Trade Idea: Metaverse Resurgence

A resurgence in the Metaverse narrative with the impending launch of Apple's AR/VR technology

May 18, 2023

Intro

You thought the Metaverse was dead? Whether or not you plan to drink virtual coffee every morning, the Metaverse heart is still beating. Rumors circulating around Apple's AR/VR headset, we might see a resurgence in the Metaverse narrative. In case you aren't up to speed in the Web2 space, Apple is expected to release a mixed reality headset later this year, with rumors suggesting it may be revealed at Worldwide Developers Conference (WWDC) 2023 in June. Designed to be a precursor to Apple Glass and the first real Apple product in the augmented reality space, the headset is expected to be like a typical VR headset. In addition, it features several exterior cameras and sensors that allow body tracking and incorporate real-world environments in a virtual space.

Apple's AR/VR headset could be priced above $2,000, feature M1 Pro-like performance - 9to5Mac

Remember back in the bullrun of 2020 and 2021, when the Metaverse narrative was brewing, and Meta served as the catalyst driving retail, institutions, and funds to go all into the Metaverse tokens. You can see how Web2 product offerings can influence crypto investors. Fast forward to 2023, new developments in AR/VR products could propel the Metaverse narrative back to the forefront.

Narratives

Narratives are one of the most significant drivers in the flow of capital. "Crypto narratives" are the overarching stories or themes that guide or inspire the development, adoption, and valuation of cryptocurrencies and blockchain technologies. These narratives often provide a conceptual framework for understanding what a particular cryptocurrency or blockchain project is trying to achieve and why it might be valuable or important. They are often used to persuade and attract investors, users, and developers.

Traders, retail, and institutions either purposefully or inadvertently participate in perpetuating these narratives. In the past few months, we have seen several narratives emerge with correlating price action, including Liquid Staking tokens, AI and Crypto, Shanghai Unlock, and now more recently, Meme digital assets like PEPE, and Milady.

Although it's rumored Apple has purposefully avoided labeling their AR/VR products as Metaverse tools, crypto markets still remain irrational: speculators still will likely interpret this news event as a Metaverse catalyst. To crypto speculators' defense, "If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck." most people would bucket AR/VR in the Metaverse vertical.

Metaverse Explosion in 2021

Let's go back in history a little. In 2021, Facebook's CEO Mark Zuckerberg catalyzed a significant shift in the Metaverse crypto narrative with the company's rebranding to Meta. This new brand, encompassing all of Facebook's various apps and technologies, aims to realize the Metaverse, a digital universe transcending current online social experiences into an interactive three-dimensional realm.

This bold move sparked a significant boom in the Metaverse narrative, which claims we will live in an increasingly virtual world where we might play virtual chess on Friday mornings with coworkers or attend work meetings from Mars. The Metaverse, at the intersection of gaming and daily lifestyle, provided a fertile ground for Metaverse tokens like GALA, SAND, MANA, and AXS, which emerged as some of the top-performing tokens in 2021.

This surge can be attributed to a perfect storm created by the combination of the crypto bull run of 2020 and the proliferating Metaverse narrative, both significantly stimulated by Meta's ambitious vision.

Metaverse Resurgence 2023

More recently, the gaming and Metaverse narratives have become more separate; not all Metaverses are games, and not all games are Metaverses. However, in the eyes of traders and investors, these groups might as well still be joined at the hip.

According to a report by Bloomberg, the upcoming AR/VR products will be capable of running thousands of iPad applications, including games. This development is certainly of interest, particularly given the recent approval of Axie Infinity's launch on the App Store.

These events are indicative of a broader trend of increased interest in the Metaverse space. In light of this, tokens such as AXIE, MANA, and RDNR are already generating buzz on Lunar Crush, a social sentiment platform.

As the Metaverse continues to gain momentum, it will be interesting to see how the following non-exhaustive list of relevant tokens evolves over the coming months. We will closely monitor this space and keep our readers updated on noteworthy developments.

Fin

Though the Metaverse has taken a back seat to newer buzzwords like AI and liquid staking tokens recently, current trends suggest a potential ripe opportunity for the Metaverse narrative to regain prominence in the coming months.

Will the Metaverse be the next major Narrative?

Only time will tell.

Sources

Not financial or tax advice. The purpose of this newsletter is purely educational and should not be considered as investment advice, a request to buy or sell any assets, or a suggestion to make any financial decisions. It is not a substitute for tax advice. Please consult with your accountant and conduct your own research.

Disclosure. All of my posts are my own, not the views of my employer.