Blockchain games are being referred to as GameFi (Gaming and Finance), which is rapidly growing and garnering widespread awareness. Games and metaverse projects have raised over $2.5 billion, according to DappRadar. They have increased by over 2000% by 2021 and over 50% of all blockchain operations, even during the weak market. The figures show their quick development and expanding adoption.
Let’s take a look at the GAMEFI MARKET as it is today and where it is headed.
GAMEFI – A RAPIDLY-GROWING ECOSYSTEM
In GAMEFI MARKET Over $8 billion is already spent on blockchain gaming, and by 2025, it’s expected to reach over $50 billion (data from Crypto.com). So, it’s possible that gamefi will explode in the following years.
Blockchain gaming has gained widespread adoption and is bringing the definition of “crypto” closer to the community. At least 75% of gamefi investors started their crypto investments after participating in gamefi ecosystems, according to Chainplay’s State of Gamefi 2022 poll. Blockchain technology has made it possible for consumers to benefit from gaming, in particular:
1. Blockchain grants participants complete control over their possessions.
Blockchain play-to-earn (P2E) games allow players to fully control the assets they collect during a game and sell them afterwards. It demonstrates their possession of the proof of the genuineness of in-game objects. This feature is an improvement over traditional games, which permit users to use their in-game assets but prevent them from selling them on in-game or off-game markets for real money.
2. A new game-based economic model is introduced by GameFi.
The economic framework of GameFi is built on blockchain, cryptocurrencies, NFTs, and the play-to-earn paradigm. Depending on the game, NFTs or in-game assets can be purchased in a variety of methods and sold in a number of NFT marketplaces.
Additionally, the gaming sector offers a chance to develop virtual careers in a developing business. Let’s use the Philippines as an illustration; its citizens discovered a means to earn additional money by playing Axie Infinity, the most well-liked P2E game on the Ethereum blockchain.
3. Potential investment opportunities
GAMEFI MARKET and crypto are exhibiting their potential and drawing a lot of investors and venture capitalists thanks to their successful funding, solid growth, and active communities.
Also Read: What is Blockchain?
Web3 games and metaverse projects reportedly garnered close to $750 million in funding in August, a 135% increase over July, according to DappRadar. A16z’s renowned investor Andreessen Horowitz also contributed $4.6 million to a game guild for future game-related initiatives. Additionally, a key participant Sam Bankman-crypto Fried’s exchange FTX recently unveiled a gaming division as a crypto-as-a-service platform to boost widespread use of cryptocurrencies.
THE FUTURE OF GAMEFI
Gamefi is predicted to usher in a new age in the gaming business, with sales increasing 6.5 times over this year by 2025. It is gaining popularity and reaching a large number of people. It has the potential to attract a big number of traditional players, gamers, and even novices with no gaming experience.
However, gamefi is currently facing a number of obstacles as it expands into new communities:
- Many players and gamers have not heard of cryptocurrency or have heard of it but do not completely comprehend the fundamentals. Since the introduction of traditional gaming publishers into gamefi may be the key engine for GameFi growth in 2022, crypto education is the goal to stimulate crypto acquisition and should be prioritized.
- Over-monetization of games can become a confusing element that discourages many players from using gamefi applications, which slows the growth of blockchain and cryptocurrencies. Players should have enjoyable game modes, gripping narratives with intricate in-game economies in which NFTs are either incorporated into the game or swirl around it, but the discussion of money shouldn’t be forced upon them.
- Some P2E games demand upfront, sizable investments. Some games in the genre of science fiction should consider using free-to-play models rather than play-to-earn ones so that users can try the games out without spending any money before deciding whether or not to purchase in-game items.