Dispatch #161: Tik-Tok’s Owner Dominating a $4 Trillion Metaverse?

Oct 14, 2023 3 min read

Dispatch

In this patch of your weekly Dispatch:

Full-moon ETH forecast 🌚
Banks settle on-chain ⛓️
Amazon backs gamers 🎮

The Big Idea

A $4 Trillion Ecosystem not-far-off from Reality?

The Metaverse has somewhat backed out of the main stage in the tech world, partly due to the crypto winter of 2022 and the recent AI buzz. But it may all be about to erupt again and to the tune of a $4T industry in the next 10 years.

This is the comeback predicted by Acumen – a research and consultancy firm which sees online gaming, the convergence of physical and digital worlds, NFT popularity, and the ascent of mixed reality as the main drivers behind the potential Metaverse resurgence.

The main challenges to reach the grand projections by 2032 lay in unifying platforms and systems, addressing privacy concerns, and optimizing costs. The report also points to the opportunities that arise for the Metaverse – utilizing advanced software, the adoption of VR devices, and the fusion of e-commerce and retail.

In 2022, the global metaverse market reached an impressive $88B, with North America leading the charge with its USD 42.3B share. This time it’s the tech-savvy Asia-Pacific region – led by companies such as TikTok’s parent ByteDance – that is on the cusp of a remarkable surge, according to the survey: a compound annual growth rate (CAGR) of over 47% from 2023 to 2032.

Naturally, it will be the biggest software companies that dominate the race: ByteDance, Meta Platforms, and Microsoft are all prominently named in the report. And while some may say “We’re back to square one then,” at Dispatch we’ve always seen this as an ever-evolving technological race – it’s inspiring to look ahead and dream what’s possible.

The Latest In…

What’s New Under the TradFi Sun

Banking corporation Standard Chartered chimed in with a prediction of theirs. Ether, the second-largest cryptocurrency, could surge over fivefold and reach $8,000 by the end of 2026, says the giant’s Head of FX Research, Geoff Kendrick. “We see the $8,000 level as a stepping stone to our long-term 'structural' valuation estimate of $26,000-$35,000”, wrote Kendrick as reported by Reuters. The driver behind the predicted rise? Ether's increasing utility in smart contracts, gaming, and the tokenization of traditional assets. Now where did we see this before?

The Latest In…

What’s New Under the TradFi Sun

JPMorgan, the largest US bank, conducted its first collateral settlement using blockchain technology this week. They did so following the principle that’s allowed Nexo’s signature credit lines to function flawlessly since 2018, which goes to show just how permeating blockchain technology is. But let’s dissect what JPMorgan did in this significant milestone for TradFi: Completed their first collateral settlement using blockchain via the Tokenized Collateral Network (TCN) → BlackRock's shares were transformed into digital tokens for a derivatives trade with Barclays → collateral moved almost instantaneously on the blockchain.

The achievement highlights the efficiency gains blockchain can offer in finance by streamlining financial transactions, enhancing speed, and reducing risks during market stress. Slowly, then all at once. 💬

The Latest In…

Amazon’s Helping Hand

Leading blockchain gaming company Immutable is teaming up with AWS to fast-track the crypto gaming industry. Immutable now offers game developers on its Ethereum-compatible blockchain access to AWS Activate, which provides essential support and up to $100,000 in AWS credits. This collaboration is said to seek to simplify the creation and expansion of Web3 games, which are increasingly in demand. AWS is also involved with the Blockchain Game Alliance and other crypto firms, further fueling the growth of crypto-powered games.

Explore Web3 gaming as a topic in this Social Block podcast episode.

The Week’s Most Interesting Data Story

HODL It Steady!

Say what you will about long-term Bitcoin investors, but they cannot be blamed for not staying true to their nickname. HODLers have been accumulating around 50,000 BTC (worth $1.35B) per month and now actually hold 76% of the BTC supply.