A recent report by the Dubai Multi Commodities Center (DMCC) forecasts a substantial surge in the metaverse market, projecting it to reach $3.4 trillion by 2027. The report attributes this growth to the emergence of practical applications and rapid advancements in artificial intelligence, alongside the expansion of the global decentralized finance (DeFi) market. The DeFi market is anticipated to escalate from $13.6 billion in 2022 to $600 billion by 2032, driven by the escalating demand for accessible and lower-fee financial services.
Released as a special edition of DMCC’s “Future of Trade” series, the report focuses on the “Web 3” sector, addressing key drivers of growth, innovation, and digital decentralization across various technological trends. It delves into market expectations and opportunities pertaining to blockchain-based digital infrastructure, including crypto assets, decentralized finance, and metaverses.
Titled “Digital Decentralization: Cryptoassets, Decentralized Finance, and the Metaverse,” the report assesses recent challenges facing these sectors and provides insights into the expected timeframe for the maturity of these technologies. It anticipates the crypto-assets market to stabilize following a period of volatility, highlighting the sector’s renewed focus on stable services capable of adding value.
The report emphasizes the significance of regulatory frameworks and their role in balancing innovation, consumer protection, and fraud risk mitigation. It discusses government approaches in regions like the Middle East, North Africa, Asia, Europe, and the United States, highlighting initiatives such as innovation centers in the United Arab Emirates aimed at attracting crypto asset investments.
Ahmed Bin Sulayem, Senior CEO and Executive Director of DMCC, commented on the report, noting the exceptional growth anticipated in the “Web 3” sector. He underscored the pivotal role of Dubai and the UAE in supporting this growth through appropriate methodologies that balance innovation and consumer protection needs.
Bilal Jassouma, Director of Business Systems at DMCC, highlighted Dubai’s position as a hub for “Web 3” companies, emphasizing the city’s proactive approach in setting regulations, collaborating with market leaders, and offering abundant opportunities for innovation and growth through initiatives like the DMCC Crypto Center.
The report offers regulatory and commercial recommendations to foster the development of the “Web 3” sector, emphasizing principles-based regulations, stakeholder engagement, and investment in education and talent. It stresses the importance of immediate action by companies to adopt “Web 3” technologies to remain competitive and mitigate risks.
