Based on the latest report, the GameFi industry is set to dwarf into a multi-billion dollar industry in the next six years.
Predictions from the review involve the play-to-earn non-fungible token (NFT) gaming industry to rack up an anticipated income of $2.8 billion during the period of 2022 to 2028. According to the report, the compound yearly development rate over a similar six-year timespan is 20.4%.
Sky Mavis, Dapper Labs, Decentraland, Immutable, and The Sandbox are featured in the report in this field of play-to-earn game developments.
This study comes amid a furious crypto bear market, excluding ventures and enterprises of any substance.
The report states that the interest from venture capitalist investors to invest in new startups during the slump has been growing. For example, Animoca Brands, as of late, obtained three organizations in the GameFi arena.
These three organizations are included in their list: Grease Monkey Games, Darewise, Eden Games, Notre Game, and Be Media, to strengthen and expand gaming and Web3 capabilities.
Despite poor economic situations, critical expansion in clients of blockchain-based games is ever-present. Both WAX and Binance Smart Chain saw consistent community numbers with 2.94 million and 2.49 million clients separately.
This shows that blockchain-based games can hold out regardless of economic fluctuations.
As such, we’re given the opportunity to study the reason behind this unparalleled growth. This article will explore why GameFi will be a $2.8 billion industry by 2028.
Who wouldn’t like to earn cryptocurrency while having fun?
GameFi combines decentralized finance (DeFi) and non-fungible tokens (NFTs) with blockchain-based online games, describing the gamification of the working system creating profit from playing play-to-earn crypto games.
Most traditional online gaming operates on a “pay-to-win” model, allowing players to purchase digital upgrades to get a competitive advantage over other players. However, GameFi introduces a “play-to-earn” model, now transitioning from a play-to-earn to play-and-earn approach.
This concept involves giving players financial incentives to play and progress through games. Sometimes, it allows gamers to earn a full-time income doing so.
As we know it, Alien Worlds and similar GameFi projects, along with other play-to-earn games, are changing the traditional gaming industry. These play-to-earn crypto games are fundamentally blockchain-based monetization of the gaming experience.
A major distinguishing factor from traditional games is that players play to earn rewards rather than to win.
Predictably, the ability to financially reward players for their time and effort is behind the rapid growth in acceptance of these play-to-earn games, usually called GameFi.
Big Games in WAX and BSC
Worldwide Asset eXchange (WAX) is an EOS-compatible blockchain and protocol token designed to make e-commerce transactions quicker, more convenient, and more secure. WAX is the world’s most proven and eco-friendly blockchain for NFTs, video games and collectibles.
Meanwhile, Binance Smart Chain (BSC) is a smart contract platform emulating the functionality of Ethereum and other dApp platforms such as Tron and EOS.
Both blockchains offer a variety of great NFT games, propelling the GameFi industry forward.
Farmers World NFT Game
Farmers World is one of the top-rated NFT farming game on the WAX blockchain. With up to 150,000 active users, it is one of the fastest-growing games in the NFT ecosystem.
Seeing incredible growth over time, it steadily grows to around 2000 unique active wallets per day. These user portfolios have been responsible for 1.44 million transactions; every action in Farmers World is recorded in the blockchain. This on-chain game mechanic happens in a variety of games on the Wax blockchain, including R-Planet and the popular game Alien Worlds.
Farmers World NFT game is a play-to-earn farming game that is playable on the Wax Blockchain Platform. Players are required to own a WAX wallet and a tool to begin playing the game. Through the in-game currencies, tools can be bought from the market or crafted. Three in-game currencies are currently in the game: Food coin (FWF), wood coin (FWW), and gold coin (FWG).
To get different coins, you need to use different tools. You need to use axe, saw, and chainsaw to gain wood coins. For food coins, you must use fishing rods, fishing nets, and fishing boats. However, the only way to extract gold coins is to have a mining machine.
The amount of resource yield you gain depends on the level of the working tools that are used. During the extraction process, players lose some health. Food coins restore your health while also increasing a player’s strength stat, a main requirement for harvesting wood coins.
Each time a wood coin is collected, players’ strength stat and the tool’s durability will decrease. To repair the tools, you need gold coins. You can also buy new tools from the marketplace using gold coins.
Besides farming and mining, there are more gameplay elements like breeding animals which allows for more food, building your farm to expand and ensure safety, cultivating your crops to gain food, and lastly, fighting wild jungle animals to defend the farms and receive rewards.
Aside from the awesome game mechanics and the amazing growth spurt Farmers World NFT game has enjoyed over time, it’s precisely because of these blockchain games that GameFi is becoming more and more lucrative.
Blockchain Brawlers, a play-to-earn NFT game, has already seen over $430 million in volume.
Established by WAX Blockchain, the P2E game saw active players earn an average of over 5,000 BRWL per day. They also announced, via press release on April 11, 2022, the newest series of auction offerings of ‘legendary 1-of-1 NFT brawlers’. The pre-sale saw NFT auctions on WAX, and Binance raise just under $3 million, with some NFTs reaching $25,000-$35,000 apiece. This marks a four-figure percentile increase in value from the pre-launch sale prices in February of 2022.
Regarded as one of the most entertaining and exciting play-to-earn game in metaverse history, Blockchain Brawlers features a funny cast of NFT characters. The likes of The Iron Pole, Crocodile Dundalk, and Juggernaut (to name a few) assist gamers in brawling their way to NFT supremacy.
The game features 400 “Founder’s Edition” Legendary 1-of-1 brawlers, a limited-edition collection of Ric Flair NFTs, hard-hitting gear packs, limited edition swag and so much more. Powered by BRWL tokens, each Brawler plays an integral role in the Blockchain Brawlers play-to-earn game as players brawl, earn, and craft their way to fame and fortune.
This NFT game proves that a creatively crafted product can attract millions of people, thus bringing about a multi-billion-dollar industry to emerge.
The NFT game platform MOBOX on the BSC saw NFT sales skyrocket alongside the valuation of its native token MBOX.
With the game attracting more than $27 million in NFT trading volume, Mobox NFT Farmer is an undeniable winner. Its native token MBOX almost doubled in price. The launch of a number of important updates on the platform last March 2022 caused this surge in activity and valuation. For example, Mobox introduced the new tower defense mini-game Molar Defense.
Launched in April 2021, MOBOX is a community-led GameFi platform established on BSC that connects the DeFI, NFT, and blockchain gaming features to shape a free-to-play and play-to-earn ecosystem.
MOBOX is a prime example of how BSC-built NFT games are leading the charge in terms of growing the GameFi industry.
Origin of GameFi
With this significant growth, it may come as a surprise that GameFi has an origin story.
A confluence of factors dating back to 2017 sees the rise of GameFi, including the advent of NFT phenomenon CryptoKitties. With CryptoKitties amassing over 14,914 users a day at its peak, the digital collectibles economy proved a breakthrough success. CryptoPunks is a collection of 10,000 pixelated NFT characters established on Ethereum. It enjoyed similar success with CryptoKitties and exceeded $1 billion in sales and still growing.
However, the success of these NFTs highlighted the pros and cons of blockchain technology during the time. Extreme congestion transpired in games like CryptoKitties on the Ethereum network, which led to radical spikes in transaction fees and much snail-paced-than-normal transaction confirmation times.
An apparent gap in the market shows technical issues for more resilient, efficient, and sizable platforms to manage the increasing demand from online gamers and virtual asset investors.
By then, a number of new blockchains that could replace Ethereum have arisen. They promised faster transaction speeds, greater efficiency and scalability, and more affordable prices, including the likes of Solana, Polkadot, and Cardano.
The next essential factor that empowered the growth and development of GameFi was the increase of DeFi platforms over 2020.
It introduced a variety of blockchain-based financial platforms, operating totally using smart contracts. The infrastructure for decentralized exchanges where in-game cryptocurrencies could be launched, traded, lent and staked was provided.
In September 2020, Yearn.finance founder and DeFi developer Andre Conje tweeted about the monetary policies’ gamification in a decentralized environment, recognizing the many benefits DeFi and NFTs could provide to the online gaming industry.
Because of this, GameFi applications rapidly began to develop. For example, Axie Infinity was one of the first play-to-earn games to take off in a big way, surpassing $1 billion in revenue on Aug. 9, 2021.
The advent of GameFi is anchored on the early stages of cryptocurrencies. Only recently is it gaining mainstream media attention as well as consumer adoption, which was demonstrated by the enormous success Axie Infinity has accomplished.
Being the first to surpass $1 billion in token sales last August 2021, Axie Infinity has seen over a million daily active player base.
A new level where GameFi projects are drawing in millions of players around the world, including fan bases and institutional funding, is possible because of the rapidly evolving technology behind blockchain gaming. Crypto gaming may likely serve as a bridge to mass adoption, using blockchain technology as the anchor point.
At this point, GameFi projects will continue to gain popularity, not only with traditional gamers but also with casual gamers. A deeper understanding of crypto is needed for it to grow even more.
As those in the crypto space may probably know, GameFi is taking huge chunks of the $175 billion gaming market. Concepts of in-game currencies, limited digital items and tokenization, riped without real monetary values, are familiar for video gamers, and they have enjoyed consuming them so. P
lay-to-earn ideas are floating around the internet, and gamers are realizing the possibility of a full-fledged income stream from gaming. Therein lies the appeal of GameFi projects, consisting of all these elements that directly reward the players in terms of real financial value.
It is an exhilarating time to be in the GameFi space. Leading gaming industry players such as Ubisoft, Roblox Corporation and semiconductor makers have joined the blockchain game arena.
The further development of GameFi calls for an alliance to provide much needed infrastructure for game development, including the creation of forums and dialogue for developers and players to connect, collaborate, and exchange ideas to create common standards within the industry.
The growth of GameFi can be seen through the accumulated market capitalization of leading blockchain games. This market cap has gone off to $14 billion. Due to the already massive-yet-growing size of the gaming industry, the total addressable market provides a future of higher growth opportunities.
The massive success of Axie Infinity and CropBytes is something to behold. From this vantage point, the trajectory of GameFi seems to be going in a positive direction. You can anticipate better and newer innovations with several GameFi games in the making. Some of the games you have to look out for are as follows:
- The Sandbox
- Who: Worlds Apart
- Star Atlas
- Ember Sword
- Guild of Guardians
The launch of these games are highly anticipated and will provide even greater chances for gamified profit, enriching the gaming experience of gamers worldwide.
It is gaming platforms like MOBOX that give individuals the opportunity to build and develop their own NFTs and games with interoperability capabilities as well as creative control.
Using DeFi features such as staking and liquidity tools, the platform allows gamers to make income from their assets. They can then use this income to buy in-game upgrades or make keys that unlock new NFTs.
Over the years since its conception, GameFi has gained tremendous traction, with the collective market capitalization increasing over time. Many crypto industry leaders believe in the potential of the GameFi industry. For example, Tron founder Justin Sun stated he believes this new sector will be key to increasing cryptocurrency adoption.
In this light, GameFi is a force seen to improve existing online games. The play-to-earn structure essentially shifts the trajectory of the gaming industry in a significant way. This crypto adoption shows no signs of stopping, with GameFi and NFTs becoming rallying points for DeFi.
Growing public attention and interest is spreading within the GameFi space. This is a prospect worth looking out for because the GameFi market can only go forward, despite its ups and downs.
Whether or not you believe this, GameFi has shown time and again that slowing down is not an option, as the numbers prove over time. The results speak for themselves. That is why GameFi is set to dwarf into a multi-billion-dollar industry by 2028.