There’s no denying that 2022 has been quite challenging for the crypto industry. However, amid all the turmoil, one concept that seems to have caught digital currency enthusiasts across the globe is ‘Move-to-Earn (M2E).’ In its most basic sense, the idea is to reward individuals for getting in shape. And while the concept is not new by any stretch of the imagination, it has only been able to garner mainstream traction this year.
Thanks to its novel proposition, the amount of capital that has continued to make its way into this nascent sector continues to grow steadily. In this regard, conservative estimates suggest that the global M2E fitness market will reach a cumulative valuation of $1.2 billion by 2028, growing at a compound annual growth rate (CAGR) of 19.1% over the same period. This is especially impressive, considering that this burgeoning market was valued at just $391.7 million in 2021. In this article, we will list some key trends pervading the M2E market this year.
The Move-to-Earn Sector Continues to Grow: What Drives It?
It is no secret that since the onset of the COVID-19 pandemic, people have got more health-conscious and careful of their physical shape. This is partially driven by the fact that those who are overweight/obese are at a higher risk of contracting and suffering from the long-term effects of the virus.
In this regard, lots of studies indicate that a growing forum of people is continually executing live fitness experiences. For example, the Les Mills Global Fitness Report states that over the last 2 years, many people have started using digital exercise platforms, including those making use of Move-to-Earn. Interestingly, all projects that utilize the basic M2E setup are also employing their own unique spin on the concept. It bears mentioning that some of them went further, building new frameworks on the Move-to-Earn model.
For instance, there is an M2E-based ‘Burn-to-Earn’ framework that offers monetary rewards to users not only for performing simple exercise movements but also for losing weight. B2E incentivizes people to hit the gym regularly and stick to their exercise routines while attaining their personal fitness goals. To elaborate, the project rewards its users for each calorie they burn with its native crypto offering.
From a popularity perspective, Move-to-Earn’s growth is best highlighted by the fact that mainstream brands are continually employing the concept in recent months. For example, RTFKT, the Web3 subsidiary of Nike, recently announced that it was getting ready to launch its first physical Web3 sneaker with the goal of combining the best of the physical and digital worlds.
As per the product’s creators, this bi-dimensional product will take inspiration from the legendary Nike Mag (Back to the Future) sneaker and be called the ‘Cryptokicks iRL.’ It is touted to be the world’s first advanced smart shoe, coming replete with many features such as haptic feedback, Move-to-Earn compatibility, gesture control, wireless charging, etc.
What Lies Ahead?
Regarding how Move-to-Earn can make inroads into the digital mainstream, experts believe the concept will continue seeping into the Web3 ecosystem at an even more rapid pace. This is because Web3 technologies are already incorporated into several traditional gym-based techniques, thus leaving a lot of room for innovation in melding the two worlds.
Another foreseeable trend regarding the Move-to-Earn ecosystem’s growth is how quickly it can incorporate aspects of augmented reality (AR) and virtual reality (VR)-enabled technologies. This is because AR and VR stand to make public gyms redundant, allowing users to work out from the comfort of their homes. Therefore, as we head into a future driven by decentralized technologies, it will be interesting to see how this rapidly evolving market will grow in 2023.
Author: Sebastian Jan Menge is a Dubai-based entrepreneur, a successful crypto investor with 20+ projects in his investment portfolio, and a Web3 enthusiast. Owing to his passion for bodybuilding and medical background, he is well aware of the health issues we face as a society, many of them stemming from a low level of physical activity.