On Thursday, Citi analysts projected the Web3 economy to reach $13 trillion by 2030.
Greater access to host use cases, including commerce, art, media, advertising, healthcare, and social collaboration, support the bullish outlook.
Significant infrastructure investment is needed to reach around five billion Metaverse users.
Market sentiment towards the Metaverse has turned yet more bullish. More mainstream players are entering the Metaverse. Trademark application filings suggest a marked increase in virtual engagement.
Across the broader crypto market, Metaverse-related news has been a key to price action. This week, Zilliqa (ZIL) has surged by more than 100% in response to Metaverse-related news updates on Metapolis. Metapolis is powered by Zilliqa.
With the increased activity and endless possibilities, banks have become particularly bullish with their Metaverse projections.
Citi Projects a $13 Trillion Metaverse and Five Billion Users
An analyst report talked of the Metaverse becoming the next generation of the internet, bridging the digital and physical worlds in an immersive manner.
The report delivered two projections:
A narrow definition with Metaverse usage limited to VR/AR headset users. Analysts project 900m to 1bn users by 2030 and a total addressable market estimate of between $1tn and $2tn.
A broad definition, with the Metaverse having unique internet users. Analysts project 5bn users by 2030 and a total addressable market estimate of between $8tn and $13tn.
Citi views gaming as the primary Metaverse use case. Analysts expect the Metaverse to expand and allow people to find new ways to carry out everyday activities.
‘Enterprise use cases of the Metaverse in the coming years will likely include internal collaboration, client contact, sales and marketing, advertising, events and conferences, engineering and design, and workforce training.’
The report does highlight that in its current form, the internet infrastructure is inadequate for ‘building a fully-immersive content streaming Metaverse environment.’
Significant investment is needed to integrate the Metaverse with the real world. Low latency is considered a critical factor in delivering an appropriate user experience.
For a truly immersive Metaverse experience, the report highlights the need for sub-12ms latency and faster connectivity speeds.
In the Metaverse, NFTs will also be a key component. Users can store NFTs in digital wallets and take them everywhere within the Metaverse.
Big Names Take to the Metaverse Supporting Citi’s Outlook
Mainstream interest in Web3 has surged since the beginning of the year. Corporations across industries have entered the Metaverse or have filed Metaverse-related trademark applications.
In February, McDonald’s entered the Metaverse, giving fans a virtual experience to celebrate the Lunar New Year.
Sport has also embraced Web3. In January, Tennis Australia went virtual for the Australian Open. The Metaverse gave fans virtual access to Melbourne Park.
The increased activity had caught the eye of JPMorgan earlier this year.
JPMorgan Buys Land and Projects a $1tn Metaverse
JPMorgan talked of the limitless opportunities that the Metaverse presents, ranging from virtual workspaces to music artists holding concerts. As a result of these opportunities, the bank sees all types and sizes of companies entering the Metaverse.
JP Morgan highlighted many issues that need addressing. These range from taxation to policing activity.
As more industries enter the Metaverse, the more bullish projections will likely have a cascade effect, accelerating the pace of infrastructure investment and mainstream adoption.
This article was originally posted on FX Empire