Despite allegations that there are few distinct active wallets on Decentraland, metaverse enthusiasm, investment, and development continue.
Initial analysis of DappRadar data on October 11 revealed relatively poor engagement rates for Decentraland, one of the most-hyped Web3 metaverses. The platform has a current market value of $1.2 billion, which stunned the community.
Shortly after the initial claim surfaced, DappRadar and Decentraland independently confirmed that the publicized number of fewer than 40 unique active wallets (UAW) did not accurately reflect network activity. At the time of writing, DappRadar’s tracker indicates that UAW is slightly over 600.
Following the event, a DappRadar study indicated that blockchain games and metaverse projects raised a total of $1.3 billion during the third fiscal quarter.
Nevertheless, if user involvement is poor, what keeps investors interested in the metaverse?
Robert Hoogendoorn, the head of content at DappRadar, noted that despite the reduction in crypto token values and trading volume in US dollars for metaverse land, the actual number of trades fell by just 11%.
This demonstrates that demand remains robust, he argues. Hoogendoorn also emphasized that involvement in the metaverse involves far more than simply signing in. It is also the activity of decentralized autonomous organizations (DAOs) and development teams using each other’s open-source software:
“It’s not a one-way stream from business to consumer, but a web of entangled stakeholders, builders, creators, users, investors, organizers and so on.”
Sam Hamilton, creative director of the Decentraland Foundation, remarked that it is evident that the space is still in its infancy. He proceeded by stating that it “may be startling,” but the figures do not prevent anyone from participating in this creative climate.
Hamilton is aware that many consider the metaverse to be nothing more than “useless amusement,” but in actuality, creators are constructing something much more substantial:
“When you spend your days building something as massive and impactful as the metaverse, it becomes very hard to be short-sighted and merely care about numbers.”
Yat Siu, co-founder and executive chairman of Animoca Brands, stated that unfavorable reactions to significant technical advances are nothing new, but he anticipates that they will change as the technology matures.
Siu emphasized that, from an operational standpoint, the decentralized metaverse is a superior business model since it is easier to collect funds and provide consumers with cool opportunities.
However, from the user’s standpoint, it is even more crucial, as products and services offer unprecedented levels of autonomy. Nonfungible ownership offers new advantages from digital commodities and data to give people a stake and a voice in the items and services they utilize.
“Blockchain is not simply a technological change but also one that enables socio-political change.”
Siu was previously cited as believing that GameFi will serve as the entry point for users into the metaverse.
While some crypto Twitter users questioned the value of the metaverse, developers and investors have shown little reluctance to create a digital cosmos. Constantly deployed new tools and events make the metaverse a more palpable experience.
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