## Appendix: Contextualising the Web3/NFT/Metaverse Hype (2021-2023) #### Contents As noted in the main text, the period roughly spanning **2021 to early 2023** saw a significant surge in discussion, investment, and media attention surrounding a cluster of related concepts: 'Web3', Non-Fungible Tokens (NFTs), virtual goods (including virtual fashion), and the Metaverse. Understanding the intensity of this "buzz" provides context for subsequent technological developments and shifts in focus. Key markers of this period include: ### 1. The NFT Market Explosion (Peak 2021) NFTs transitioned dramatically from a niche blockchain concept to mainstream headlines. - **Market Activity:** Estimates suggest the market saw explosive growth, with one source indicating approximately **$41 billion worth of crypto spent on NFT marketplaces in 2021 alone**[^1]. The number of active wallets also grew significantly during this time. - **Record-Breaking Sales:** High-profile art sales captured global attention. Most famously, digital artist Mike Winkelmann (Beeple) sold **"Everydays: The First 5000 Days" as an NFT for $69.3 million** via Christie's auction house, with the sale closing on **March 11, 2021**[^2]. This momentarily made Beeple the third-most expensive living artist at auction. Other multi-million dollar sales followed, involving collections like CryptoPunks and artists like Pak. ### 2. Virtual Fashion & Brand Engagement Major brands, particularly in luxury fashion, began experimenting with NFTs and virtual goods. - **Examples:** Dolce & Gabbana launched initiatives like their **#DGFamily NFT community in February 2022**[^3] and subsequent collaborative NFT drops, signalling the fashion world's engagement with virtual assets and digital ownership concepts. ### 3. The Metaverse Goes Mainstream While the concept wasn't new, corporate investment significantly raised its profile.[^4] - **Meta's Pivot:** Facebook, Inc.'s high-profile rebranding to **Meta Platforms, announced on October 28, 2021**, represented a major strategic commitment to building a metaverse and dramatically boosted mainstream awareness and discussion of the term. ### 5. The Context of a 'Hype Cycle' This period aligns closely with established models of technology adoption. Industry analysts like Gartner[^5], using their Hype Cycle methodology, placed NFTs and related Web3/Metaverse concepts firmly near or at the **"Peak of Inflated Expectations" during 2021-2022**. This phase is characterized by intense media interest, significant venture capital investment driven by high expectations, and early adoption, often preceding a "Trough of Disillusionment" where limitations become clearer and hype subsides. In summary, the 2021-2023 timeframe accurately represents a period of peak hype, intense speculation, and initial high-profile experimentation surrounding Web3, NFTs, virtual goods, and Metaverse concepts. This context is crucial when evaluating the subsequent evolution, practical application, or scaling back of these technologies and ideas. --- ### References [^1]: NFT market data for 2021 discussed in: [How NFTs Grew by More than 26000% in 2021 versus 2020? - Appy Pie Design](https://www.appypiedesign.ai/blog/nft-growth-story) [^2]: Details of Beeple sale and market context: [Two Years since the Historic Beeple Sale, What's Happened to the NFT Market? | Artsy](https://www.artsy.net/article/artsy-editorial-two-years-historic-beeple-sale-happened-nft-market) Beeple sale details and subsequent sales: [Beeple | Digital art and NFTs for sale, auction results and history - Christie's](https://www.christies.com/en/artists/beeple) [^3]: Dolce & Gabbana DGFamily launch: [#DGFamily NFT Community - World - Dolce & Gabbana](https://world.dolcegabbana.com/news/dgfamily-nft-community) Dolce & Gabbana NFT collaboration example (Dec 2022): [InBetweeners to Drop Exclusive Dolce & Gabbana Partnered NFTs - NFT Plazas](https://nftplazas.com/inbetweeners-dolce-gabbana/) [^4]: Meta rebranding date: [Meta Platforms Rebranding - BBC](https://www.bbc.co.uk/news/technology-59083601) [^5]: Based on analysis of Gartner Hype Cycle trends described in: [NFT Trends in 2023: What Can We Expect? - Step3](https://www.step3.io/post/nft-trends-in-2023-what-can-we-expect)