As the cryptocurrency and blockchain markets mature significantly, the rapidly evolving Non Fungible Token (NFT) and Metaverse are attracting attention. NFTs are becoming a major part of his Web3, and Metaverse is steadily gaining popularity in both consumers and businesses.
The NFT is said to be the engine that powers the Metaverse, so the two are closely related. The United Arab Emirates responds to his reputation as one of the earliest technology adopters in these areas. The number of people who own NFTs is more than double the world average, and the country will be a major player in the Metaverse.
But what is happening with NFTs and the Metaverse now, and where are we headed?
Exponential growth of NFT
NFT’s trading volume, users and active collections all surged through 2021, and the term NFT earned the coveted title as “Word of the Year” in the Collins Dictionary. And the momentum continues, with a Chainalysis State of Web3 report finding that collectors transferred more than $37 billion of his money to his NFT marketplace between January and May this year. doing. This puts it on track to exceed the $40 billion total in 2021.
In general, NFT activities have peaks and valleys, and marketplaces often enter periods of growth, decline, and recovery due to global trends and levels of user demand.
Even with these fluctuations in mind, the number of active NFT buyers and sellers in the market has steadily increased since the second quarter of 2020, with a quarterly increase and before the fall in the second quarter of 2022. I am. Since March 2021, the number of active NFT collections in OpenSea has also steadily increased to over 4,000 in late April 2022.
NFT and Metaverse
NFTs allow people to own digital assets such as images, audio, and video, and sell, buy, and transfer items. Within the Metaverse, it is also possible to own virtual real estate. Many brands, gamers, and individuals are already treating the Metaverse as a living reality, which is reflected in virtual real estate prices. Blockchain-based virtual real estate prices rose 879% from September 2019 to March 2022, while real estate prices rose 39%.
In the United Arab Emirates, brands are rapidly adopting the Metaverse, supported by government initiatives such as the Dubai Metaverse Strategy. It aims to increase the Metaverse sector’s contribution to Dubai’s economy to $ 4 billion by 2030 and increase Dubai’s contribution to GDP. 1 percent. Etihad Airways has also released his first non-fungible token (NFT) collection, his EY-ZERO1.
The collection of 2,003 limited edition collections includes Etihad’s Manchester City FC, which offers many travel and lifestyle benefits. Dubai’s stunning Museum of the Future is also working with Binance NFTs to develop a variety of virtual assets, with the first NFT decline expected in the coming weeks.
Because the Metaverse is an emerging space, the long-term price of virtual real estate depends on current and potential utilities such as access to exclusive communities and events. So far, this has been a major driver of NFT demand, and the current sign is that it intersects with virtual estate sales.
The future of the Metaverse depends on how well everything works together. It remains to be seen if brands will create the metaverse in a way that works seamlessly with current metaverse projects and blockchain technology. There are some early signs that this may be the case. For example, Epic Games is accepting crypto games into its store.
This isn’t particularly important for today’s metaverse, but it’s a big step for games with a similar purpose. Therefore, it will likely smooth the way for other sectors to create similar blockchain-based metaverse companies.
Interoperability also accelerates the adoption of technologies such as virtual reality (VR). The more realistic and immersive the experience, the more likely it is that NFT-based ownership will feel real and concrete to the user. Therefore, the faster VR technology grows, the more likely it is to be suitable for Metaverse products.
Revenue generated from VR-based games is growing rapidly and the Middle East and Africa (MEA) is set to take advantage of this, with the VR market in the region projected to grow at a CAGR of 43.5%. It is set to reach $23,041.99 million in 2020 and 2028.
Several MEA brands have incorporated VR into their products. The Dubai Mall’s VR Park, for example, propels visitors into space and takes them on a journey into the future in a truly immersive experience.
Prepare for the future
The Metaverse is on its way, with VR technology, virtual real estate and blockchain all working together to bring us closer to meaningful digital ownership. NFTs sit at the heart of all these elements and need to add more value through utility than just collectability to become a major player in defining ownership in the metaverse. It’s an interesting time for the Metaverse world, with UAE brands leading the way in adopting these groundbreaking technologies.