The adoption of blockchain gaming has increased significantly worldwide. While “play-to-earn” cryptocurrency games have become popular for engaging users, are there any drawbacks to this model? Blockchain gaming has been present since the beginning of cryptocurrencies, but it has only recently become more prevalent.
The P2E model is a major factor in this growth, as it turns gaming into a source of income rather than just a recreational activity, which makes it appealing to a wider audience.
The P2E Model
The P2E model operates under the principle that gamers can accumulate cryptocurrency rewards for playing certain games. These rewards can be exchanged on cryptocurrency exchanges for other forms of cryptocurrency or fiat currency.
This model has gained significant popularity in countries where job opportunities or living costs are scarce, as it has emerged as a legitimate means of income. One of the primary benefits of the P2E model is its decentralized structure. In other words, no single entity controls the issuance or value of cryptocurrency rewards.
Rather, the market dynamics dictate cryptocurrency’s value, primarily driven by supply and demand. This approach has resulted in the establishment of a new type of economy, allowing gamers to earn a living without being restricted to a particular employer or location.
The P2E model has also opened up fresh opportunities for game developers. By integrating blockchain technology into their games, developers can create more immersive and captivating gaming experiences. They can also offer players a chance to earn rewards, increasing the game’s appeal and attracting new users.
Results From the Study
According to the Polaris Market Research Blockchain Gaming Report, the transaction volume of blockchain games reached $5.41 billion in 2022. It is expected to have a Compound Annual Growth Rate (CAGR) of 68.90% during its forecast period.
The increasing interest in cryptocurrencies and digital technologies has attracted long-term investors, traders, and global brands. The rise of Web3 technology has blurred the boundaries between the physical and virtual worlds, enabling people to make digital money through online gaming.
A recent study conducted by Cryptogambling.tv, a crypto gambling platform, analyzed the search volumes of popular games that allow users to earn cryptocurrency in the past 12 months using data from Google Keyword Planner. Here are results from the study:
Axie Infinity is one of the most well-known blockchain games that employs the play-to-earn model. The game involves players owning and battling creatures known as Axies, and they can earn rewards in the form of Small Love Potion (SLP), a type of cryptocurrency, for participating in the game. Players can then exchange their SLP for other cryptocurrencies or traditional currencies on various exchanges.
Other Top Games
SecondLive, a virtual metaverse, ranks second on the list with an average of 496,313 monthly searches. This game is compatible with Windows, Mac, and Android and enables users to create avatars and navigate an open virtual space to construct their preferred lifestyle. Users can use BNB, which can be traded for other fiat currencies, to purchase and sell items in the game’s online marketplace.
Stepn, a mobile game that rewards users for walking, jogging, or running, is in third place. This “move-to-earn” game promotes a healthy lifestyle while allowing users to earn cryptocurrency. The web3 app has an estimated average monthly search volume of 478,794 on Google over the last 12 months.
Investors have taken notice of the rapid expansion of the blockchain gaming market. As of 2021, the market capitalization of the industry was evaluated at approximately $4 billion. The P2E model is especially appealing to investors as it has the potential to establish a novel economy that is not reliant on conventional financial institutions.
