Is there any relationship between Metaverse and Cryptos? Well, that’s a tricky question to answer. However, if you are saying a yes, then will the future of Cryptos be affected by the tremendous increase in Metaverse users? We know the questions are quite difficult to answer. So, here we are with the post on “How Metaverse Will Affect Crypto”, to help you out.
The cryptocurrency was launched in 2009, with Bitcoin, the first decentralized cryptocurrency. Today, there are more than 10,000 cryptos in the world. On the other hand, Metaverse was launched in 2003. Initially, there was no connection between the two. However, with the launch of Decentraland and Sandbox, a connection was developed between the two worlds. They started using cryptos as in-game currency. This led to an increase in the number of new cryptos in the market.
There must be several questions running inside your head now. Well, my friend frets not because here is a detailed explanation about everything related to the topic. So, fasten your seat belts as we take you to the Cryptos and the Metaverse relationship drive.
What Are Cryptos?
Cryptocurrency is a digital currency that is stored in digital wallets. It is a peer-to-peer system that allows users to send or receive money digitally. The record of the transactions is stored in a public ledger (Blockchain). It was named cryptocurrency because of the encryption used to verify transactions. It uses advanced coding for storing and transmitting data between wallets and ledgers.
Blockchain is a distributed ledger on which cryptocurrency runs. Units of cryptos are created through the process of mining. This process involves using computer power to solve complicated mathematical problems that generate coins.
Well, it is also a matter of fact. If you own a cryptocurrency, you don’t own anything physical.
Also Read, NFTs Vs Tokens | How Are They Different?
Top Ten Cryptocurrencies
|S. No.||Crypto||Market cap|
|4.||Binance Coin||$63 billion|
|5.||U.S Dollar Coin||$50 billion|
What Is Metaverse?
Metaverse is a 3D virtual world where you can play games, explore and socialize with other people. Many companies are contributing towards Metaverse. The Metaverse Platform allows users to learn, play, develop and collaborate with other players. Different companies have their own Metaverse based on their interpretation of the technology and user demand. They have their own currency, own rules, different features, and much more.
Top Ten Metaverses
|1||The Sandbox||3.5 ETH|
|2||NFT Worlds||9.5 ETH|
|4||Town Star||0.01 ETH|
|5||Worldwide Webb Land||1.38 ETH|
|7||Somnium Space VR||0.88 ETH|
|8||Treeverse Plots||1.39 ETH|
|9||The Sandbox Assets||0.01 ETH|
|10||Ember Sword Land||0.2 ETH|
Also Read, Metaverse Vs Omniverse | Are Both The Same Or Different?
Now as we are familiar with what cryptos and metaverse are, it’s time to see how Metaverse will affect Cryptos.
How Metaverse Will Affect Cryptos?
At this point, it will be clear to you what is Crypto and what is Metaverse. Now, we will look deeper into the relationship between the two. The Metaverse started to trend in 2020 and the Facebook name change gave it a boost.
Let us take up the example of Decentraland, which is among the top-ranking Metaverse. With the play-to-earn games in Decentraland, people started earning in the Decentraland Metaverse. The overall impact of the boom of Metaverse was directly Cryptocurrency. As Metaverse uses Cryptocurrency as their in-game currency, people started using cryptos willingly or unwillingly. This made the crypto market more stable.
The query of how Metaverse will affect Cryptos can be summed up in the following points:
1. Increase In Users
With the launch of Metaverse and its famous platforms like Decentraland and Sandbox, the number of users also increased. This not only increased the users of Metaverse but also of the cryptos. These players are earning in Cryptos, so they are trading cryptos affects the cryptos world as well.
2. Market Stability
As the number of users increased which increased the trade of cryptos, this led to market stability. Now cryptos like Ethereum are ranking top in the crypto world. This increased the overall profit of users and the risk factors were reduced.
Also Read, Metaverse Vs Web 3.0 | What Is The basic difference Between The Two?
3. Increase In Cryptos
After the huge success of Metaverse, new companies launched their own Metaverse. They also launched their own cryptos for in-game purchases. Like MANA in Decentraland, Sand in SandBox. These tokens are all exchanged with cryptos like Ethereum which will definitely affect their market value.
4. NFT Trade
Not just the in-game purchases, Metaverse introduced new marketplaces where artists can sell their artworks as NFTs. These NFTs changed the life of many artists. NFTs are purchased or sold in cryptos. So, now artists are also dealing in cryptos because of the advantages offered by NFTs. They get loyalty to their artworks even after selling their artwork.
Also Read, Best Metaverse ETFs | Where You Should Invest?
We have discussed in detail cryptocurrency, metaverse, and how metaverse will affect cryptos. We have also listed the top 10 cryptos and the top 10 metaverses currently ranking. From the investment point of view, the volatility of Cryptos has now reduced. No doubt there are continuous ups and downs, still, they are a stable place to invest in.
Keep sharing this post on how metaverse will affect cryptos and keep reading our posts.
Frequently Asked Questions
Q1. What Does Crypto Have To Do With Metaverse?
A Crypto wallet is the place where you can store your NFTs. Cryptocurrency is the only currency through which you can purchase or sell NFTs.
Q2. Is Metaverse Crypto Worth Investing?
Investing in metaverse and Cryptos can pose a lot of risk to users. If you are planning to invest for the long term, then you can take the risk. However, it is always better to understand what you are investing in.
Q3. Is Volatility Good For Cryptos?
No, not at all. This makes the Crypto market very uncertain.