I have been observing the goings-on of what I consider to be the top three blockchain-based virtual worlds (Cryptovoxels, Decentraland, and Somnium Space) for quite some time now. I find it endlessly fascinating.
You might not be aware that all three worlds have assets for sale via OpenSea, which is the world’s largest marketplace for digital goods, including collectibles, gaming items, digital art, and other digital assets that are backed by a blockchain like Ethereum (ETH for short). According to their FAQ, there are over four million items on the OpenSea market, but according to one of my sources, it’s closer to 10 million now.
When discussing these worlds, you will hear the term Non-Fungible Token (NFT) thrown around a lot. An NFT is a unique, distinguishable, indivisible blockchain-based asset which has some sort of monetary value, usually denoted in a cryptocurrency like ETH.
The classic example of an NFT is Cryptokitties, a passionate phenomenon which utterly baffles me. (Then again, I have never understood why breedables became a thing in Second Life, which is the closest non-crypto analogy I can give for NFTs.) The information contained within a non-fungible token is unique to that token, like the colour and design of the stripes on a Cryptokitty, or the location coordinates for a parcel of LAND in Decentraland. This means that one non-fungible token can never be simply swapped, or exchanged, for any other token. Each is unique.
All three of Cryptovoxels, Decentraland, and Somnium Space have both virtual land and virtual items as non-fungible tokens. And you might be as surprised as I was today when, out of idle curiosity, I investigated and discovered just how much money is trading hands per week in these virtual worlds!
Here is a screen capture of the trading volume of the past seven days for both Cryptovoxels and Decentraland, two virtual worlds which have consistently appeared in the OpenSea top 5 list by trading volume:
US$54,000 trading hands in a week is nothing to sniff at (although I suspect significantly more money is still being exchanged in Second Life on a weekly basis). I can now begin to understand how Cryptovoxels’ lead developer, Ben Nolan, can work full-time and be supported financially by his platform! There’s some money to be had here.
In fact, the distributed nature of blockchain ledger-keeping allows anyone to see at a glance how well (or poorly) sales are doing on any blockchain-based platform. Unlike Second Life sales volumes, which are considered confidential, proprietary corporate information by Linden Lab (aside from the occasional statistic tossed out on anniversaries), you can’t hide the information; it is available to anybody who wants to look at it!
(You might be interested to know that the 7-day trading volume in the third blockchain-based platform I mentioned up top, Somnium Space, is about 7.9 ETH, which works out to US$1,134. I am willing to predict that investment in Somnium Space will increase during 2020 to a level comparable with Cryptovoxels and Decentraland. They simply have too much potential to be overlooked, given their planned feature set.)
So do not be tempted to dismiss the blockchain-based social VR platforms and virtual worlds so lightly. People are already avidly buying and selling virtual land, and virtual items such as avatar wearables!
Am I tempted to participate in these markets? Absolutely not. Blockchain/crypto still seems like voodoo medicine to me. My major achievement last month was to successfully transfer a minuscule amount of ETH from one crypto wallet to another, to cover the transaction fee (or “gas”) in order to set up a custom username on Cryptovoxels! (Yes, like Decentraland, you gotta pay. But not as much.)
But it is fascinating to watch all this from the sidelines, nonetheless.
There is also a bar chart in this section of the report that shows you the top non-fungible tokens by trading volume over the past six months:
The market for non-fungible tokens is still quite small, and somewhat harder to measure than the cryptocurrency market given the lack of spot prices for assets. For the purpose of this analysis, we focus on secondary trading volume (i.e., peer to peer sales of non-fungible tokens) as an indicator of market size. Using this metric, we estimate the current secondary market to be roughly $2 – $3 million USD in volume per month. In the last six months, the following projects led the charge:
In this “top ten”, the red arrows point out the trading volume for:
Decentraland (roughly US$1.5 million in trading volume)
Now that I am (finally!) finished my annual holiday tradition of utterly ransacking all the Advent calendars and December shopping events I can find in Second Life—the better to clothe my small army of alts with fashionable freebies!—it is time to turn my attention to predictions for the coming year.
That Second Life would “continue to coast along, baffling the mainstream news media and the general public with its vitality and longevity”, and that “the ability to change your first and last names in SL will prove very popular—and also very lucrative for Linden Lab”. Well, I am going to stick to that prediction. Implementing avatar name changes in SL turned out to be a thornier problem than Linden Lab anticipated, hence the delay, but they now have eight years of pent-up demand for this feature, and I anticipate that it will still prove popular—and profitable—for Linden Lab. I myself upgraded one of my alts to Premium to be able to change her legacy name of Bumbly Rumpler. (I know. I know. I don’t know what I was thinking at the time!) I also snagged her a lovely new riverside Victorian Linden Home in the process.
That OpenSim would move on implementing virtual reality support, but (as far as I can tell), that work has stalled or been abandoned. To be honest, I have barely set foot at all in OpenSim this past year, so I regret that I am not in any position to make predictions for 2020!
However, three blockchain-based virtual world projects appear to be doing well—Cryptovoxels, Decentraland, and Somnium Space—and I expect that they will all continue to do well in 2020. I note that both Decentraland and Cryptovoxels have tended to rank in the Top 5 in sales volume on the OpenSea marketplace (this screencap is from a tweet made Dec. 27th):
I’m already working on a predictions blogpost for the various social VR platforms and virtual worlds in 2020. Among my predictions is the following: if Linden Lab cannot find a way to increase the overall number of users in Sansar within the next 12 months, even with a pivot to (and an exclusive focus on) live events, then the company will do one of three things:
– convert the existing Sansar code to open source and let the community take it over (which I think is the least likely option);
– sell Sansar to another company and keep Second Life running (or perhaps sell off Linden Lab and all its assets entirely to another company); or
– shut down the Sansar project completely (which I think is the most likely option).
In case you haven’t been paying attention, the honeymoon period for Sansar is OVER.
I am increasingly worried (even heartsick) over the future of Sansar.
That “the Oculus Quest VR headset will ignite the long-awaited boom in virtual reality”. I think that we can agree that the Oculus Quest has been a runaway success. Facebook is apparently selling the units as fast as they can make them, and they are now backordered until late February 2020. (The Valve Index is also selling well, and also similarly backordered.) I do predict that this will bring many more people into those social VR platforms which can natively run on the standalone Quest headset, such as VRChat, Rec Room, and AltspaceVR.
O.K., now that we’ve looked at how well my predictions for 2019 have fared, now it’s time to peer in my crystal ball and make some new predictions for 2020.
First, all current social VR platforms and virtual worlds will struggle with a key problem: effective promotion. Getting the word out to the public about the various platforms is proving to be more and more difficult in an age of social media overload and short attention spans.
Second, every single eye will be on Facebook as they launch their new social VR platform, Facebook Horizon, early in the new year. It’s disgusting to me how even the smallest Facebook announcement gets oceans of fawning mainstream press coverage, and you can certainly expect Horizon to suck up all the oxygen in the press room when it gets closer to launch date. If Facebook Horizon, backed by the almost limitless resources and reach of its ambitious parent company, fails to take hold in 2020, then that will be the clearest indication yet that the nascent social VR industry is in trouble (and that I might be out of a job!).
Third, as I have said above, I am extremely worried about Sansar. The Sansar website has recently had a complete redesign to focus almost exclusively on live events:
It would appear that Linden Lab is going all-in on Sansar as a platform for live events, to the detriment of other features such as avatar customization (I don’t expect anything new this coming year). However, competition in the live events market in 2020 is likely to be intense, with the following products also planning to focus on hosting such events:
Upstarts such as Ceek and Redpill VR (which are in various stages of pre-development and may or may not launch in 2020);
Not to mention that Facebook will also want to muscle in on this extremely lucrative territory (with Oculus Venues, and probably Facebook Horizon, too)—and Facebook will not hesitate to ruthlessly use every tool and tactic at their disposal to achieve market dominance (including “hiding” posts about competing platforms in their Facebook, Instagram, and WhatsApp social network users’ newsfeeds). Facebook also has deep pockets to ink deals with major talent, locking them into exclusive deals to appear on their platforms.
Expect many skirmishes on the live events battlefield in 2020, and also expect some causalities to occur.
Fourth, Second Life will continue to coast along as it always does, still boasting approximately 600,000 regular monthly users in recently released statistics by Firestorm, and still making millions of dollars in profits, both for its content creators and for Linden Lab. It’s the gift that keeps on giving, and I see no sign of it stopping anytime soon. I predict that SL will still be around five years, perhaps even ten years, from now, and that people will still be logging in, and still merrily ransacking Advent calendars 😉 …and I will continue to blog about steals, deals, and freebies in Second Life!
Fifth, we can expect to see the upcoming Educators in VR International Summit as an example of an increasingly important use of social VR platforms in 2020: conferences. This is a natural fit, and one that saves precious resources (such as airline fuel) in an increasingly environmentally-conscious world. We can expect to see more conferences and meetings hosted in VR as an alternative to real-world meetings (although, as High Fidelity found out, the remote workteams support marketplace isn’t quite there yet, since the vast majority of companies still expect their employees to show up to their offices rather than work remotely from home). I think it’s going to take another generation for that shift to take effect in any widespread fashion.
Sixth: those social VR platforms which currently lack an in-world economy, currency, and a marketplace for user-created content, will be moving towards implementing those features. VRChat already has a booming off-world economy in the creation and sale of custom avatars. We already know that both VRChat and Rec Room are making plans in this area, based on job postings on their websites, but we can also expect other platforms to take this step, taking their cues from the continuing success of the mature, fully-evolved in-world economy of Second Life.
Platforms where people can make money tend to attract droves of new users, appealing to their greed and the universal desire to strike it rich (Decentraland as a more recent example; although its continued success is not 100% guaranteed, investors have sunk a lot of money into it, and it will be interesting to see how this ultimate expression of virtual, cut-throat capitalism will evolve and grow over the next year).
Finally, at some point Apple (and other companies, including Facebook) will launch the first consumer-oriented augmented reality headsets. The over-hyped Magic Leap One has turned out to be rather underwhelming (and underselling) so far, but who knows? Perhaps future AR products may ignite consumer interest, and have an as-yet-unknown impact on the current crop of social VR platforms.
Perhaps the big bet we all placed on virtual reality has been misplaced? We won’t know the answer to that hypothetical question until at least another decade has passed. Of course, some social VR platforms may decide to extend support to whatever AR/MR/XR hardware becomes available in the future, too. Anything can happen.
So these are my social VR/virtual world predictions for 2020. Please check back in a year, and we’ll see just how accurate I was!
Were you aware that the blockchain-based virtual world Cryptovoxels has a flourishing art scene?
More and more often, I see announcements about art galleries and installations in Cryptovoxels, both regular art and blockchain art (the production of which is described at length in this article). Good sources of information about openings and events are the official Cryptovoxels Twitter and Discord channels.
I am only a couple of blogposts away from my next milestone on this blog: 1,500 blogposts. And it’s probably as good a time as any to calculate some quick statistics on what topics have proven to be the most popular in the two and a half years I have been blogging about (as I state in my blog’s tagline) “news and views on social VR, virtual worlds and the metaverse”.
My coverage of the various social VR platforms and virtual worlds has been quite uneven, with most of my blogging focused on three metaverse platforms to date:
Sansar (the reason I started this blog in the first place)
Second Life (with a focus on freebies)
Of my Top 100 most viewed blogposts since I started this blog on July 31, 2017, you might be interested to learn:
36 were about Second Life
10 were about virtual reality in general
9 were about Sansar
7 were about VRChat
5 were about High Fidelity
4 were about Decentraland
What I find interesting is that there is absolutely no correlation between how often I cover a social VR/virtual world on my blog, and how popular those blogposts are. For example, I write about VRChat much less often than I do about Sansar, yet the VRChat posts are more popular overall. I have written less frequently about Decentraland than High Fidelity over the years, yet more people tend to visit my blogposts about Decentraland.
All this has led me to do some thinking about making changes to what I write about on this blog. In particular, I want to put more effort into covering those platforms which:
show consistently higher levels of usage according to publicly published statistics such as Steam, or
show higher levels of reader interest based on my own WordPress statistics, or
What this means is, going forward, I will be starting to pull back on my formerly heavy coverage of both High Fidelity and Sansar. Both the concurrent usage statistics from places like Steam, and my WordPress stats, tell me that people don’t seem to be as interested in those platforms, so why am I continually writing about them? I do not kid myself that I am going to be able to convince people into visiting platforms like Sansar and High Fidelity via my blog, and frankly, it’s not my job to do their promotion for them. I should be writing more about the state of the metaverse as it currently exists, and spend less time trying to encourage people onto less popular platforms. Therefore, I think it’s time to reign in my coverage of Sansar and High Fidelity.
(As a side note, one of the first changes I see in Sansar, since last week’s announcement of a new focus on live events, is that the number of Product Meetups has been cut in half, to biweekly from weekly. Of course, if you don’t expect to have as many new features coming out in future client updates, it makes perfect sense to have fewer Product Meetups, where those features tend to be discussed. Daily Community Meetups have also been cut to Mondays and Wednesdays.)
Also, I will start paying more attention to those platforms which meet at least one of the three criteria I have mentioned earlier:
Second Life (which is clearly still the most popular part of my blog)
My coverage of Second Life will now expand a little bit from the initial focus on Second Life Steals, Deals, and Freebies, in that I will be commenting more on a variety of topics relating to SL, particularly more announcements of changes to the platform by Linden Lab, and more editorials.
I will also start to write more often about other platforms which I have visited too infrequently, in an effort to even out my coverage of social VR/virtual worlds and provide a better overall picture of the evolving metaverse to my readers:
And, whether or not I am invited to participate in the closed beta early next year, I will of course be writing extensively about Facebook Horizon!
I realize that this decision might be a disappointment to both Linden Lab and High Fidelity (or, perhaps, a relief, given how I have criticized both Sansar and HiFi in the past). But I think it’s time to adjust my blog to the current market realities, much the same as the companies themselves have seen fit to make significant changes this year.