What Is the Metaverse? Crypto, NFTs and Virtual Worlds Explained

In late 2021, Facebook renamed itself Meta and announced it was betting its future on the metaverse. The term dominated tech headlines for two years. By 2023, interest had faded dramatically. By 2026, “the metaverse” means different things to different people — some of which are real and growing, some of which remain largely theoretical.

This guide explains the concept clearly and honestly, including what has and has not materialised.

What Is the Metaverse?

The term “metaverse” was coined by science fiction author Neal Stephenson in his 1992 novel Snow Crash. It describes a persistent, shared virtual world where people can interact, work, and play through digital avatars.

In practice, different companies and communities use the term to describe quite different things:

Meta’s version (Horizon Worlds): VR-first social spaces where users navigate as avatars. Struggled with user adoption — peak concurrent users were far below projections, and the graphics were widely mocked. Meta has spent over $50 billion on its metaverse division with limited visible consumer success as of 2026.

Gaming metaverses (Roblox, Fortnite, Minecraft): Persistent virtual worlds with millions of daily users, virtual economies, and user-created content. Roblox has 88 million daily active users in 2026. These are arguably the most functional “metaverses” in existence — they were just not marketed that way until recently.

Blockchain metaverses (Decentraland, The Sandbox, Otherside): Crypto-native virtual worlds where in-game assets and land are represented as NFTs owned by users. The promise is true digital ownership — your land and items cannot be confiscated by the game developer. The challenge has been that these worlds have relatively few active users compared to traditional gaming platforms.

Blockchain Metaverses: What Was Built

Decentraland was one of the first blockchain metaverses, launching in 2020. Virtual land parcels are NFTs sold on the Ethereum blockchain. Major brands including Samsung, Sotheby’s, and Atari built virtual presences there. At peak in 2021-2022, individual land parcels sold for over $1 million.

The reality has been more modest. Daily active users have generally been in the thousands — not millions. Virtual land prices have fallen 90%+ from peak. But the protocol continues operating and developing, with governance controlled by MANA token holders.

The Sandbox follows a similar model: virtual land (LAND) and assets as NFTs, with the SAND token for governance and purchases. It has attracted more mainstream brand partnerships than Decentraland — Adidas, Gucci, and The Walking Dead have all built experiences. User numbers remain modest compared to traditional gaming.