the values ​​at stake the profitability of the metaverse

The idea of ​​a metaverse is not new. The new is the point at which the lines between the physical and virtual worlds have blurred. This change in the way people live their lives offers immense opportunities. Digital assets are a big part of these opportunities. And every time there are investment banks that decide to jump on the bandwagon because of the potential for the future. Citi is the latest Wall Street player to issue a bullish forecast for web3 and the metaverse, which outline a future vision of the internet built around decentralized technologies and virtual worlds.

The economy of the metaverse could be a market whose capitalization from 8 trillion to 13 trillion dollars by 2030as analyzed by the North American entity in an analysis report that it has recently published.

The definition of the bank’s metaverse goes beyond sticking to virtual worlds, such as video games and virtual reality applications. Citi’s broad vision of the metaverse includes smart manufacturing technology, virtual advertising, online events like concerts, as well as the acceptance of digital money: cryptocurrencies like bitcoin and other tokens. “Under this umbrella, the metaverse could accumulate 5 billion unique internet visitors by the end of the decadegenerating trillions of dollars in revenue in the next web3,” says the bank.

In fact, Citi is just the latest banking giant to call the metaverse and web3 a sector where there may be millionaire revenues. In an analysis published in December by Goldman Sachs, the forecasts went in the same direction. The investment bank put a figure of 12.5 billion dollars as the valuation of this sectorin a bullish perspective that assumed that a third of the digital economy would move to virtual worlds to expand by 25%.

Microsoft will be the third largest video game company after Sony and Tencent.

The bullish forecasts by Citi and others come even as metaverse-linked investments have shown lower returns than the market average of late. “A lot of money has already been invested in companies tackling the space, which means that some of the growth has already been reflected in share prices”, they clarify from the financial institution. However, in the report they state that there are some names to keep on the radar with the predicted exponential growth of the metaverse.

The most prominent names

Which are? In the opinion of these experts, Nvidia could be one of those companies to watch with great attention. The chipmaker’s plans to develop the “omniverse” may be its main catalyst in this area. “This strategy involves developing industrial applications and innovations in artificial intelligencewhich is a key part of the optimistic outlook,” they say.

Nvidia, which has a market capitalization of more than $700 billion, has seen its share price rise 110% in the last year. A rally that many say may have discounted some of the company’s long-term success on the stock market. However, many see Nvidia as an attractive investment for other reasons. Analysts continue to highlight the strength of your core businesswhich is the marketing of high-power semiconductors and data centers.

Although it is not the only one that these analysts also put on the radar. Roblox, a video game company in which users become developers to build virtual worlds, is another possibility. “It is a platform that still has room for growth,” they specify from Citi. Notably, the company’s shares are down 27% over the past year. Hence, some experts consider that now it can have a greater potential in the long term with this expansion that can be produced from the metaverse.

This situation is very similar in the exchange traded funds that track the space. The Defiance Digital Revolution ETF is down 29% since its launch less than four months ago, while the Roundhill Ball Metaverse ETF (METV) it has lost 19% since its launch last July. They are products to follow closely, according to the entity. “Despite increased investor interest, the average performance of metaverse ETFs has been poor to date, reflecting a concept that is fast approaching the peak of inflated expectations in the short term”, wrote JPMorgan in a recent report. At the moment, it seems that the path is already beginning to be traced on the long-term possibilities.

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