Is the Metaverse Dead? No, It’s Evolving

The metaverse was often seen as the future of the blockchain technology. This trend accelerated in 2021 as blockchain networks grew more popular. In the same period, companies like Meta Platforms, Nvidia, and Unity Software made significant announcements about the industry. Now, a common question among industry watchers is: is the metaverse dead?

What is the metaverse?

The metaverse is a technology that makes it possible for people to have immersive interactions in the digital ecosystem. In it, people can do several things, including playing virtual games, attending events, doing commerce, and attending meetings.

Metaverse is more immersive than the current virtual networks like Zoom and Microsoft Teams. For example, instead of having a plain virtual meeting, users can have immersive ones. Earlier this year, fashion heavyweights like Balenciaga and Forever 21 made headlines by launching the first ever virtual fashion event.

The metaverse has been made possible by several factors. For example, internet speeds have increased dramatically in the past few months because of technologies like 5G. Similarly, faster computer processors have made it possible for these technologies to work. 

Is the metaverse dead?

After generating so much hype in 2021, the industry appears to be dying. For one, the Metaverse stock price has plunged by more than 50% since the company changed its name to reflect the metaverse. And media reports have warned that only a small number of people are using the company’s metaverse products.

At the same time, metaverse projects like Decentraland and Sandbox have seen a sharp decline in activity. Decentraland’s metaverse has less than 1,000 members while Sandbox has seen the level of activity crash. As a result, MANA and SAND tokens have plunged hard this year.

At their peak, users were spending as much as $4 million buying land and other NFTs in its ecosystem. Today, the number of purchases has been in a strong downward trend.

Analysts believe that although the metaverse is not dead, it will continue being a niche product. Others believe that the metaverse is still in its early days and some products will likely push it higher in the future.

In a recent article, I wondered whether NFTs were dead. In it, I concluded that NFTs were not dead. Instead, they will evolve to become a smaller and stable industry. The same is true with the metaverse in that it is currently evolving.