JPMorgan Launches A Virtual Lounge, Says Metaverse A $1 Trillion Market Opportunity

JPMorgan took its first step into the Metaverse, becoming the first bank to open a virtual lounge in the popular blockchain-based realm, Decentraland.

The bank launched the "Onyx lounge" alongside a report explaining Metaverse-related corporate development potential and reasons for the bank's "explosive interest." Onyx lounge is the name for the bank's suite of Ethereum-based services.

In the report published by the American investment bank, "Opportunities in the Metaverse: How businesses can explore the Metaverse and navigate the hype vs. reality," managing directors Christine Moy and Adit Gadgil have sketched up a theoretical Metaverse future. They said in it that the Metaverse might be a $1 trillion yearly market potential as "it will likely infiltrate every sector in some way in the coming years."

According to JPMorgan, the Metaverse offers a $1 trillion annual revenue market opportunity as artists use Web3 to commercialize their work innovatively.

According to the research, "This democratic ownership economy coupled with the possibility of interoperability, could unlock immense economic opportunities, whereby digital goods and services are no longer captive to a singular gaming platform or brand."

According to statistics gained from four prominent Metaverse sites, the average price of virtual land increased from $6,000 to $12,000 in six months last year. According to the bank, in-game advertising spending will reach $18.4 billion by 2027.

Although the Metaverse has changed "very quickly," and it is "difficult to build a business strategy on such a dynamic space," JPMorgan says the risk of "falling behind" is worth the "first expenditure required to get started."

JPMorgan's Metaverse action came on the heels of Morgan Stanley's similar client letter last month. Stanley's analysts say that the Metaverse's initial total addressable market (TAM) in China will be around $4 trillion, as it replaces mobile internet with a more "immersive experience." That sum is expected to rise to $8 trillion if the Metaverse begins "disrupting offline activities," such as real-estate showings, automobile test drives, and schooling.

Over the last six months, the Metaverse has emerged as a critical trend in the crypto industry, and other institutional actors have made similarly big predictions about its future.