FameEX Hot Topics | Metaverse Projects Dominate 43.68% of Web3 Investments in 2023, According to DappRadar
According to a recent report by DappRadar, venture capital firms have invested a substantial $707 million in metaverse projects since the beginning of 2023. This indicates that, despite the decline in interest and popularity of virtual worlds, metaverse-linked initiatives received 43.68% of all investments in the Web3 sector.
The report highlights a significant drop in interest in virtual worlds, with trading volume plummeting by over 80% in Q2 compared to Q1, totaling $56 million. The decline is attributed to the public's waning fascination with the metaverse and virtual worlds, as meme coins and artificial intelligence (AI) gain prominence in the mainstream.
Although the total funding for metaverse projects in 2023 stands at $707 million, representing less than 10% of the amount raised in 2022 ($7.6 billion), the metaverse remains a dominant force in the Web3 landscape, commanding a substantial portion of investments.
Asia, particularly regions like Hong Kong, mainland China, and Japan, is identified as a promising continent for metaverse growth. Governments and companies in these areas are heavily investing in the development of the metaverse. Hong Kong, in particular, is positioned as an international metaverse hub, fostering an innovation-friendly environment and integrating the real estate and luxury goods sectors into the emerging metaverse industry.
Mainland China stands out as one of the few countries with a comprehensive metaverse plan, including initiatives in education and tourism. Notable Chinese companies such as Bytedance, Alibaba, Baidu, and Tencent have made significant investments in metaverse hardware and software development.
Japan, known for its leadership in the entertainment and gaming sectors, is also poised to capitalize on the metaverse trend. The country is incorporating national intellectual properties (IPs) into virtual and augmented reality applications, leveraging its strengths to enhance experiences in the metaverse, including popular franchises like Pokémon Go.
In conclusion, despite a decline in overall interest in virtual worlds, the metaverse continues to attract substantial investments. The DappRadar report emphasizes the metaverse's resilience in the Web3 ecosystem and highlights the potential for growth in regions like Asia, particularly Hong Kong, mainland China, and Japan, where significant investments and government support are driving the development of the metaverse.
Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.