Quicktake:

• Metaverse’s Evolution: Despite the decline in hype, consumer brands continue to engage with the metaverse.
• Valuations Soar: The Sandbox achieves a $1 billion valuation.
• Personal Encounter: Engaging with quirky avatars like a giant red prawn in Decentraland.
• Brand Engagement: McDonald’s launches its second metaverse experience, targeting new markets.

The once-buzzing excitement surrounding the metaverse may have dimmed, but consumer brands still see potential in these virtual spaces. Recently, I revisited Decentraland, a platform that once promised to be the future of digital interaction. This journey took me through a mix of nostalgia, technical glitches, and unexpected encounters, revealing how the metaverse is evolving and why brands remain interested.

My return to Decentraland was far from uneventful. As I navigated a simulated traditional Chinese village, a giant red prawn fell from the sky, attempting to engage me in conversation. Technical difficulties quickly surfaced as the prawn and I struggled with mic issues. We eventually resorted to using Google Meets in the background to communicate effectively. This whimsical start set the tone for our exploration of the metaverse’s current state and its business implications.

The prawn, adorned with blue and yellow wings and an Ethereum logo floating above his head, was quick to critique my avatar’s drab appearance. In contrast, I had once sported pastel pink anime hair and a floating animal sidekick. My current avatar, limited to the default wearables from Decentraland’s avatar editor, clearly didn’t meet the prawn’s standards. He generously offered to send me some of his castoffs to improve my virtual wardrobe.

Despite my initial setbacks, it became clear that Decentraland hasn’t changed much since the metaverse craze peaked in 2021. The digital playground remains basic and buggy, yet it retains a unique charm. The appeal lies in the freedom it offers users to build and explore whatever they imagine, although the need for expensive land NFTs remains a barrier.

The metaverse’s allure was evident when Facebook rebranded to Meta in late 2021, promoting the metaverse as the future. However, the legless avatars and other quirks in Meta’s vision didn’t resonate well with the public. As interest waned and the metaverse became a punchline for the excesses of web3, platforms like Decentraland continued to chug along, quietly building their virtual worlds.

Surprisingly, some platforms have thrived. The Sandbox, another prominent metaverse operated by Animoca Brands, was recently valued at $1 billion following a $20 million fundraising deal. Decentraland itself was valued at $1.2 billion in 2022. Even Second Life, a precursor to modern metaverses, continues to operate with around 750,000 monthly active users.

Brands have also maintained their interest in the metaverse. In May, Visit Wales announced an immersive experience on the Spatial platform, demonstrating the diverse applications of virtual worlds. McDonald’s, a global fast-food giant, has also dipped its toes into the metaverse. Last year, it launched McNuggets Land in The Sandbox, targeting the Hong Kong market. Despite some technical glitches, the effort showed McDonald’s commitment to exploring new marketing channels.

This year, McDonald’s introduced another metaverse experience, this time aimed at Singaporeans. Although I couldn’t access it from Hong Kong, I found a close enough substitute in Decentraland, where I met the giant red prawn behind the project. In real life, the prawn is Clarence Chan, founder of Bandwagon Labs, a digital marketing studio in Singapore that creates metaverse experiences for brands. Chan, who even got married in The Sandbox in 2022, exemplifies the deep connection some have with the metaverse.

As we strolled through Decentraland with Chan and his team, it became clear that brands are leveraging the metaverse to find new ways to connect with audiences. Chan pointed out that while most brands have a social media presence, the metaverse offers a less crowded, more innovative space. However, the challenge remains to make these virtual experiences engaging and accessible to a broader audience.

The metaverse’s journey from hype to a more tempered reality highlights its potential and challenges. While technical issues and accessibility remain hurdles, the ongoing interest from major brands indicates that the metaverse still holds promise. Whether it’s for marketing, social interaction, or digital creativity, platforms like Decentraland and The Sandbox continue to evolve, offering glimpses of what the future might hold.

In conclusion, my return to Decentraland underscored the persistent appeal of the metaverse. Despite the initial hype fading, consumer brands like McDonald’s and innovative companies like Bandwagon Labs are finding value in these virtual worlds. The metaverse may not be the revolutionary future some envisioned, but it remains a dynamic space with unique opportunities for connection and creativity. As technology improves and more users engage, the metaverse’s role in our digital lives is likely to grow, blending novelty with practical applications.