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The metaverse is one of the most talked about trends of 2022, but do many traders actually understand the concept before buying into related stocks, ETFs and NFTs? Come and explore the virtual world with us.
In simple terms, the metaverse is the idea of a digitally simulated environment that reflects the physical world. Its purpose is to create interactive and immersive experiences between users around the world through multiple avenues such as gaming, social media, art and finance.
Augmented Reality (AR)
Augmented reality relates to sounds, visuals and other sensory elements that create a real-world environment.
Virtual Reality (VR)
Virtual reality requires special headgear to create three-dimensional images or environments that users can interact with.
Although it has been reported that only 1 in 3 US adults are familiar with the concept of the metaverse, it seems like it has exploded in the past couple of years, generating an influx
of money from tech giants, investors and hedge funds alike.
Here are some statistics to show you just how big its potential is:
Market Size
The metaverse is expected to be worth more than $800bn by 2028, with some outlets like JP Morgan and Goldman Sachs predicting its market size to be over $1tn.
Covid-19
The Covid-19 pandemic helped to grow consumer and business interest in the metaverse, where non-fungible tokens (NFTs) saw an increase of $2.5bn, according to EarthWeb.
Augmented Reality
AR is expected to overtake VR in the long run, with a combined CAGR growth of 63.3% by 2025, based on a report by Valuates.
Web 3.0
According to Statista, there are around 50,000 users currently for Web 3.0 virtual worlds, which is a new iteration of the worldwide web based on blockchain technology.
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Virtual Reality
Access a VR headset to get involved with multi-player games
2
Avatars
Create your own Avatar as a digital twin
3
Real Estate
Invest in land by buying a virtual plot or estate around the world
4
Crypto
Purchase and spend crypto coins, including some of the most popular like MANA (Decentraland) and APE (ApeCoin)
Many traders now see the metaverse as an effective way to profit from the rise of artificial intelligence and the future of the internet. In particular, traders can open short long or short positions based on whether they think that the price of related instruments will rise or fall, through methods such as spread betting or CFD trading. So what are some metaverse stocks at the forefront of metaverse technology right now?
Interested to know more?
Read our Opto eBook: a list of the top 10 metaverse stocks to watch
Decentraland
One of the first platforms to tackle the concept of the metaverse was Decentraland, which was launched in 2020. It has over 300,000 monthly active users and 18,000 daily users, according to Yahoo Finance. The platform is a VR space based on blockchain that allows users to interact with one another, play games, attend events and trade investments and other digital assets, such as land, for money.
Sandbox
Sandbox is another blockchain-based platform that was originally released in 2012, although the official metaverse version of the game, Sandbox Alpha, launched at the end of 2021. The main focus of the game is to buy, sell and trade virtual plots of land, and it has also created its own digital currency, an Ethereum-based token called SAND, which can be used within the platform.
Roblox
Since the company launched in 2004, Roblox has published over 20 million games. The purpose of the platform is for users to create and develop their own games, which other users can then join. Roblox has also partnered with brands like Vans and Burberry so that users can dress up their Avatars in designer wear.
Hyperverse
HyperVerse consists of millions of worlds, planets and cosmos which make up the universe, and each person who lives there is referred to as a ‘Voyager’. Together, users can explore the universe, connect with friends, create tokenized items, watch streaming concerts, sell NFTs to other users and start businesses. The company was founded in 2016.
NAKAverse
The NAKAverse is a universe that will be introducing an in-game economy using the original NAKA tokens, a form of digital currency, which will be used to acquire virtual land and construct buildings. The platform is built and owned by Nakamoto Games, whose main focus is to net monetary rewards for both investors and players.
Stageverse
Exactly as you’d expect from the name, Stageverse is a VR platform hosting interactive experiences and events, such as concerts. Users can dress their Avatars, connect with fans around the world and explore the shows from 360-degree angles and 3D footage. As well as through a virtual reality headset, users can also watch the shows on mobile devices.
A collection of stocks in simple terms, exchange-traded funds (ETFs) give traders access to multiple companies using a single position and are often themed to a specific trend or industry. Examples can include ESG, cannabis, SaaS and more, but is it time for them to move over for metaverse ETFs?
This was the first global index designed to track the performance of the metaverse through companies involved in payments, hardware, computing, networking and virtual platforms.
Top holdings:
• Meta Platforms
• Autodesk
• Sea
• Taiwan Semiconductor Manufacturing Company (TSMC)
• Qualcomm
The fund provides access to the metaverse ecosystem to capture opportunity as it evolves, tracking companies that have potential to revolutionise the digital world.
Top holdings:
• PTC
• Microsoft
• CEVA
• Activision Blizzard
• Snap
The fund aims to provide long-term capital appreciation through investing in North American securities, as well as other developed markets around the world, such as China and Japan.
Top holdings:
• Electronic Arts (EA)
• Tencent
• Advanced Micro Devices (AMD)
• Alibaba
• Coinbase
Are you thinking about getting involved with the metaverse but not sure which is the easiest way? Rather than purchasing a VR headset and actually entering the virtual universe, why not trade on related stocks, ETFs and more through an online broker?
1
GET STARTED WITH A DEMO ACCOUNT
Practise trading in a risk-free environment with £10,000 worth of virtual funds before transferring to a live account.
2
LEARN THE BASICS OF TRADING
Our most popular product is spread betting, which is tax-free in the UK*, so consult our guide on spread betting explained before jumping in.
3
KEEP UP WITH METAVERSE
Stock prices can fluctuate depending on new technology developments, conferences and events, so it’s good to stay up to date.
