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- If one is familiar with the cryptocurrency sector and keeps up with what’s going on in the ecosystem on a daily basis, one will remember the euphoria around Bitcoin’s (BTC) surge above $63,000 in mid-April
- The sector is currently worth approximately $170 billion, but it is anticipated to grow to $268 billion in the next five years
- In-game resources like gaming tools, weapons, or cryptocurrency, as well as other in-game assets that may be tokenized on the blockchain and sold as NFTs, are among these assets
If one is familiar with the cryptocurrency sector and keeps up with what’s going on in the ecosystem on a daily basis, one will remember the euphoria around Bitcoin’s (BTC) surge above $63,000 in mid-April. The optimistic atmosphere in which crypto fans and stakeholders are now is causing this enthusiasm. And the game industry is to blame for this upbeat mood. Many people believe it’s decentralized finance (DeFi) season, and I can’t dispute that since the facts are indisputable. DeFi-based non fungible token (NFT) games are soaring to new heights, with a growing number of individuals embracing and playing them. This begs the question: what precisely is pushing gamers and crypto fans to flock in the thousands and spend hours every day playing these games?
The solution is actually rather easy. It’s because these folks not only enjoy themselves while playing, but they also receive prizes. Furthermore, these prizes aren’t simply for in-game use; they may be traded for fiat money and used in real life. The video game industry is now through a period of rapid expansion. The sector is currently worth approximately $170 billion, but it is anticipated to grow to $268 billion in the next five years.
With the play-to-earn paradigm of gaming, he believes game creators have discovered a sweet spot. First and foremost, what is this all about? Play-to-earn simply means that gamers and gaming fans get possession and ownership of in-game assets, as well as the ability to enhance the value of these assets by actively playing the game. By engaging in the in-game economy, gamers in this business model add value to the game creators and other players. They are awarded in-game assets as a reward for their involvement.
In-game resources like gaming tools, weapons, or cryptocurrency, as well as other in-game assets that may be tokenized on the blockchain and sold as NFTs, are among these assets. This is why the play-to-earn business model has worked so well with blockchain games. In July, the total revenue of the play-to-earn game Axie Infinity approached $120 million.
The remainder of Token Terminal’s top 10 applications tallied about $41 million at the time of writing, while Axie Infinity’s hits exceeded $215 million. Players acquire the native token Small Love Potions (SLP) when they play the Axie Infinity game, and these tokens are required by the players in order to birth more Axies, which are charged by Axie. Buying and selling Axies on Axie is also subject to a 4.25 percent fee. If players want to cash out their SLP tokens, they can sell them to other players on an open marketplace.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
