NFT and Metaverse: what’s the connection?

The NFT is the first step towards the Metaverse, which enables users to experience virtual reality.

NTFS and Metaverse are the two new things in the crypto space that are gaining lots of traction, as more and more people are getting attracted to them.

It all started with NFTs that were the must-have things in 2021 and by the year-end then came Metaverse, which became very popular among crypto users that allow users to experience the digital world with a mix of virtual reality (VR) and augmented reality (AR).

What are NFTs

Non-fungible tokens (NFTs) are unique cryptographic tokens that exist on a blockchain and cannot be duplicated. It represents artwork, music, or any assets in a digital format and represents individuals’ identities, property rights, and more.

What is Metaverse

Metaverse is a three-dimensional digital art concept in which users enter through a virtual reality headset. In this digital world, users have a profile known as an avatar that can be customized as per the value you have in your account. These avatars keep on changing, just like a human body that experiences daily changes. 

Users can strengthen their avatars and improve their virtual lives with the daily activities they do in digital lives.

The avatar has its own life, just like the social surroundings we experience in our daily life. The users can visit hundreds of spaces, interact with other fellow members in the virtual space, and much more.

The Metaverse is gaining more adoption, as globally, users are investing in this and new space in the crypto sector has been created.

More than meme tokens

As this is more than memes tokens like Shiba Inu, BabyDoge, and others, Metaverse brings youth closer to the society they live in and are becoming popular among them.

This all started with Facebook announcing the name of the company from Facebook to Metaverse, and after the announcement, companies started entering the space with their own Metaverse.

Companies like Samsung, Walmart, Disney, Microsoft, and Chinese tech and gaming giant Tencent have announced their interest in the Metaverse space. 

Launch of Metaverse in 2003

It all started in 2003 when the world’s first virtual life project called Second Life started offering virtual avatars to users. It also had its own currency named Linden, but could not gain traction, as the ecosystem was not developed then.

In Second Life, users can do each and every activity that we do in our daily lives, but could not attract the attention of users as it is more of a social media profile than providing any real value to users.

Now, after NFTs have become a new asset class, many NFT projects have also decided to launch their own Metaverse, where users can use their NFTs as an avatar to play games on Metaverse and earn revenue.

Some Metaverse pays users to play their games and play-to-earn (P2E) games are becoming very popular today.

NFT interaction in the Metaverse

There are many use cases in Metaverse too, some projects are specifically focused on action games, cartoons, and real estate.

The classic example is Decentraland (LAND), a virtual world where users can buy digital real estate, and all lands are NFTs, which are based on blockchain and provide immutable evidence of ownership.

Not only land, but users can also buy NFT shoes, NFT designer furniture, and various things that can be digitally unique. 

NFTs are also important in the Metaverse for creating exclusive environments and enhancing the digital community and social experiences. 

When NFT was launched it was more for art creators, now it has opened to new sectors and allowed more and more people to enter the space that they can exploit to gain financial independence. 

To be an $800 bn industry by 2024

According to a Bloomberg Intelligence report, Metaverse will be an $800 billion industry by 2024.

Online game makers, social media companies, and live event promotions may compete for the growing slice of the 3D virtual social worlds, a concept known as the Metaverse. 

Rising core game software service, advertising, and hardware sales as well as opportunities to bring live events such as concerts into virtual worlds and capture part of the advertisement revenue earned by social media companies shape the future of the digital world.

Grayscale and JP Morgan have also said that they see huge potential in Metaverse and pegged it as a $1 trillion market, but have not said by when.

Today, Metaverse’s market capitalization is around $28.34 billion with 24 hours trading volumes of $3.5 billion. As of now, there is over 210 Metaverse project, of which MANA’s market capitalization is $8.8 billion, followed by ApeCoin (APE), maker of BoredApe NFT with $3.3 billion, The Sandbox (SAND) with $3.1 billion, according to CoinMarketCap. 

NFTs have definitely taken to the next level, as users can use their assets in Metaverse and experience new technologies. 

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Disclaimer: This article is for informational purposes only. The information does not constitute an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Klever.Finance does not provide financial, tax, legal, or accounting advice. There is no responsibility on the part of the company or the author for any loss or damage arising from or related to the use of or reliance on any content, goods or services mentioned in this article.

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