Global Metaverse Asset Marketplace Market Size (2024 - 2030)

The Global Metaverse Asset Marketplace Market was valued at USD 139.88 million in 2023 and is projected to reach a market size of USD 350.02 million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 14%. 

Industry Overview

A Metaverse is a virtual reality simulation. In these virtual worlds, users may attend concerts, visit art galleries, and travel to exotic locations using a virtual self — a custom-made avatar that can appear as they choose. There are also several Metaverses. And several firms are working on these, each with their own set of network protocols. All of these Meta-verses are working toward the same goal: allowing more overlap between our real and digital lives. Cryptocurrencies are digital assets that are used as a medium of exchange and a store of value in these virtual worlds. While cryptos are primarily used for handling transactions and other tasks related to the physical world, cryptocurrencies are digital assets that are used as a medium of exchange and a store of value in these virtual worlds. There are also NFTs, which allow one-of-a-kind digital artworks to be purchased or sold on the blockchain. When it comes to paintings, only a few individuals can claim to own a Monet. Others can manufacture prints of the original, but they aren't as good as the original.

For NFTs, the same logic applies. The ownership of the NFT is confirmed on the blockchain through multiple network operations, which unequivocally confirms the true owner of any work of art. While everything may be random, there is a connection between these blockchain occurrences. Modern Blockchain developers have built NFT Marketplaces on a variety of blockchains, including Polygon, Solana, Flow, BSC, near, and others. The building of a Metaverse NFT marketplace is a technological process that involves establishing an NFT marketplace that supports in-game assets, virtual lands, characters, virtual houses, and other items. Users may quickly tokenize their assets and display and resell NFTs in the metaverse NFT marketplace, which provides a rich interactive experience. Metaverse NFT isn't limited to a single set of features; it's gone above and beyond your wildest expectations.

In the Metaverse, NFTs add value by boosting social interaction and identification. Because the Metaverse will allow interaction through specific (unique) avatars that will come to represent our virtual selves, building NFTs of such avatars will be important (for example the avatars of high-end celebrities). Currently, various NFT avatars are trendy (as well-known celebrities are progressively purchasing Cryptopunks and the Bored Ape Yacht Club collection), and many celebrities are purchasing them. The market for NFT avatars is growing, indicating that the general public is becoming more interested in the individually made digital images that are used as profile photographs on social networking sites. These NFT avatars provide users a sense of belonging and digital prestige, which will only benefit them in the future.

Impact of Covid-19 on the Industry

The outbreak of the pandemic in 2020 wreaked havoc on schools and institutions. In the middle of the uncertainty, they were compelled to cancel physical sessions, opting instead for online Zoom and Microsoft Teams-based classes. Students, instructors, and even parents became used to the new method of instruction. Classes on cell phones or computers have gradually become the new standard for education. Online education has become the new normal, and new opportunities are opening up for a new era of creativity. Experiential virtual learning systems are playing a critical role in letting students participate in highly dynamic and engaging live classroom sessions throughout the continuing epidemic, with Metaverse as the future. It also provides new opportunities for kids, instructors, and parents to communicate and meet while remaining safe. Students and teachers have more freedom in timing the curriculum, conducting meetings, and supplementing practical learning experiences because of virtual universe technologies and blended learning approaches. Experiential platforms have benefited the education industry in particular since they have not just individualized experiences but also created new doors of possibilities.

Market Drivers

The Cost-Effectiveness of the digital assets will drive the market growth

Every month, and possibly every day, businesses do hundreds, if not thousands, of transactions. Businesses may use digital assets to conduct more cost-effective transactions. It's crucial to remember that transaction fees might be cheap when using digital assets, but transaction prices can vary greatly based on a variety of circumstances. As a result, it's critical to double-check what processing costs, "gas" fees, and the spread are before engaging in digital asset transactions.

When transferring and receiving digital assets through third parties like Coinbase, Coinomi, and Blockonomics, for example, you'll have no option but to accept their spread, and transactions may also be subject to processing fees. It is critical to examine the spread charged by the counterparty when beginning P2P transactions. Furthermore, several tokens charge gas costs for processing transactions, which can vary from token to token, so it's important to look into the prices that different tokens charge and choose one that fits your needs.

Metaverse Assets have higher transparency as compared to fiat money transactions

Transactions involving digital assets are recorded on public ledgers that provide an information flow of all transactions, making it reasonably straightforward to trace transactions and build audit trails. Furthermore, once a digital asset transaction is started, it cannot be changed or reversed. You retain ownership of your assets, and your transactions are secured by blockchain technology, which prohibits hackers from stealing or altering your cash.

Faster transactions benefit the business transactions

Digital asset transfers are often quicker, and you have more control over the process. Unlike payment systems like the SWIFT network, you may observe and approve transactions as well as determine when transfers begin, resulting in less uncertainty and possibly shorter wait times. Waiting times of many days and not knowing when your payments will arrive are less usual when utilizing digital assets as a result of this.

New business opportunities in the metaverse asset segment will drive the market growth

When you introduce digital assets to your firm, you make a place for new customers. By allowing individuals who utilize digital assets to engage with your company, you're not only increasing your chances of obtaining new customers, but you're also becoming more aware of consumer trends and maybe earning a competitive edge. Before you start employing digital assets in your organization, you should be aware that they are quite volatile. Because of the nature of digital assets, their value might fluctuate rapidly, it's crucial to keep this in mind when considering their usage for commercial reasons. Nonetheless, the advantages of employing digital assets for the company, such as those listed above, are enormous.

Market Restraints

Metaverse assets are highly volatile in price movements

While digital asset values may reach stratospheric heights, as the Ethereum price chart above plainly indicates, the trip can be rocky. For example, the price of ETH has declined more than 50% from its all-time high of $4,757 on May 12, 2021, to its current level of $2,156. This may be difficult for business owners, so proceed with prudence when allocating funds to digital assets.

Lack of security and privacy in asset exchanges

Security of assets is vital for company owners, and in the era of digital assets, this may be a problem. Hacks and other vulnerabilities can make digital assets vulnerable, leaving users with huge financial losses. Digital asset business accounts, on the other hand, typically incorporate many levels of protection, such as splitting assets between hot (online) and cold (offline) storage. There is also a budding Defi insurance industry growing for added security.

METAVERSE ASSETS MARKETPLACE MARKET REPORT COVERAGE:

This research report on the global metaverse asset marketplace market has been segmented and sub-segmented based on Asset type, Technology Geography & region.

Global Metaverse Asset Marketplace Market- By Asset type

• Non-Fungible Tokens
• CryptoCurrency
• Digital Land
• Other

According to blockchain data company Chainalysis, which revised previous research, the market for non-fungible tokens, which are digital works of art attached to blockchain technology, could reach $41 billion by the end of 2021. Total NFT sales would be considerably greater if digital collectibles generated on blockchains other than Ethereum were included, according to the Financial Times, which first reported the new figure. NFTs are edging closer to the traditional art market, where individuals purchase and sell tangible pieces, in terms of value. According to the most recent projection from a 2021 research, sales of traditional art and antiques would surpass $50 billion in 2020. Due in part to the COVID-19 epidemic and the Art Basel fair, that number was down from the previous year.

As the metaverse shows promise as a virtual reproduction of the actual world, the notion of metaverse real estate is gaining traction. Users in the metaverse can use virtual environments to monetize goods and services and earn the money they want. Because virtual land is available in the metaverse, purchasers and renters may develop monetized properties with distinct experiences. The plots of real estate in the metaverse, often known as virtual land parcels, are essentially blocks of 3D space. In virtual land parcels, developers may combine things, overlay experiences, design VR worlds, and build interactions for users. Decentralized governing organizations for decisions on the creation and allocation of additional parcels are common in metaverse systems. The governing bodies also make decisions.

Global Metaverse Asset Marketplace Market- By Technology

• Blockchain

The blockchain is the underpinning technology that enables people to exchange and possess digital assets. The capacity to store and distribute data and information is the primary reason for the blockchain's importance. Because the blockchain is a decentralized ledger, recorded transactions provide a level of transparency to a diverse set of users. This kind of transparency is critical for digital asset trading platforms because it may increase user confidence by allowing them to check transactions using blockchain records. In addition to openness, trading platforms benefit from blockchain's increased security, as transactions cannot be changed or erased. Finally, the blockchain can assist trading platforms by improving transaction efficiency and lowering transaction costs.

Global Metaverse Asset Marketplace Market- By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

During the projected period, APAC will have the greatest market growth of 43 percent. During the projection period, the non-fungible token (NFT) market in APAC will rise due to rising demand for digital assets in countries such as Singapore, China, South Korea, the Philippines, and Japan. The market in this region, however, will develop at a slower rate than the market in other regions. The non-fungible tokens (NFT) market in APAC is dominated by Singapore, China, and the Philippines. By offering art and fashion products, Korean retail outlets are expanding their foothold within the thriving NFT market.

NOTABLE HAPPENINGS IN THE GLOBAL METAVERSE ASSET MARKETPLACE MARKET IN THE RECENT PAST.

• Business Partnership: - In January 2022, CJ OliveNetworks Co. Ltd, a subsidiary of CJ Corp. in South Korea, announced a partnership with Galaxia Metaverse, a domestic blockchain business, to sell NFT artworks.
• Merger & Acquisition: - In December 2021, RTFKT, a startup that generates virtual shoes and other collectibles in the form of NFTs, has been acquired by Nike. In a partnership with digital artist Fewocious earlier this year, RTFKT sold 600 genuine shoes matched with virtual ones (issued as NFTs) in under seven minutes, netting USD3.1 million.