Deepseek sees Metaverse Market Down To $10bn But Outlook Remains Strong
By Vishakha Thakur
The otherwise upwardly trending Bitcoin’s recent downturn triggered a broader crypto market decline, with metaverse tokens mirroring the drop as well. The slump coincided with the rapid rise of China’s AI startup DeepSeek, whose open-source model dramatically outpaced ChatGPT, becoming the top-rated app in the US and China. Traditional markets also felt the heat, with NASDAQ, led by Nvidia, facing a hugely significant downturn.
Well, although the metaverse market, too, is feeling the heat, the long game tells a different story. Let’s try to break it down.
The metaverse market cap has plunged to $10 bn, down by up to 4% in the past 24 hours. The slide continues over the past week, with key players taking big hits.
Over the past one week, major tokens have recorded steep losses, with Sandbox’s SAND falling 3.4%, Floki Inu dropping 3.3%, Axie Infinity’s AXS down 4.3%, Decentraland’s MANA sliding 3.1%, and Illuvium’s ILV losing 6.4%. This downward trend reflects cautious investor sentiment amidst a challenging macro environment.
Looking ahead, a report by Allied Market Research projects the metaverse industry to grow to $1.2 tn by 2030, representing a CAGR of 40.4%. While gaming currently accounts for 20% of the market, this share is expected to shrink to 15% as enterprise applications, content creation, and social media take centrestage. The service segment is anticipated to grow the fastest, with a 42.7% CAGR, while hardware remains the dominant segment. However, hurdles such as interoperability challenges, high costs, and privacy concerns remain barriers to mass adoption.
In other developments, the industrial metaverse is gaining momentum as enterprises adopt emerging technologies for enhanced productivity. Valued at $20 bn today, the industrial metaverse market is expected to hit $500 bn by 2035, with applications like digital twins, VR-based training, and predictive maintenance leading the charge. Governments are also exploring its potential for smart city development and disaster preparedness.
On the token front, KuCoin has listed Metaverse HQ (HQ), with trading for the HQ/USDT pair. Well, HQ leverages AI to reward users across gaming, NFTs, and DeFi ecosystems. KuCoin has also launched a staking campaign offering 4 mn HQ tokens in rewards, providing lucrative opportunities for early adopters.
Well, metaverse may be facing short-term turbulence, but its long-term prospects remain strong.
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