According to Citi researchers, the Web3 economy would be worth $13 trillion by 2030.
The positive view is bolstered by increased access to host use cases like commerce, art, media, advertising, healthcare, and social cooperation.
To achieve the estimated five billion Metaverse users, significant infrastructure expenditure is required.
The market's view of the Metaverse has shifted even more positively. The Metaverse is attracting more mainstream players. According to trademark registration files, there has been a significant growth in virtual involvement.
Metaverse-related news has been a primary driver of price action in the broader crypto market. In response to Metaverse-related news updates on Metapolis, Zilliqa (ZIL) has increased by more than 100 percent this week. Zilliqa is the company behind Metapolis.
Banks have become particularly bullish on their Metaverse estimates as a result of the increasing activity and limitless possibilities.
Forecast: $13 Trillion Metaverse, 5 Billion Users
On Thursday, Citi issued a bullish appraisal of Web3.
According to an expert report, the Metaverse will be the next version of the internet, seamlessly linking the digital and physical worlds.
Two projections were made in the report:
Metaverse usage is confined to VR/AR headset users under this definition. Analysts believe that there will be 900 million to one billion users by 2030, with a total addressable market of between $1 trillion and $2 trillion.
The Metaverse has unique internet users, hence this is a broad description. Analysts believe that there will be 5 billion users by 2030, with a total addressable market of $8 trillion to $13 trillion.
Citi sees gaming as the most common Metaverse application. Analysts predict that the Metaverse will spread, allowing people to discover new ways to carry out routine tasks.
'In the next few years, internal collaboration, client interaction, sales and marketing, advertising, events and conferences, engineering and design, and workforce training will likely be among the Metaverse's enterprise use cases.'
The paper did point out that the internet infrastructure is insufficient for 'creating a fully-immersive content streaming Metaverse environment' in its current state.
Integration of the Metaverse with the real world will necessitate a significant expenditure. Low latency is seen as a vital component in offering a satisfactory user experience.
The paper emphasizes the necessity for sub-12ms latency and better network rates for a completely immersive Metaverse experience.
NFTs will likewise play an important role in the Metaverse. NFTs can be stored in digital wallets and carried around the Metaverse by users.
Big Names Support Citi's Outlook in the Metaverse
Since the beginning of the year, mainstream interest in Web3 has increased dramatically. Corporations from a variety of industries have entered the Metaverse or applied for Metaverse-related trademarks.
McDonald's entered the Metaverse in February, providing fans with a virtual experience to commemorate the Lunar New Year.
The Sandbox (SAND) was purchased by Warner Music Group, and the fashion sector is likewise turning virtual.
Decentraland (MANA) had a four-day fashion week last week, with significant personalities in the industry in attendance.
Web3 has been adopted by sport as well. Tennis Australia went virtual for the Australian Open in January. Melbourne Park was made virtual for fans via the Metaverse.
JPMorgan had seen increased activity early this year.
JPMorgan Buys Land for $1 Trillion Metaverse
JPMorgan bought land in Decentraland in February, putting its money where its mouth was. The American investment bank is optimistic on the Metaverse, predicting a market worth $1 trillion.
JPMorgan spoke on the Metaverse's unlimited possibilities, which include everything from virtual workspaces to music artists holding concerts. As a result of these potential, the bank expects a wide range of businesses to enter the Metaverse.
JP Morgan drew attention to a number of concerns that need to be addressed. These activities range from taxation to policing.
The more bullish estimates will likely have a cascade effect as more industries enter the Metaverse, speeding up infrastructure investment and mainstream acceptance.
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