Will Metaverse decouple from the Bitcoin market? The player answers “yes”

The Metaverse will expand rapidly in 2021 and will explode in 2022. With games such as Axie Infinity and Metaverse platforms such as The Sandbox performing exceptionally well in a large active user base, this emerging “play to earn” game is bearing fruit.

However, Bitcoin failed to hit a record high in 2021 as many expected. In recent weeks, the overall market has stagnated, but there are some cryptocurrency assets that have outperformed Bitcoin, that is, the metaverse and gaming sectors.

The leader of the Metaverse, The Sandbox and its competitors, such as Decentraland, Illuvium, UFO Gaming, Superfarm and Big Time, are all competing for their own share of the Metaverse, the most important of which is users.

With the opening of the Alpha environment, users have been flocking to The Sandbox at an exponential rate. In November, The Sandbox announced on their Medium channel that their user base has grown by 500% this year, with 500,000 wallets, and $93 million raised for development. It is quickly becoming the most important Metaverse built on the blockchain, selling digital plots at a premium.

Celebrities such as rapper Snoop Dogg are building in-depth interactive experiences with fans, and these fans are joining the Metaverse to approach their idols. Major real-world brands such as Adidas are also establishing their own brand experiences and special events in The Sandbox, and preparing for other platforms.

At the same time, Bitcoin and other markets failed to set a record high in the fourth quarter of 2021, as many analysts and investors expected.

Comparing the charts of the past 30 days, we can see the difference between the overall market decline shown by Bitcoin and the booming Metaverse/game market:

Will Metaverse decouple from the Bitcoin market? The player answers "yes"

Will Metaverse decouple from the Bitcoin market? The player answers "yes"

The cryptocurrency retail investor market is full of young investors. Many of them are game players. The prospects and goals of these investors may be different from those of traders in the decentralized financial sector.

Game players are very serious about experiencing another reality in the Metaverse. They don’t just want to play games, they want to be immersed in the virtual world. They want to avoid their ordinary lives, pursue the infinite fantasy of the Metaverse, and display their hard-earned NFT assets on the expensive digital land.

As Axie Infinity has become the most popular crypto-based game in 2021, The Sandbox is becoming the market leader of Metaverse, because they already have many users active on this platform, but soon there will be Metaverse, NFT And game competitors such as UFO Gaming and SuperFarm are starting to release their platforms.

Elliot Wainman, founder and CEO of Superfarm, also believes that all signs indicate that metaverse and gaming technology will stand out from other markets: “Crypto games will be completely decoupled in 2022, and there will be no more cycles.”

Another sign that Metaverse is moving away from Bitcoin is that it is very keen on venture capital. Paradigm, BoostVC, and other venture capital firms are injecting large amounts of venture capital funds into games and Metaverse companies.

So, how can we prevent Metaverse from delinking from Bitcoin’s market dominance? High valuation.

Although venture capital is pouring into Metaverse like flowing water, for most of these companies, there is still a long way to go to truly develop their own platforms. Full-featured immersive games and environments with a large active user base can take years to build. At present, most games are still in beta at best, and some games have not yet provided any products to the public.

In order to attract more investors, some game studios have produced short game videos and screenshots, but have not completed behind-the-scenes development, and have few active users, creating an overvalued asset.

Venture capitalists bear huge risks. The fact is, history shows that 3A-level games often take several years to fully develop. This will cause potential trouble for investors in the medium term, because the lack of actual gameplay may weaken investor interest, and some people may realize that these platforms are not as implied by their financing (and marketing). important.

The good news for investors is that for now, regardless of other markets, especially Bitcoin, Metaverse seems to be moving forward.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/will-metaverse-decouple-from-the-bitcoin-market-the-player-answers-yes/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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