The concept of the metaverse has been around for a while, but it recently blew up thanks to heavy promotion from tech companies like Meta, who have framed it as the next evolution.
It is a concept that describes a virtual reality where people can interact with each other and with digital content across different platforms and devices.
The idea is that people will be able to live and work in online worlds that are persistent and interconnected.
However, despite this hype and investment from different major tech companies, the metaverse has also faced many challenges and difficulties, as many of the projects and initiatives that have tried to create and explore it have failed to deliver or meet expectations.
This has raised the question: Is the metaverse dead, or will it rise again?
Let us dive into this article and uncover the misery behind the rise and fall of Metaverse.
Metaverse Chronicles: Ascent & Eclipse
The term “metaverse” first appeared in the 1992 novel Snow Crash by Neal Stephenson. In the novel, it was referred to as a massive online simulation that was accessed by millions of users through virtual reality headsets.
This novel inspired many visionaries and developers to imagine and create their version of the metaverse. Some of these include Second Life, World of Warcraft, Minecraft, and Fortnite.
On these platforms, users can create custom avatars, build virtual places, socialize with others, and even take part in a variety of activities and events.
The metaverse became very popular in the mid-2020s for several reasons that will be discussed.
- The COVID-19 pandemic era resulted in major lockdowns and high demand for online and virtual platforms as people sought new ways to connect, entertain, and work from home.
- The advancement and accessibility of virtual reality and augmented reality devices, such as Oculus Quest, Microsoft HoloLens, and Apple Glass, enhanced the quality of the metaverse experience, making it more realistic and immersive.
- The emergence of blockchain and cryptocurrency integrations, such as Ethereum, NFTs, and DAOs, enabled people to own digital assets and make real money in the virtual world.
- The endorsements of major companies and celebrities, such as Facebook, Google, Nike, Adidas, Lady Gaga, Travis Scott, and others, have increased awareness as they have also launched and promoted their virtual content.
But even with all this hype, the metaverse concept did not emerge as much as expected due to its failure to face several challenges and limitations that hindered its adoption and development.
What Happened To Big Metaverse Projects?
Some of the most prominent metaverse projects that have emerged in recent years are Decentraland, Sandbox, and Axie Infinity.
Within just a short period, the projects attracted millions of users and investors who were excited about the idea as an opportunity to participate in a new and innovative form of entertainment and build an economy.
However, these projects also encountered many problems and difficulties that eventually led to their decline and demise.
Decentraland
Decentraland, launched in 2017 and designed to allow users to build their digital world, raised over $20 million in its initial coin offering (ICO).
The project faced several technical and operational difficulties, such as slow development, high fees, low user engagement, and limited functionality and content.
Additionally, the company was criticized for its impact on the environment, as blockchain technology was claimed to consume a lot of energy and resources.
The Sandbox
The Sandbox started declining after experiencing challenges similar to those of Decentraland. The project is said to have a very high cost and low adoption. Its token (SAND) has lost 6.7% in the last 24 hours, according to Coingecko.
Additionally, it uses voxel graphics, which does not provide the most realistic experience that people expect. People still wonder how this project can lose its legacy even after the heavy involvement of celebrities like Snoop Dogg, aka Cozomo de’ Medici.
Axie Infinity
Launched in 2028, Axie Infinity became one of the most successful and popular metaverse projects ever created, with over 2 million daily active users and over $2 billion in revenue as of October 2021.
However, it soon faced several issues and risks as it suffered from regulatory issues and security breaches.
To top that, the company was criticized for its addictive nature because users tend to spend an excessive amount of time and money on the game.
Possible Reasons That Sparked The Downfall In The Metaverse
A major issue with current metaverse experiences is that the technology remains limited.
Besides individual project struggles, users have pointed to larger issues that have inhibited mainstream metaverse adoption so far. Some of these include remaining technical constraints around virtual reality headsets and blockchain scalability.
Additionally, cultural and educational barriers, meaning much of the wider public still needs to understand and see value in virtual worlds. The high investment costs for companies combined with unproven business models also present a challenge.
Most metaverse platforms have struggled to support sustainable economic growth for developers and users over the long term.
Furthermore, it’s reported that VR headsets are often bulky, heat up with prolonged use, and cannot perfectly replicate reality.
While virtual worlds hold entertainment potential as an extension of gaming and social networks, the original sweeping vision of the metaverse as a replacement for real life remains far-fetched.
Will The Metaverse Concept Rise Again?
Despite recent setbacks, investments by major companies suggest the metaverse concept could still gain traction. For instance, social media giant Meta (formerly Facebook) has rebranded their entire company to signal their commitment to leading metaverse development. Microsoft has also revealed ambitious plans for collaborative mixed-reality experiences via its “Mesh” platform.
Both companies are funding research around overcoming key technical constraints in areas like VR/AR hardware, cloud infrastructure, and computing, to reach a tipping point where high-quality experiences attract consumers, which in turn draws more developers, fueling further growth.
Additionally, Apple also announced its first headset this year for its metaverse, called the “Reality One” or “Reality Pro”. The headset is expected to be a high-end mixed-reality device that will offer both VR and AR functionalities.
Rather than just one cohesive metaverse, these current trends point to a collection of interconnected virtual worlds created by different platforms.
While increased investment now focuses more on enterprise use cases, niche gaming communities on platforms like Fortnite and Roblox show that deeply engaged user bases are possible when metaverse experiences resonate.
Conclusion
The metaverse remains a more theoretical concept than a practical reality. However, decades of experimentation and failure are typical of new technological paradigms before reaching maturity.
Despite lingering challenges, heavy investment from major tech giants suggests industry leaders believe usable metaverse experiences can still become a ubiquitous part of how people interact online.
The question remains open as to whether enough key innovations across areas like hardware, AI, blockchain, and business models will emerge to make this a reality.
