Will the metaverse dream survive the downturn? Forecast for 2023

After the hype of 2021 around the topic of the metaverses, in 2022 interest in them began to decline in the context of a bearish crypto market. What can we expect in 2023?

In 2021, one of the main and hot topics has become the industry of metaverses and virtual worlds. It was also one of the leading drivers of the bull market.. As a result, the rates of such tokens as Decentraland (MANA) and Sandbox (SAND) showed a dizzying pump. Many mainstream companies have expressed interest in expanding into virtual worlds.

However, 2022 was not an easy year for the crypto community.. The crypto winter and the resonant collapses of several large crypto companies have noticeably cooled the enthusiasm of many observers and market participants.. According to a report by The Block Research, in 2022, monthly trading volumes in the metaverse market have fallen by 96%.

How will events in this industry develop in 2023?

Coexistence of multiple metaverses

The foundation and fundamental idea of the Web3 ecosystem is decentralization. Therefore, it would be strange to expect that only one metaverse monopoly will establish itself in this industry.

This can be compared to many social platforms such as Instagram, YouTube or TikTok. All of them differ from each other and offer users some unique options and use cases.. In the same way, in the virtual world, the coexistence of various metaverses is possible, offering certain services and opportunities.. For example, immersive shopping experience or exclusive game types for gamers. Other platforms may provide specific conditions for corporate or educational activities. Such potential is inexhaustible.

These platforms can be compatible and interact with each other. Users will be able to move their assets from one site to another through special bridges. You can buy clothes on one platform and then wear them on another (for example, to a lecture at an online university).

Business in the Metaverse

Despite the crypto bear market, well-known mainstream brands continued to show high interest in the development of the metaverse in 2022. So, by November, 5364 applications for registration of trademarks in the metaverse and the field of virtual goods/services were filed in the United States.

Source: Twitter

In November alone, several new big names in the industry became known. First, sports giant Reebok joined Nike and Adidas, who had already begun to master the metaverses.. Once trademark applications are approved, the company will be able to launch virtual goods such as shoes, hats, sports equipment, and NFTs.

More recently, BMW, the world's leading manufacturer of automobiles and motorcycles, applied for trademark registration in segments such as NFTs, virtual vehicles, clothing and footwear, as well as retail outlets for their sale and virtual environments where they can be used. .

December brought new news. The German automotive corporation Mercedes-Benz Group AG has also filed five trademark applications in the NFT and Metaverse areas.. Trademark applications for “Mercedes Benz, Mercedes, S-Class, G-Class and Maybach” will include NFT licenses, virtual clothing and merchandise, licensed trademark attorney Mike Kondoudis tweeted. , retail stores for virtual car parts and more.

Source: Twitter

Jason Warnke, Head of Digital at Accenture, believes the Metaverse will change every aspect of business, including product offerings, distribution, and business models.

In November, it became known that the developer of blockchain games Animoca Brands will create a fund with a capital of $2 billion.. The money will go to support and development of the metaverses.

Virtual worlds and AI

2022 was a breakthrough in the development of technologies in the field of artificial intelligence (AI). In particular, the DALL-E and ChatGPT platforms were actively involved in this area.

A number of metaverse projects began to focus on user-generated content (UGC) created by the community members themselves.. AI technologies help them with this.. According to PwC experts, AI makes it possible even for those who do not have any special technical knowledge to effectively create and experience the experience of complete immersion in the metaverse.

“AI-generated images can create a more realistic and immersive virtual environment,” said Sam Hamilton, creative director of the Decentraland Foundation..

Many members of the community agree with him.. They believe that one of the key topics in the metaverse segment in 2023 will be the use of artificial intelligence.

However, skeptics warn that advanced technologies may also lead to the emergence of new crimes.. For example, with the help of AI, cyber fraudsters can steal the personal data of users in virtual worlds and generate their avatars in order to then use them to commit any crimes in the metaverses, thereby substituting the innocent.

In this regard, the Chinese authorities have already taken care of this issue.. They issued a decree prohibiting the generation of images by neural networks without watermarks or other marks.

Previously, we compiled the top 9 stocks for investing in AI, providing an opportunity to earn on artificial intelligence.

Police in virtual worlds

The more acceptance of the metaverses spreads and the more people they attract, the more visitors with bad intentions turn out to be in them.. Until recently, it was difficult to imagine what passions can be played out in virtual worlds.. However, now even state law enforcement agencies are forced to take up the case.

So, in September it became known about a 30-year-old Korean who received 4 years in prison for sexual harassment in the popular virtual world.. To ingratiate himself with minors, he used children's avatars, played with them, gave them gifts, and then persuaded them to be photographed without clothes.

Earlier in late December 2021, a resident of Britain said that in the metaverse she was attacked by several male avatars and subjected to virtual gang violence, while making offensive comments and taking photos.

In addition, as noted above, the use of AI technologies also opens up new opportunities for cybercriminals.. Reports of bullying, racism, and other forms of virtual hate in the metaverse are also on the rise.

Accordingly, there is a need for the emergence of special police forces in the metaverses that can protect ordinary users and their rights from intruders.

Jamilia Grier, founder and CEO of consulting firm ByteBao, says:

“It's an inevitable process. Some users will start using others, crimes will be committed, and, unfortunately, we are already seeing this. In the physical world we have laws to fight crime. It is equally important that the metaverses also have laws to deal with the crimes committed there.”

In October, the police of the city of Ajman (United Arab Emirates) announced that now law enforcement officers will provide services to citizens through metaverse technologies. This was one of the first steps in the right direction.

Change is inevitable

After the hype of 2021, the metaverse hype wanes in 2022. Google Trends data shows a gradual decline in interest in this topic. The number of search queries for the word “metaverse” gradually decreased:

Source: Google Trends

However, Niels Peel, founder and CEO of Auki Labs, believes that such a dampening of the hype was inevitable:

“This hype was entirely provoked by those who hoped to make money on the metaverses, and not populate and inhabit these virtual worlds. Everyone was betting that this topic would be of interest to someone else.. Meanwhile, he emphasizes, it is necessary to create what people want to use, not what they hope to sell.

Previously, the editors of BeInCrypto compiled a list of the top 10 metaverses to watch in 2023.


All information contained on our website is published on the principles of good faith and objectivity, as well as for informational purposes only.. The reader is solely responsible for any actions taken by him on the basis of information received on our website.