Cypher Capital Bets on the AI-Powered Metaverse: How SecondLive Is Reimagining Web3 in 2025

From Virtual Hype to Real-World Economics

The metaverse is no longer the speculative playground it was in 2021. In 2025, it’s evolving into a Web3 economic layer, blending AI, DeFi, and immersive social ecosystems — and Cypher Capital is positioning itself right in the middle of it.

The Dubai-based venture firm’s renewed backing of SecondLive, an AI-powered virtual ecosystem, highlights how metaverse platforms are shifting from entertainment to infrastructure — becoming dynamic hubs for creator economies, virtual assets, and decentralized digital identities.

The Funding That Started It All

In late 2024, Cypher Capital participated in a $12 million funding round for SecondLive, alongside investors like Crypto.com Capital, Metafast, and TASIU Ventures.

 At the time, the investment looked like another bet on the metaverse narrative. But fast-forward to 2025, and SecondLive’s evolution is rewriting that perception.

Now operating across BNB Chain, Solana, and Ethereum, SecondLive has matured from a digital social hub into a Web3-native economy that enables:

• AI-generated avatars and virtual spaces

• Tokenized digital assets and NFTs with real yield backing

• Seamless integration with DeFi protocols for creator payouts

The platform now supports over 2.1 million active wallets and 1.8 million user-generated assets, reflecting a clear demand for AI-driven metaverse creation.

AI + DeFi = The Metaverse Flywheel

SecondLive’s latest updates position it at the intersection of two unstoppable 2025 trends:

• AI-generated virtual worlds, and

• DeFi-powered economies.

By merging these forces, the platform lets creators monetize engagement, trade AI-generated digital goods, and stake assets in its integrated DeFi modules.

 This AI-DeFi convergence aligns perfectly with Cypher Capital’s investment thesis — backing projects that deliver long-term Web3 financial utility, not just hype cycles.

“Metaverse 1.0 was social. Metaverse 2.0 is economic,” said a Cypher Capital representative.

 “With SecondLive, creators don’t just build — they bank on what they build.”

Why Investors Are Circling Back to the Metaverse

While NFT and metaverse projects cooled off after 2022, AI innovation has reignited institutional interest in the space.

 In Q3 2025 alone, over $1.7 billion in venture funding went into “AI x Web3” projects — up 220% year-over-year.

Platforms like SecondLive, Yuga Labs’ Otherside, and Animoca Brands’ Mocaverse are now integrating:

• AI-driven content creation

• Tokenized in-world economies

• On-chain governance models for creators

This means the metaverse is evolving from a speculative bubble to a sustainable digital labor economy, and Cypher Capital’s portfolio strategy reflects that shift.

This aligns with the broader institutional trend toward tokenized digital economies — as seen in the UAE’s institutional crypto shift



SecondLive’s 2025 Vision: Building the AI Metaverse Stack

The next phase of SecondLive’s roadmap focuses on enterprise-scale metaverse infrastructure — a key reason why Cypher Capital doubled down on its backing.

Upcoming developments include:

• AI NPC creation tools powered by large language models (LLMs)

• Cross-chain identity systems allowing avatars to move between ecosystems

• DeFi integrations for in-world lending, staking, and royalties

By combining AI creativity with decentralized finance, SecondLive is turning into what analysts call “the Shopify of the Metaverse” — where anyone can launch an economic experience in a few clicks.

Market Outlook: The Web3 Metaverse Revival

The 2025 data supports the optimism:

• Global metaverse market cap projected to hit $940 billion by 2028

• AI x Web3 funding up 3.5x YoY

• Institutional adoption rising via regional hubs like Dubai, Singapore, and Hong Kong

SecondLive’s traction within this landscape cements Cypher Capital’s role as a first-mover in the new metaverse finance stack.

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