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- The Metaverse would then likely infiltrate every sector in certain way in the coming years, with the potential market estimated at over $1 trillion in annual revenues, according to the report, which also notes that $54 billion is spent on virtual goods each year, which is more than twice the amount spent on music
- Between June and December of last year, the average price of virtual land doubled from $6,000 to $12,000, according to the analysis, which estimates that in-game advertising spending will reach $18.4 billion per year by 2027.
- According to JPMorgan, large brands are driving increased mainstream adoption of the Metaverse, citing Adidas and Nike’s moves to produce NFT-based products and shopfronts, as well as Samsung’s opening of a Metaverse store, as examples.
JPMorgan declares Metaverse a $1 trillion opportunity, constructing a virtual lounge in the popular blockchain-based realm of Decentraland.
The Potential Market Estimated At Over $1 Trillion In Annual Revenues
A roaring tiger and a digital portrait of JPMorgan CEO Jamie Dimon greet visitors to the lounge, which is located in Decentraland’s Metajuku mall. Players can watch an executive’s presentation on bitcoin economics if they go upstairs. The onyx lounge, called after JPMorgan’s in-house blockchain payments system, was unveiled alongside a JPMorgan paper outlining the types of business prospects that can be found in the Metaverse.
The Metaverse would then likely infiltrate every sector in certain way in the coming years, with the potential market estimated at over $1 trillion in annual revenues, according to the report, which also notes that $54 billion is spent on virtual goods each year, which is more than twice the amount spent on music. Between June and December of last year, the average price of virtual land doubled from $6,000 to $12,000, according to the analysis, which estimates that in-game advertising spending will reach $18.4 billion per year by 2027.
A surge of independent producers using Web3 to sell their work in innovative ways has been identified by JPMorgan as a driving force behind the Metaverse’s new economy. This democratic ownership economy, when combined with the possibility of interoperability, has the potential to unlock enormous economic opportunities, as digital goods and services are no longer bound by a single gaming platform or brand. According to JPMorgan, large brands are driving increased mainstream adoption of the Metaverse, citing Adidas and Nike’s moves to produce NFT-based products and shopfronts, as well as Samsung’s opening of a Metaverse store, as examples.
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Pointing To Flaws In The Overall User Experience, Poor Avatar Performance, And Difficulties With Commercial Infrastructure
As if to emphasise the point, Disney announced this morning that Mike White, a new CEO, has been appointed to lead the company’s journey into the Metaverse. Disney is trying to expand its storytelling prowess into the digital sphere, according to a memo from Disney CEO Bob Chapek. We have the opportunity now to connect those universes and establish an altogether new paradigm for how people experience and participate with our tales, Chapek added.
However, the JPMorgan assessment wasn’t entirely encouraging.
Despite much enthusiasm about the potentials of the Metaverse, in order to allow its maximum potential for engagement, community building, self-expression, and commerce, important points need to be further developed and matured, the report stated in a section titled Navigating hype vs. reality, pointing to flaws in the overall user experience, poor avatar performance, and difficulties with commercial infrastructure.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
