Morgan Stanley calls Metaverse the next big investment theme, gripping the crypto world

    16 Nov 2021

    Investment bank Morgan Stanley has stated the metaverse is now the next big investment theme, in a note directed to investors on November 11. Strategists from the bank believe this alternate conception of reality is amassing important interest from companies like Facebook (now Meta) and Microsoft, which are already trying to grasp the concept. And lately, the metaverse mania has gripped the crypto sector.

    In a note shared with investors, the investment giant predicted that the Metaverse projects would dominate the majority of the investment in the coming years and also pointed towards the surging stocks of companies involved with Metaverse development. The idea behind Metaverse is to create a parallel virtual world quite similar to the physical one, but instead of playing one particular game, users will play “real-life” in the virtual world.

    “Newsflow around the metaverse concept has been high, and companies are embracing it in growing numbers. Of any major theme, companies and analysts have a greater interest in the metaverse than any other theme at present,” read the note.

    The investor’s note also pointed towards the surging prices of stocks of the tech companies and gaming companies, who have built a miniature metaverse and they have seen a mammoth growth in the past month since Facebook rebranded itself to Meta.

    Morgan Stanley has predicted that the metaverse projects would dominate the majority of the investment in the coming years.

    “It can fundamentally change the medium through which we socialize with others,” stated Morgan Stanley strategist Edward Stanley.

    Anyone could study and speculate on digital assets such as non-fungible tokens (NFTs). As mentioned before, more and more companies are moving to include these activities and elements in their projects. Companies such as Roblox, Naver, and others are all currently building metaverses on their own company platforms. And recently, Disney expressed its interest concerning this theme too.

    Metaverse as a concept is catching up fast with the decentralized community quite similar to the surge in popularity of NFTs.  Now investment banks have started to issue investor notes regarding the same, thus it’s quite certain that it would define the investment theme for the investors.

    In addition to this, the target audience for the metaverse at present is young gamers.

    “The average age is rising and could be accessed over phone or PC gaming platforms,” the report noted.

    This is another reason why crypto gaming, incorporating NFTs, is booming as well. Some also agree that the gaming and metaverse combination could onboard a billion users into this sector. Over the last month, the metaverse mania had gripped the crypto sector. Metaverse tokens have seen hyped rallies and plenty of social media attention. As a result, their market cap stood at $27.8 billion, with an 8.6% surge in 24 hours.

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