Kraken Intelligence claims that the market for products for the metaverse, which overtook the market for traditional cryptocurrencies in terms of profitability in 2021, gave way to bitcoin and anonymous cryptocurrencies in May 2022.
Analysts of the research division of the Kraken crypto exchange posted a report stating that last year, companies developing content for the metaverse reached their peak profitability, outperforming other digital assets.
The experts clarified that we are talking about the tokens of the Decentraland (MANA), The Sandbox (SAND), Axie Infinity (AXS), ApeCoin (APE) and STEPN (GMT) projects, which were especially in demand among investors in 2021.
“Looking at the results for the year, the Metaverse sector significantly outperformed the market year-on-year with +395% returns,” the report says.
At the same time, Kraken analysts admit that the metaverse project market suffered the biggest losses since its inception in May.
“All sectors of the metaverse showed negative dynamics in May. Investors invested in Layer-1, Metaverse and Meme Coin led the positions with the biggest losses this month with returns of -43%, -42% and -39% respectively. Against this background, bitcoin and anonymous cryptocurrencies performed best in relative terms, -17% and -19% respectively,” the researchers said.
The report says that in May, large bitcoin holders with wallet balances between 1,000 and 10,000 BTC showed unexpected calmness:
“This has been a relatively quiet month for BTC whales. The number of bitcoins held by large investors decreased slightly from 8.07 million to 8.04 million compared to April, while the number of BTC whales themselves decreased from 2,280 to 2,212.
The report says that since May 10, the activity of large investors in the Ethereum market, on the contrary, has increased markedly. This happened when the amount of ETH they held peaked at $81.8 million and then plummeted to $81.6 million by the end of the month. Just like with Bitcoin, the number of large Ethereum holders skyrocketed in the middle of the month, from 1,302 to 1,308.
The South Korean authorities are going to spend $117.1 million on investments in the metaverse. This is the first time that a state has officially allocated money for the development of virtual reality. In total, South Korea intends to invest $185 million in the creation of its own metaverse.
Source: Bits
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