METAVERSE and online virtual reality games were created to disrupt the traditional gaming market where the platforms own and control user-generated content meaning the rights of gamers are limited.
In the metaverse, users have complete ownership over their creations.
What is the crypto metaverse?
A metaverse is a shared, virtual world where players, which are usually represented by avatars, can interact with each other, and create objects and landscapes.
A crypto metaverse is a metaverse which incorporates blockchain into its underlying technology and crypto assets, such as metaverse tokens, into its economy.
Their use of blockchain technology enables them to access the wider crypto economy, making virtual items such as avatars and digital land exchangeable for economic value.
Metaverses usually have their own economies and currencies which users can buy, sell, and trade digital items, real estate, avatar accessories, and more.
The metaverse can be accessed by a computer, virtual reality headset, and smartphone.
Although metaverse-like environments have existed in online games for a while now, the use of blockchain, crypto, and VR is altering who can participate and proving the market value of assets and interactions in blockchain games.
Metaverse crypto assets and items, such as digital land and objects, are traded using different types of metaverse tokens.
Their ownership is recorded on the blockchain.
The real world is moving more towards the metaverse. For example, in 2021 Sotheby’s opened a digital replica of its London headquarters in blockchain game Decentraland.
Top 3 metaverse cryptocurrencies by market capitalisation
While crypto metaverses are still in the early stages of development, they offer users new ways to play, invest and interact and to earn money from it all.
1. Axie Infinity (AXS)
Market cap: $8.5billion
Axie Infinity (AXS) is inspired by Pokémon and sees players collect and battle monsters against each other.
The game runs on the Ethereum blockchain with the help of Ronin, a side chain that helps to reduce fees and transaction delays.
Users either battle against computer-controlled Axie teams or live opponents online.
You can play Axie Infinity on PC, Mac, Android, or iOS.
Axie Infinity is built entirely around NFTs and there’s no way to play unless you buy the three Axie NFTs needed to create your first team.
This means getting started on Axie Infinity isn’t cheap and there’s a much larger upfront investment needed than your average PlayStation or Xbox game.
The most affordable Axies available on the marketplace currently are around $130-$150 each meaning you might spend $450 or more building a team.
However, users own their own Axie NFTs and can resell them, plus its “play-to-earn” approach means users are given cryptocurrency tokens – Smooth Love Potion (SLP) – which can be exchanged for money.
Axie owners can loan their NFTs to other players to use and earn with.
In countries such as the Philippines and Indonesia, people are playing Axie to support their families.
You can also breed Axies, which means users have additional NFTs they can sell on the marketplace.
Some Axie NFTs have sold for as much as 300 ETH or more than $600,000 at the time of sale.
Axie Infinity NFTs can be purchased from the Axie marketplace through a Ronin wallet, which you connect to the game.
Once you have a Ronin wallet set up, you can use the Ronin bridge to transfer ETH to Ronin, where it becomes WETH (Wrapped ETH). You can then use this to purchase Axies.
Axis Infinity Shard (AXS) is the native governance token of Axie Infinity.
You can use AXS to pay for breeding fees currently but in the future, Axie Infinity plans to shift into a decentralised autonomous organisation (DAO) in time which will allow community governance. This will mean AXS holders will be able to vote on decisions regarding the game and its development, as well as stake AXS tokens, to earn rewards.
2. Decentraland (MANA)
Market cap: $5billion
Decentraland (MANA) is a virtual reality platform built on the Ethereum (ETH) blockchain that was co-founded by Ariel Meilich and Esteban Ordano and launched in 2017.
Users can buy plots of land that they can navigate, build upon and monetise.
MANA is an Ethereum based token that is burned to purchase NFTs in the platform’s metaverse.
MANA can also be used to buy avatars, names, wearables, and more.
Decentraland is divided into 90,601 pieces of LAND, each of which is represented by an NFT.
Each LAND is 16 square metres and can be found at a specific coordinate in the virtual world.
LAND holders can turn their plot into anything.
MANA holders put forward and vote on policy updates, details around LAND auctions, and the types of content allowed in the metaverse.
Many Decentraland users monetise their LAND by leasing it or advertising on it, while others create and sell items for MANA tokens.
The Sandbox (SAND)
Market cap: $4billion
The Sandbox is a shared online world built on Ethereum.
Users own plots of land represented as NFTs, as well as NFTs for characters and other items.
These LAND plots can be monetised and turned into interactive game experiences, for example, which can also be monetised to generate income for holders.
The Sandbox is made up of three different products, VoxEdit, The Sandbox Marketplace and The Sandbox Game Maker.
VoxEdit allows users to create 3D objects in the metaverse, including animals, people, and tools as well as other items. These objects are known as ASSETS.
The Sandbox Marketplace allows users to sell their ASSETS.
The Sandbox Game Maker allows users to create 3D games for free.
No prior knowledge of coding is needed in The Sandbox.
Users can make revenue in The Sandbox in several ways.
After creating ASSETS with VoxEdit, you can upload them to The Sandbox Marketplace and sell them as NFTs.
ASSETS such as avatars can sell from anywhere between less than 10 SAND to thousands of SAND.
You can also create and monetise your games with The Sandbox Game Maker or earn rewards in other users’ games.
You can also monetise your LAND by renting it to other players or by creating content on it to increase value.
