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LAND, the token of metaverse platform Decentraland, is up over 8% on the day, following the release of a report from JP Morgan calling the metaverse a $1 trillion market opportunity.
JP Morgan's report coincided with the launch of the bank's virtual Onyx Lounge in Decentraland's Metajuku district, complete with a wandering tiger as well as a floating portrait of the bank's CEO and noted crypto skeptic Jamie Dimon.
Other metaverse-linked tokens including Axie Infinity and Enjin Coin have enjoyed a bump from the report, up 7.8% and 4.1%, respectively.
In the report, titled "Opportunities in the Metaverse," JP Morgan stated that the niche "will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenues."
The report cited the entry of mainstream brands including Walmart, Nike, and Adidas into the metaverse, prompting business leaders to ask, "What is my metaverse strategy?"
The bank argues that its own "core competencies in crossborder payments, foreign exchange, financial assets creation, trading and safekeeping" will enable it to play a role in the emergent digital environment.
What is the metaverse?
The metaverse is a shared, persistent virtual world in which users are represented by 3D avatars, using technologies such as virtual reality and augmented reality to work and play in these shared spaces.
Crucially, unlike existing video games, the metaverse (theoretically) enables users to move their virtual possessions between different metaverse platforms—with ownership of these items represented by non-fungible tokens (NFTs).
Although the term was first coined in Neal Stephenson's 1992 novel "Snow Crash," it's surged into the popular consciousness in recent months as technology has caught up with the science-fiction writer's vision.
Major tech companies have made moves into the metaverse, most notably Facebook, which last year rebranded as Meta amid a push to redefine itself as a "metaverse first" company.
In the last week alone, a digital land investor Everyrealm raised $60 million in Series A funding, gaming platform The Sandbox launched a $50 million accelerator program and fashion brand Gucci bought up a plot of virtual land in The Sandbox.
And just yesterday, Disney revealed that it has appointed an executive to lead its efforts into the niche, with CEO Bob Chapek describing the digital world as "the next great storytelling frontier."