Non-Fungible Tokens (NFTs) and the Metaverse are currently seeing a rise in both status and adoption that have never been seen in both industries. According to DeFiPulse, the Total Value Locked (TVL) in Decentralized Finance (DeFi) is currently around at $100 billion. The industry has made giant strides and this is obvious when we look back at 2020 when the TVL in DeFi grew from $700 million to $15 billion (which was still very outstanding). In a similar vein, 2021 has been quite the year for NFTs. In the first half of 2021 alone, NFTs saw a whopping $2.5 billion transacted in sales volume and that figure surged to $10.7 billion by the third quarter of the year as the crypto asset frenzy hit new highs.
If you’re reading this and wondering what is going on, perhaps you need an introduction to what NFTs are and what the Metaverse is. NFTs are digital tokens that use blockchain technology to record the ownership of digital items like arts, videos, music, collectibles and even land in virtual worlds. This is a perfect segue to the issue of the Metaverse.
The Metaverse is a virtual world that allows users to create and form virtual communities with people from all over the world. People can meet, work, play and have social gatherings by using devices like augmented reality glasses and virtual reality headsets.
Metaverse and the Metaverse Farmer
Like DeFi, yields and farming are terms that are also being used in the Metaverse (even though it isn’t as popular as it is in DeFi). Farming in the Metaverse is a relatively new feature and this is why the Metaverse Farmer (MVF) investment strategy — the world’s first DeFi Metaverse Index Fund — is set to help Metaverse investors profit from the blockchain gaming and NFT trends. Normally, Index Funds are the go-to investment option for people looking to expose their portfolio to a broader asset or sector but the Index Fund being offered by DAOventures is completely based on-chain and it is taking advantage of innovations in the DeFi space to maximise yields.
The Metaverse Farmer is an Index Fund with yields that spreads an investor’s capital across a carefully curated list of cryptocurrencies. Some of the criteria that qualify projects to be considered by the Metaverse Farmer are Market capitalization, development and User Growth. Illuvium for example has a market cap that is over $581,000,000 while Axie Infinity recently recorded 1 million daily active players on the platform.
Assets Used in This Investment Strategy
The cryptocurrencies being invested in are the utility and governance tokens for these projects in the fast-growing Metaverse sector. This farm is built on the Ethereum Network and is automated by smart contracts. The majority of the Index is held in ETH (37.5%) and the rest is divided between some of the most popular NFT gaming platforms like Axie Infinity (AXS and SLP 10% & 7.5% respectively), Metaverse Index (MVI 25%), Illuvium (ILV 10%), Aavegotchi (GHST 5%) and Revv Racing (5%).
How These Assets Are Performing
All of these assets used in this investment strategy are doing extremely well. Axie Infinity for instance, which is a blockchain-using metaverse project and the most popular crypto game right now recently hit a $3 billion equity valuation and $30 billion fully diluted valuations. Its native token AXS at the time of writing is trading at $140. And according to Token Terminal, about $28.9 million in revenue is being driven weekly.
SLP the in-game reward token is currently trading at $0.076 and has served as a form of reward, giving a financial reprieve to millions of players around the world.
Since reaching a low of $0.896 in June, DeFi focused NFT platform running on Aave protocol Aavegotchi, has seen its price undergo a 202% rally that saw it reach a record high of $2.74 in August. This is according to data from TradingView. As momentum continues to build on NFTs, Aavegotchi is preparing to increase the number of collectibles in its ecosystem and this will possibly increase the value of GHST. GHST (Aavegotchi’s token) is currently trading at $2.558 which is not far from its all-time high.
Metaverse Index (MVI) which is a tracking token designed to capture the trend of sports, entertainment and business that is shifting to a virtual environment created by IndexCoop in April has a market cap of $41 million. In the last 7 days, MVI has seen its price rise by 49.05% and in the past 24 hours, an increase of 27.67%. The current price as at writing is $224 per MVI which is about 13.20% below the all-time high of $258.12.
Illuvium which is a Free-to-Play RPG NFT game built on Immutable X that offers ERC-20 token illuvial ($ILV) to players has recorded bullish momentum since the start of July 2021. ILV reached a high of $1,047.74 in the last month and currently trades at $993. Apart from being a blockchain game, Illuvium boasts several features that make it stand out. These features include:
- The in-built decentralized exchange (DEX), IlluviDEX.
- Layer-2 Integration
- Yield Farming
REVV is the utility token used as an in-game currency in the blockchain motorsport game Revv Motorsport. The REVV ecosystem engages in a cross-promotional deal with a subsidiary of its developers Animoca Brands, The Sandbox (SAND). This partnership led to players of Revv receiving unique REVV-branded Sandbox NFTs for providing liquidity to the REVV/SAND trading pair.
Having reached an all-time high of $0.64 in April, Revv currently trades at $0.23 with a Marketcap of $62,668,671.
The Metaverse Farmer doesn’t just provide exposure to the metaverse industry, it also takes advantage of yield farming (a household term in DeFi) by providing liquidity with and receiving fees in return. Reduction in the volatility of portfolios and the opportunity for investors to earn more incentives are just some of the unique benefits of this investment strategy. The cryptocurrencies in the portfolio have ETH as their base pair and after pairing, they earn trading fees and liquidity mining rewards after being deployed into trading tools on the popular decentralized exchange SushiSwap.
When these pairs are deployed on SushiSwap, this is what the portfolio looks like:
Why You Should Invest in the Metaverse Now
Even though the concept of the Metaverse has been around for some decades now, the technology hasn’t fully gained the kind of awareness of something as huge as it should have. However, in recent times, that seems to be changing and more and more big players in the tech industry are starting to get involved.
A case in point is Facebook, whose owner Mark Zuckerberg has even gone as far as saying he doesn’t want Facebook to be known as a social media company but as a Metaverse company. To show how serious he is about this, the social media giants have gone on to change their corporate name from Facebook to Meta as part of their rebrand.
Moves like this point to the fact that the Metaverse will get more adoption and it would be a lot more than what it is today. There are three features early adopters of this technology would enjoy;
- and Standardisation.
Practically every industry will be affected by the Metaverse and it will give birth to hundreds and thousands of business opportunities.
Investing now in this space makes you a pioneer investor which means you get to enjoy the many other innovations that are sure to happen. Think about this as if you had gotten into Bitcoin in 2009 or 2010 when it was still a very new concept. Yes, that’s what the Metaverse is right now.
If you’re wondering how investing in this space works, perhaps you should start by looking at what is being done at DAOventures.
DAOventures is a multi-chain DeFi investing platform for fund managers and crypto investors. Its mission is to make DeFi simpler, more accessible, and inclusive. DAOventures is a team of engineers, researchers, crypto-investors, DeFi & NFT adopters, and problem solvers who want to build and accelerate the future of money, together.