The Rise and Fall of the Metaverse: Is a Resurgence Possible?

Facebook’s Meta Rebrand Sparks Metaverse Craze

Initial Enthusiasm

A little over three years ago, Meta Platforms, Inc. (formerly Facebook, Inc.) embraced the concept of the metaverse, envisioning a new era of immersive online experiences where users are actively engaged in the digital realm.

Metaverse Hype Peaks

Following the rebranding, the metaverse trend exploded across various industries, with companies like H&M, Chipotle, and Walmart eagerly announcing their foray into this virtual domain.

Decline in Metaverse Interest

As time progressed, the fervor surrounding the metaverse began to wane, with funding decreasing, deals slowing, and consumer interest dwindling due to underdeveloped technologies and lack of long-term strategies.

The Charts: Tracking the Metaverse Phenomenon

Surge and Retreat in Metaverse Mentions

Mentions of the metaverse surged online post-Meta rebranding, but have since experienced a decline, despite intermittent spikes related to new developments.

Corporate Engagement in the Metaverse

Similarly, corporate mentions of the metaverse in press releases and earnings calls peaked in 2022 but have tapered off over time, indicating a shift in interest among S&P 500 companies.

The Future of the Metaverse

Current State of Metaverse Investments

Global investments in metaverse companies have slowed down in recent years, with fewer deals and reduced funding, reflecting a dip in overall industry interest.

Potential for Metaverse Resurgence

Despite the downturn, industry experts foresee a potential resurgence in the metaverse as technology evolves and brands focus on delivering more practical, value-driven experiences to users.