Tech

Metaverse NFTs, land and avatars are growing fast, says Nansen

A year ago, when cryptocurrencies and NFTs burst into the mainstream, the sheer novelty of blockchain was enough to fret about it. But a year later, the public seems to be searching for the next great synthesis of blockchain technology – and that could well be the Metaverse.

according to a Report by blockchain analysis group Nansen, metaverse-linked NFTs led the market in Q1 2022, with investments in virtual land and real estate, avatars and assets generating an average return of 129.4%. That beat returns for blue chip projects like Azuki, Clone X and Doodles (50.9%), as well as gaming NFTs and arts NFTs, both of which saw declines in value overall.

At the same time, however, Metaverse NFTs were also the most volatile – nearly four times the strength of the top blue chip collections (which proved to be the most stable, having in some ways proven themselves in combat). In fact, “many Metaverse buyers act like speculators,” writes Nansen. That’s as a gold rush materialized in the evolving virtual world, with individual miners and big-name corporations alike staking claims in the new Wild West. Hyped brands like Gucci, Adidas, Care Bears, and Atari already own land — but they’re being joined by more stuffy, buttoned-down companies like JP Morgan, which has a lobby in Decentraland (a giant virtual mall that has space). sold for several million dollars) and HSBC, which was able to open banks in the sandbox.

While much of the crowd is centered around areas like Sandbox, Somnium Space, Cryptovoxels, and Decentraland, the competition continues to grow with Meta’s Horizon Worlds Revealing earlier this week It would begin testing tools for developers to sell virtual items and experiences within its platform. Meanwhile, companies race to develop digital recreations of iconic real-world travel destinations like Rodeo Drive in Beverly Hills or Crypto Valley — the Web3 version of Silicon Valley.

“As more artists, creators, builders and community members innovate with the NFT market, we believe we will see a realignment of which sectors are becoming its drivers,” says Louisa Choe, researcher at Nansen. As the Metaverse has gained ground, NFTs as a whole have already outperformed cryptocurrency tokens, with Nansen’s “NFT 500” index up 49.9% year-to-date, while Bitcoin is down just 1.9% and Ethereum is down 7.9% is.

If it still feels pretty risky, that’s probably because, as many analysts agree. But NFTs can’t linger too long as hundred-thousand-dollar profile pictures — Web3 needs to refresh its next big thing, and the Metaverse beckons. It remains to be seen, of course, whether these bets will pay off.

https://www.fastcompany.com/90740499/metaverse-gold-rush-virtual-land-sales-and-avatars-are-leading-the-nft-market?partner=feedburner&utm_source=feedburner&utm_medium=feed&utm_campaign=feedburner+fastcompany&utm_content=feedburner Metaverse NFTs, land and avatars are growing fast, says Nansen

JACLYN DIAZ

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