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2023 will be the end of the Metaverse and NFT hype cycle

A new report from Activate Technology says that the hype around non-fungible tokens (NFTs) and the metaverse have passed, and both will need targeted corporate interest in the future.

In the future, NFTs will be used in new ways that will help businesses build brand loyalty, while the metaverse will need businesses to keep growing.

The focus of NFTs will change to building communities.

A new report from the company says that the NFT bubble has reached its peak. Because of this, the space will lose some of its appeal over time.

As blockchain and Web3 become more useful, NFTs will become mature products. The space will also be used by companies to build communities around their brands. Buyers will also feel like they belong to the group.

The Starbucks Odyssey experience is already available. People who collect NFT stamps can use them to get into unique coffee experiences.

The report also showed how the NFT market participants’ age groups are changing. People who “researched, talked about, browsed, bid on, bought, displayed, sold, or made NFTs in the past year” are considered participants.

In 2021, only 12% of the participants were from the United States. In 2022, that number went up to 18%. Less than one-third of the people in the U.S. still don’t know what NFTs are. 43% of NFT participants came from families that made at least $100,000 a year.

With the exception of LooksRare, NFT sales on both primary and secondary markets topped $23 billion in 2022. Most people who own NFTs now do so for social media and collection reasons. In the beginning of the NFT cycle, people bought and sold NFTs as speculative investments.

Only 51% of adults 18 and older bought them as investments in 2022, down from 76% in 2021. 19% more buyers are putting them on display, and 4% more are just collecting them as digital items. Twelve percent less of them are bought because they are new. People are buying them 2% more often to show their support for an artist or athlete.

The Metaverse starts to take shape

Activate Technology says that not only has the NFT bubble burst, but so has the metaverse hype cycle. This means that businesses need to find opportunities in this area and decide how to use their business resources. To get the most out of the metaverse, companies must now make interoperability between virtual worlds a top priority.

Immersive virtual worlds in video games have been laying the groundwork for the metaverse for more than 25 years. In the past year, approximately 77% of American gamers have engaged in non-gaming activities within games. They have created and customized an avatar and purchased virtual goods.

China, Japan, and South Korea gamers have collectively spent 30 hours per month playing metaverse-infused games such as Roblox, Minecraft, and Fortnite. These components consist of an immersive experience, social interactions, mixed reality, identity, and a game economy.

Virtual reality and augmented reality won’t be widely used, and they won’t be the future of the metaverse. At the end of the report, it said, they expect a lot of money to be spent on innovation over the next few years.

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About MahKa

2023 will be the end of the Metaverse and NFT hype cycleMahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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