and the distribution of digital products.
State of Futureverse Q4 2024
- ROOT’s market capitalization increased 131% QoQ in Q4 2024, rising from $22 million in Q3 to $50 million, driven by a 66% QoQ increase in token price.
- Total transaction fees rose 14% YoY to $13,000, while transaction count dropped 13% YoY to 17,000.
- The ASTO market cap increased 174% QoQ, from $10 million in Q3 2024 to $27 million in Q4 2024.
- Girin Labs, in partnership with Futureverse, launched the Girin Wallet, a non-custodial wallet integrated with The Root Network and XRPL.
- AI-generated transactions on XRPL reached over 334,000, with NFT mints exceeding 4 million following Jen’s beta launch last month.
- Updates to the authentication SDK introduced improved user interfaces and OAuth features, while ASM’s Altered State advanced toward alpha testing, showcasing the potential of generative AI for creating detailed 3D models.
Futureverse, founded in 2022, integrates blockchain, AI, and immersive experiences to build a decentralized metaverse. Formed from the merger of 11 companies, it offers a unified ecosystem with a three-layer technology stack:
- Infrastructure Layer (Root Network): A Layer-1 blockchain with EVM compatibility, asset interoperability, multi-token economy, and NFT-specific runtime. Its modular design allows app creation and asset management without coding expertise. The Root Network uses XRP as its primary gas token, ensuring XRPL interoperability, while its "Any-Token Gas" system allows seamless fee payments in multiple approved tokens.
- Protocol Layer: Includes decentralized identity (DID), secure data storage (SSDS), access control (Doughnuts), and communication (Sylo Network) protocols, enabling secure data sharing and decentralized messaging. Altered State Machine (ASM) powers user-owned AI models for intelligent interactions.
- Content Layer: Engages users with NFT assets, gamified experiences, and AI-driven narratives.
Futureverse’s multi-token economy, led by ROOT, supports governance, staking rewards, and ecosystem activities. For a full primer on Futureverse, refer to our Initiation of Coverage report.
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Key Metrics
NFT Activity Futureverse hosts various unique NFT collections, each contributing to the broader ecosystem's engagement and appeal. Some notable collections include ASM AIFA All-Stars, ASM Aifa Genesis, and ASM Brains, which are part of the Altered State Machine (ASM) ecosystem, leveraging AI technology to enable dynamic, evolving NFTs. Collections like ATEM Membership Cards and Dr. Grordborts: Rayguns offer unique utilities and high-quality collectibles with strong storytelling elements.
The FLUF World ecosystem stands out as a cornerstone of Futureverse, with sub-collections such as FLUF World: Burrows, FLUF World: Buzzies, and FLUF World: EGGs, offering immersive metaverse experiences. Other collections, like Muhammad Ali: The Next Legends, which features Boxers and Gym Bags, tap into sports fandom and digital identity. Additionally, PartyBear and The Seekers cater to niche communities within Futureverse, providing interactive and engaging collectibles.
NFT activity on The Root Network in Q4 2024 remained subdued, with total sales (USD) holding steady at $1.1 million, unchanged from Q3 2024. However, this represents a sharp 71% YoY decline compared to $3.7 million in Q4 2023, reflecting continued contraction in market value. Similarly, the total sales count increased 21% QoQ, from 3,800 in Q3 to 4,200 in Q4, but was still 54% lower YoY, down from 10,000 in Q4 2023.
Despite an increase in sales count, the stabilization of sales value QoQ suggests a shift toward lower-value transactions. This aligns with broader NFT market trends, where speculative activity has diminished, and buyers have shown greater interest in more accessible assets. The lack of high-profile NFT releases or major promotional events in Q4 likely contributed to subdued performance, as did macroeconomic factors impacting discretionary spending.
ROOT Market Cap
The ROOT token’s market capitalization rose to $50 million in Q4 2024, marking a 131% QoQ increase from $22 million in Q3 2024, as its price climbed 66% QoQ, from $0.02 to $0.03. However, ROOT’s market cap declined 51% from $102 million at the start of the year, while the token price fell 23% YoY, dropping from $0.04 in Q4 2023.
ASTO Market Cap
ASTO is the native token of the Altered State Machine (ASM) ecosystem, a core element of Futureverse's vision for an open metaverse. ASM integrates AI with blockchain to create intelligent, adaptive NFTs that evolve based on user interactions and environmental factors. ASTO serves as both a utility and governance token, enabling activities such as training AI models, facilitating interactions, and powering transactions within the ecosystem.
ASTO's market capitalization fluctuated significantly over the past year. It peaked at $46 million in Q1 2024, driven by ecosystem activity and speculative interest, but declined sharply in subsequent quarters, falling 72% QoQ to $13 million in Q2 and further to $10 million in Q3 2024. In Q4 2024, ASTO's market capitalization increased 174% QoQ to $27 million, reflecting a 10% YoY growth from $25 million in Q4 2023. This recovery is likely driven by advancements in ASM’s AI protocols and renewed interest in the ecosystem, reversing declines from earlier quarters.
This recovery aligns with advancements in ASM’s AI protocols, growing integration with the THINK Protocol, and renewed interest in AI-powered assets within the Futureverse ecosystem. The transition toward on-chain AI agents and Non-Fungible Intelligence (NFI) could further impact ASTO’s role and adoption in Q1 2025 and beyond.
Network Activity
Total fees on The Root Network stem from transactions and associated costs. In Q4 2024, transaction fees on The Root Network decreased 31% QoQ, from $18,000 in Q3 to $13,000, but rose 14% YoY from $11,000. Total transactions also fell 33% QoQ, from 25,000 to 17,000, and declined 13% YoY from 19,000. Despite the YoY drop in transaction volumes, the fee increase can be attributed to a 46% rise in the average fee per transaction, which grew from $0.5 in Q4 2023 to $0.7 in Q4 2024. However, the average fee per transaction decreased slightly QoQ by 4%, from $0.8 in Q3.
The spike in transaction fees earlier in the year, particularly during Q2 2024, was driven by the launch of The Third Kingdom, a strategy simulation game by Futureverse and Walker Labs.
In Q3 2024, the implementation of the Substrate v1.0.0 upgrade improved network efficiency by increasing transaction throughput and raising the block gas limit from 11 million to 15 million. These enhancements optimized transaction handling, reducing average fees QoQ in Q4 despite lower transaction volumes. The upgrades also positioned the network for better scalability and cost-effective operations, aligning with its long-term architectural goals.
Over the past year, The Root Network exhibited mixed user engagement and growth trends. Average active addresses decreased 31% QoQ, from 32 in Q3 2024 to 22 in Q4 2024, indicating a decline in short-term activity. However, active addresses remain up 38% YoY, growing from 16 in Q4 2023, reflecting steady long-term adoption driven by network upgrades and ecosystem expansions.
Similarly, average new addresses fell 25% QoQ, from an average of 1.5 new addresses in Q3 to 1.8 in Q4 2024, continuing a downward trend in onboarding new users. This represents a significant decline in new address creation, down 82% YoY from 10 new addresses in Q4 2023. The drop may reflect reduced outreach initiatives or market conditions impacting user acquisition, as Futureverse prioritizes building a robust infrastructure.
Developer Activity
Developer activity on the Root Network provides essential insights into its technical progress and ecosystem engagement. Quarterly commits measure the pace and volume of updates and new features, highlighting development momentum. Active developers indicate the size and engagement of the technical community contributing to the network, reflecting its capacity to attract and retain talent. Active repositories demonstrate the diversity of projects and tools being developed, illustrating the scope of innovation within the ecosystem.
Developer activity on The Root Network continued to decline in Q4 2024. Quarterly commits dropped 26% QoQ, from 377 in Q3 to 279 in Q4, representing a 72% YoY decline from 1,000 in Q4 2023. Similarly, the number of active developers decreased 34% QoQ, from 105 to 69, and fell 63% YoY from 184 in Q4 2023.
In contrast, the number of active repositories remained relatively stable, decreasing slightly by 9% QoQ from 11 to 10, though this represents a 33% YoY decline from 15. Despite fewer contributors, the consistent repository activity suggests that the focus has shifted toward maintaining and optimizing existing projects rather than initiating new ones.
These trends reflect a contraction in developer participation, potentially due to the completion of major milestones earlier in the year or shifting priorities.
Qualitative AnalysisPartnerships and DevelopmentsPromptopia Introduced as a Generative AI Tool: Futureverse’s Readyverse Studios, created in collaboration with Ready Player One author Ernest Cline and producer Dan Farah, focuses on creating connected digital experiences for the metaverse. In Q4 2024, the studio introduced Promptopia, an AI-powered platform showcased at Permissionless III.
Built on The Root Network, Promptopia enables users to create 3D environments, objects, and music using simple text prompts. It integrates technologies like Altered State for 3D modeling and Jen for music generation, simplifying creative processes and supporting user-generated content. By allowing players to dynamically shape virtual worlds without technical expertise, Promptopia aims to make creativity more accessible and interactive within the metaverse.
Launch of the Girin Wallet: Girin Labs, a Web3 venture studio supported by funding from the XRP Ledger Japan and Korea Fund and Ripple, has accelerated the development of the Girin Wallet and the Lotus Protocol, a DeFi platform for lending and liquid staking on The Root Network. In collaboration with Futureverse, Girin Labs launched the Girin Wallet, a user-friendly, non-custodial digital wallet designed for seamless integration with The Root Network and XRPL. Available on iOS and Android, the wallet simplifies digital asset management with features like social login and multichain compatibility. Future updates will introduce staking, lending, and user incentives, enhancing its functionality and driving the adoption of XRP and ROOT tokens.
Material World Protocol Launch in The Third Kingdom: The Material World Protocol was implemented with the launch of The Third Kingdom: Episode 1. This system supports minting, trading, and using in-game resources across multiple games, creating a shared economy on The Root Network. Players can now convert harvested materials into valuable assets beyond individual games. At the same time, developers can integrate these resources into their applications, reducing development costs and fostering a larger player base.
Paris Developer Training Workshop: Futureverse organized its first developer workshop in Paris, focusing on practical training for building applications on The Root Network. Led by Futureverse experts, the sessions covered blockchain fundamentals, interoperability, and tools like the Asset Register.
XRP Ledger Token Bridge Expansion: The Root Network has upgraded its cross-chain capabilities with an updated XRPL Token Bridge, enabling the bridging of ROOT, XRP, ASTO, SYLO, and ZRP tokens. This functionality is supported by Dexter, a decentralized exchange built on the Root Network, and FuturePass, a blockchain identity platform within the Futureverse ecosystem. These updates are designed to enhance liquidity and facilitate cross-chain interactions.
Pundi X and Futureverse Partnership: Futureverse has partnered with Pundi X, a blockchain platform focused on cryptocurrency transactions, to integrate blockchain, AI, and payment solutions into the open metaverse. The collaboration includes an AI DATA Omnichain Layer on The Root Network, designed to reward users for contributing AI data. Pundi X’s platforms, such as the f(x)Wallet and XPOS system, will connect with The Root Network to improve payment interoperability. Futureverse communities will also use Pundi X’s SocialFi platform, Purse+, to facilitate rewards and engagement.
Animoca Brands Collaboration: Futureverse and Animoca Brands formed a partnership to incorporate Futureverse’s technology into Animoca’s portfolio of over 400 Web3 products.
Ecosystem and Community ActivitiesExpansion of The Third Kingdom: The Third Kingdom, a story-driven metaverse project within the Futureverse ecosystem, expanded its gameplay with features such as resource minting, prestige mechanics, and collectible integration. The upcoming Episode 2, scheduled for 2025, will introduce Mycelium harvesting and material refinement, further enhancing the game’s interactive elements.
Generative Art and Tradeverse Updates: The Layers of Reality generative art series debuted with the Physical Matters collection on The Root Network. Tradeverse also added a peer-to-peer trading feature, enabling users to exchange digital assets directly and securely.
New Game Additions: The Root Network expanded its gaming portfolio in Q4 2024 by adding two new titles, CryptoGearz and MINEWARZ, further cementing its position as a hub for Web3 gaming. CryptoGearz is a mech strategy game that combines tactical gameplay with blockchain technology, offering players the ability to customize and compete with digital mechs in a decentralized environment. MINEWARZ is a mining tycoon simulation game where players build and manage operations to extract resources, leveraging blockchain features for in-game asset ownership and trading.
Zerpmon Launch: Zerpmon is a trading card game built on The Root Network, combining tokenized digital assets with competitive gameplay. Players can collect, trade, and use unique tokenized cards in strategic battles, making it a dynamic and engaging experience in the metaverse. Over 950 collectibles were minted within 24 hours of the launch, generating $100,000 in ROOT tokens.
Technological AdvancementsSubstrate v1.0.0 Upgrade: In Q3 2024, the Root Network upgraded from Substrate v0.9.27 to v1.0.0, improving speed, security, and efficiency. This update addresses previous limitations, such as difficulties in adopting new features, database migration challenges, and compatibility issues with newer runtime and client protocols.
Key enhancements include the integration of the Shanghai EVM framework, which expands compatibility and ecosystem benefits. Transaction throughput has been increased by adjusting the block weight, while the block gas limit was raised from 11 million to 15 million after benchmarking, allowing for more efficient transaction handling. The upgrade also establishes streamlined processes for future updates, reducing the complexity of subsequent transitions. These improvements position The Root Network to support advanced features and scale effectively, aligning with its long-term architectural vision.
Asset Register Improvements: The Asset Register, developed by Futureverse, introduced new features in Q4 2024 to improve asset interoperability and cross-chain accessibility. This system connects NFTs and SFTs across multiple blockchains, including EVM-compatible networks, addressing limitations such as high fees and slow verification. Its key features include cross-chain linking, a flexible schema system for managing asset metadata, and real-time event streaming for instant updates, enabling seamless integration and innovative applications.
Futureverse also plans to decentralize the Asset Register by integrating it into the Sylo Network. This transition aims to enhance transparency, security, and community-driven governance while maintaining compatibility. It provides developers with tools to innovate more efficiently and ensures that users’ digital assets remain scalable, interoperable, and secure, supporting the growth of the open metaverse.
ASM AI Protocol Enhancements: In Q3 2024, ASM introduced enhancements to its AI protocols to improve scalability and usability across its ecosystem. These updates addressed challenges like genome scaling and multichain compatibility, making the system more adaptable and user-friendly. Key advancements included the Murmur Matrix, which enables AI agents to exhibit spatial awareness and contextual memory; the Non-Fungible Intelligence (NFI) Protocol, designed to create intelligent NFTs and SFTs with embedded B.R.A.I.N.S.; the ASM Launchpad Protocol, providing tokenized licensing for developers to access ASM’s patented technologies; and ASM Void Protocol 2.0, a staking mechanism for ASTO holders to generate ASTO-Energy, claim rewards, and participate in ecosystem activities.
Building on these developments, Q4 2024 saw Altered State move closer to alpha testing, introducing a generative AI tool that allows creators to produce highly detailed 3D models using intuitive prompts. These developments build on ASM’s ecosystem improvements, advancing AI-driven creativity and functionality within the open metaverse.
Jen Music Platform Updates: The Jen platform, an AI-driven music creation tool within Futureverse’s ecosystem, transitioned to its beta phase after its alpha release in June 2024. The beta introduced 16 new features to enhance user experience and optimize its AI models. In November 2024, the platform launched StyleFilter™ in collaboration with Grammy-winning artist Imogen Heap, allowing users to apply distinct musical styles to their creations. These updates reflect Jen’s ongoing development and refinement of its tools.
Validator Updates on The Root Network: On December 15, The Root Network raised validator commission rates on Futureverse-operated nodes from 1% to 5% to encourage external validator participation and enhance decentralization. Participants are advised to review their nominations to maximize staking rewards, align with reliable validators, and contribute to a more decentralized ecosystem.
SDK and Network Enhancements: Futureverse announced updates to its authentication SDK, including a refreshed user interface, WAGMI 2.0 integration, expanded customization options, and automatic support for new OAuth features. Developers are advised to update to the latest SDK version to access these enhancements, with documentation available for guidance.
Notable highlights:
- Questmas Event: A 12-day program distributed ROOT tokens and exclusive collectibles, driving holiday engagement.
- Leadership Appointment: Isabel Quinteros, formerly of TikTok, joined Jen as Senior VP to develop monetization frameworks for sustainable AI-driven music creation within Futureverse.
- AI-Generated Transactions on XRPL: The Jen platform has facilitated over 334,000 AI-generated transactions on the XRPL using XLS-20 NFTs for copyright registration, with 4 million+ NFTs minted since its beta launch last month.
Futureverse achieved notable progress in Q4 2024, with strong market capitalization and ecosystem growth developments. ROOT’s market cap increased 131% QoQ to $50 million, while ASTO surged 174% QoQ to $27 million, reflecting growing interest in AI protocols. NFT sales remained stable at $1.1 million QoQ, with sales counts rising 21% QoQ to 4,700. Technological advancements included updates to the authentication SDK, improvements in cross-chain asset management through the Asset Register, and progress in the ASM ecosystem as Altered State moved closer to alpha testing. The ecosystem expanded with partnerships such as the Girin Wallet launch and the integration of the Material World Protocol in The Third Kingdom.