Crypto

Metaverse Will Be A $5 Billion Opportunity, But A Crypto Sector Will Remain Volatile: Consulting Giant

Global management consultancy McKinsey & Company says the metaverse has the potential to generate value equivalent to that of the world’s third-largest economy, Japan.

In a new report, McKinsey says that based on metaverse consumption and use cases, the nascent sector could be worth $4 trillion to $5 trillion by 2030, split across multiple markets.

“We estimate it may have a market impact of between $2 trillion and $2.6 trillion in e-commerce by 2030, depending on whether a base or upside scenario is done. Similarly, we estimate it will have a $180 billion to $270 billion impact on the academic virtual learning market, a $144 billion to $206 billion impact on the ad market, and a $108 billion impact million to $125 billion in the gaming market. However, these effects can manifest themselves in very different ways throughout the value chain.”

According to McKinsey, companies that are now taking advantage of the metaverse could be building lasting competitive advantages. The report says that executives currently consider cryptocurrencies, artificial intelligence, and virtual/augmented reality as the top three technologies in the metaverse.

The report also says that, along with cryptocurrencies and non-fungible tokens (NFTs), one sector in the metaverse space will remain volatile in the short term: the market for virtual real estate assets.

“However, the price increases are driven by the scarcity that is designed into current platforms like Decentraland and The Sandbox. That increases the investment risk involved, even if the organizations making the investments aim to profit from their virtual real estate, for example, by using it as their metaverse base of interactions with consumers.

Their bet is not just mass adoption of the metaverse in the coming years, but also adoption of the specific platform on which virtual land is purchased (given almost zero interoperability between worlds for now).”

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Featured Image: Shutterstock/Andrey Suslov

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