Metaverse and NFT developments are often followed with skepticism. As with many internet developments before, Web3 is looked at by some consumers as a fad topic. NFT collections such as Bored Ape and Cryptopunks are selling for millions of dollars and an NFT named “The Merge” sold for more than 91 million dollars making it the highest paid piece of artwork in history. Likewise, Facebook changed their name to Meta and companies are being sold for very high valuations in hopes of Web3 paying off in the future. Despite all of this, a recent McKinsey report showed in detail where capital is being spent and how the market is shaping out. While consumers may still have their doubts, enterprises are racing to get ahead as the new development continues. This is an overview on how the market is looking for Web3 and why it is very real.
In short, the Metaverse is taking concepts from video games (existing virtual societies) and creating use cases with blockchain technology being the infrastructure around commerce and identity. In the Metaverse, people will be able to enjoy a variety of experiences and tools across industries and platforms. What sprung this idea into reality was the $10 billion investment Meta made towards VR and other metaverse hardware. Similarly, Microsoft acquired Activision Blizzard, a leading gaming company, in order to develop infrastructure and building blocks towards the metaverse. This caused a ripple effect across large enterprises, as now we see companies such as Nike, Gucci, Disney, Roblox, Epic Games, and others preparing themselves by investing in Web3 capabilities. If that’s not enough, global financial institutions such as Goldman Sachs and JPMorgan are investing heavily in blockchain technology. McKinsey states “More than $120 billion has flowed into the metaverse space already in 2022—more than double the $57 million of 2021.” Some key highlights among the listed companies:
As Web3 continues to grow and mature, we will see more and more adoption of its capabilities appear in enterprises. Similar to other internet developments, there are skeptics. As we see more capital being pumped into its development and companies preparing, we can start to see how and why Web3 will be used and envision a world where its capabilities are realized.