A recent survey conducted by PayPal sheds light on the increasing integration of cryptocurrency in the metaverse.
The study, commissioned in late 2022 and involving 10,000 active metaverse users, reveals fascinating insights into the role of digital currencies and the overall market outlook.
Crypto Adoption and User Preferences: According to the survey, a staggering 80% of metaverse users currently utilize cryptocurrency for various transactions.
Furthermore, an impressive 97% of metaverse users hold digital coins, with Bitcoin (BTC) emerging as the most popular choice, followed by Ether (ETH) and Robux (RBX). Surprisingly, despite the market downturn, 75% of users expressed a preference for being paid in crypto over fiat currency.
Challenges in the Metaverse: The survey highlights a few obstacles that the metaverse must overcome to ensure its continued growth.
Interoperability across platforms and environments, as well as the safety of funds, are among the key concerns. The financial infrastructure of the metaverse needs to address these issues by enabling interoperability between metaverse platforms, seamless integration with other online environments, and bridging the gap between the virtual and physical worlds.
Additionally, users expressed a desire for enhanced security measures and fraud protection for their digital assets.
Market Outlook and Spending Patterns: PayPal anticipates substantial spending in the metaverse, projecting it to reach billions of dollars. Currently, the majority of metaverse users are engaged with video games within the virtual realm.
The survey reveals that people are already spending $28 billion annually in the metaverse, with nearly 38 million active users.
By considering the current and projected future user base, estimated spending in the metaverse is expected to reach $72.6 billion in the next year and an average of $92.7 billion per year over the next five years.
Evolving Metaverse Landscape: The metaverse has experienced both scrutiny and evolution over the past year. Meta, previously known as Facebook, faced challenges as its metaverse plans did not unfold as expected, leading to stock price declines and significant job cuts.
However, other notable companies such as Fidelity and Gucci have embraced the metaverse. Fidelity has launched metaverse experiences on platforms like Roblox and Decentraland, while Gucci has collaborated with the Bored Ape Yacht Club to explore fashion in the virtual world. Even traditional finance giants like HSBC and JPMorgan have made their foray into the metaverse, underscoring its growing significance.
