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Recent crypto winter has made many prominent players in the crypto market witnessing heavy headwinds. Amidst such vulnerable circumstances, several sectors within the sectors held their position —did not give up at least if not moved upwards. Blockchain based these sectors include gaming and metaverse related projects.
Decentralized applications data aggregator, DappRadar reported that games and metaverse projects are among the resilient players in the industry. The whole sector managed to collectively raise about 1.3 billion USD within last quarter.
Growth of Crypto Gaming Beats AAA Game Companies
CEO of a multi-chain Ethereum based network Skale, Jack O’Holleran said the GameFi has a consistently evolving model that could make existing AAA game companies meager in front of them.
Despite having impressive growth potential, it’s not easy to get a sustainable GameFi model. Amidst the challenges, user experience tops the list given the complexity in gas fees and buying, owning and trading of non-fungible tokens.
O’Holleran noted regarding the same that every time when a user transacts which triggers a smart contract, charging for it might not act as a “disincentive to play”. He suggests that there is a need to do a lot of work towards usability in order to attract a mass market.
Enormously Growing Daily Active Users
Along with the challenges related to usability, almost half of the blockchain activities within the Web3 games accounts for up to 50 networks during the last quarter. The DappRadar data also highlighted that only during the September month, games smart contracts witnessed about 912K Unique Active Wallets daily.
An analyst said about different emerging economies having different mechanisms for distribution along with different token model’s development. These models are time-dependent as then only it will be clear which os the system will be suitable and reliable for long term in the open global market.
Play-to-earn (P2E) models are the most common gaming business models as players earn tokens and non-fungible tokens (NFTs). Other such models include play-to-own (P2O)—similes more with P2E but has more details in it—which gives the players a proof of ownership as rewards for peer-to-peer trading.
Future Outlook of Crypto Gaming
Absolute Reports analysis found that GameFi projects are likely to witness a significant growth in upcoming six years. P2E businesses in particular are expected to raise up to 2.8 billion USD within the same tenure, with more than 20% compound annual growth.
Meanwhile despite blockchain based gaming getting popularity and adoption, AAA games are also acting as indications for emerging studios. Indications related to games involving high-budget and high profile mainly large publishers produce and distribute.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
