It’s no longer a secret (spoiler: we have talked about this several times) that blockchain technologies are rising in emerging markets. All the talk about NFT and GameFi proliferating in the blockchain technology market over the past few years got us thinking – what is it? What is this technology? What can we do with it? And the answers come along the way.
The pandemic years gave us a lot of time to think about what we were doing in the place we could not leave. So we discovered NFT more deeply, and we rediscovered the game industry.
The data in this graph shows us a rapid growth of the gaming market in the last two years. People discovered new ways to spend their time at home because of the pandemic, and the gaming industry went far beyond traditional video game trends. Adding characters like Keanu Reeves or Travis Scott’s in-game concert is way too cool for an ordinary video game. So it’s not what we expect to see in a few years.
Blockchain technology is helping to connect the new era of digital entertainment and also revenue. After the first year of the pandemic, we see more and more people leaving the unemployment office behind and becoming full-time gamers who can make money from it.
There are different types of “play and pay” systems. An NFT based Play2Earn (you have to buy a character before you start playing and potentially earning money) and Free2Play offer the possibility of receiving an in-game payment if the player achieves the game’s goals.
NFT and GameFi
The core idea of NFT is to invest in pieces and become the owner of a unique token. This idea carries over to GameFi and allows players to own assets within the game. It also opens up an investment opportunity for players, as pieces or other items can be sold.
The GameFi industry correlates with the DeFi concept and may be familiar to those who invest through decentralised exchanges. For example, liquidity mining, staking, and farming are the core concepts that allow a player to make profits.
Most of these games are based on the Ethereum blockchain and are somewhat costly. As the demand for such digital adventures is rapidly increasing, developers have been looking for new ways to lower the price and make the games accessible to more people. Most post-2021 games have already been developed on the Binance smart chain. It’s nice to mention that there are specialised blockchain platforms like Flow that allow the gaming industry to be founded and work with NFT.
This is definitely an incentive for game producers and gamers to develop the entire industry.
Rapidly increasing GameFi market
The overall market capitalization of GameFi at the moment is $26 681 512 422.99. All the sales of collectibles inside the game is generated of $10.6 billion of all NFT projects.
In August 2021, the most famous game Axie Infinity had a total token sale for almost $1 billion. Interesting to say that this game is hosting more than 1 million active daily players.
Right now, there are more than 2.7 billion users playing games to make money and invest. So we understand that this industry is worth the hype. The market is growing, the demand is there and we look forward to more developers and investors to expand the opportunities that the gaming industry opens up to people.
