall market corrections.
Future Prospects for the Metaverse
While institutional investors have moved away from the metaverse market, major tech companies like Meta, Apple, and Nvidia continue to invest in VR and AR technologies. This suggests the possibility of the concept's evolution and prospects for future blockchain projects capable of attracting new users and regaining investor confidence.
The metaverse is undergoing significant changes. Although the initial hype has cooled, persistent investor interest could contribute to its position's recovery. It's important to monitor developments and new initiatives that may alter the market's course.
