Despite the relentless bear market, metaverse projects have managed to capture 44% of total web3 investment by 2023.
TL;DR
- Metaverse dominates VC investment, with $707 million poured into projects in H1 2023, representing 44% of web3 investment.
- The AR/VR sector holds promise for the metaverse as tokens experience a 5% increase following the launch of Apple’s Vision Pro headset. However, temporary setbacks occur when regulators classify tokens as securities.
- Overland digital trade volume shows a significant increase in the first quarter, the highest level since 2022. But trade volumes are down 81% in the second quarter. Despite this, the metaverse industry continues to grow.
Metaverse investments dominate
Investors can’t get enough of the metaverse as nearly half of all VC investments will be deposited in this sector in the first half of 2023. DappRadar’s latest report reveals that venture capital firms have invested $707 million in metaverse projects, capturing a 44% share of total web3 investment.
Interestingly, the report shows how the augmented reality/virtual reality (AR/VR) industry could significantly boost the metaverse. When Apple launched its Vision Pro headset on June 5, metaverse tokens such as SAND and MANA experienced a 5% increase. However, the momentum stopped when the US Securities and Exchange Commission classified these tokens as securities, causing a temporary setback.
Digital land, a valuable asset in many metaverse networks, had a great start to 2023. Trading volume grew to $311 million in the first quarter, the highest level since May 2022. In addition, digital land sales grew 83%, setting a record was reached a high of 146,690. Unfortunately, the second quarter saw a steep 81% drop in trading volumes.
Despite these challenges, the metaverse industry continues to grow steadily, with Yat Siu, co-founder of Animoca Brands, noting the rise of Bitcoin Ordinals. Users create these NFT-like assets by using an inscription technique on the Bitcoin blockchain.
In addition, partnerships such as the one between Animoca and Mitsui, a well-known Japanese trading firm, show the growing interest in the metaverse and web3 in Japan. As the metaverse grows, investors are left with its potential, making investments even with fluctuations in trading volumes.