5 Charts Illustrating the Metaverse’s Peak and Decline

Just over three years ago, Facebook, Inc. changed its name to Meta Platforms, Inc.

The idea, Chief Executive Mark Zuckerberg explained at the time, was to usher in a new era of the internet where people were “in the experience, not just looking at it.” He defined the upcoming, immersive phase of online communication as “the metaverse,” noting it will “touch every product we build.”

Soon after, the metaverse was everywhere. Brands ranging from H&M to Chipotle to Walmart issued press releases announcing they had entered the metaverse. Macy’s even hosted a virtual version of its Thanksgiving Day Parade in the metaverse.

On Reddit, mentions of the “metaverse” increased by 3,444% in 2021, then another 182% in 2022, according to the company.

But then enthusiasm waned. Funding declined. Deals slowed. Mentions of the “metaverse” on Reddit decreased 88% in 2023, then another 62% during the first half of 2024.

“The initial hype wasn’t backed by fully functional tech, and companies entered without a clear, long-term strategy, leading to half-baked experiences that lost consumer interest quickly,” said Jason Snyder, chief technology officer at creative agency Momentum Worldwide.

Likewise, Michael Olaye, managing director at digital agency Hero Digital, noted plenty of brands have moved on from their metaverse projects as the idea has shifted from mainstream to niche.