- GenZ investors and gamers are drawn to the GameFi ecosystem.
- It shines out as a starting point for many first-time investors as an outcome.
- 75% of respondents to a Chainplay study of 2428 GameFi investors said they entered the cryptocurrency industry only because of GameFi.
A certain type of investor is drawn to GameFi, the combination of gaming with decentralized finance (DeFi), who tend to select proposed ideas on their use application rather than their ability to generate revenue.
The GameFi ecosystem appeals to investors and gamers in Generation Z.
As a result, it acts as a jumping-off place for many new investors. In a ChainPlay survey with 2428 GameFi investors, 75% of respondents said that GameFi sparked their initial interest in cryptocurrencies.
89% of GameFi investors lost money due to Crypto Winter 2022, with 62% losing more than 50% of their initial investment. About half of the investors initially entered the GameFi market to generate money.
Investors, however, think that the weak in-game economy design was the primary cause of their losses. According to the poll, investors globally participated in GameFi for an average of 2.5 hours per day in 2022, a 43% decrease from 4.4 hours in the previous year.
The lack of funds for new GameFi projects is largely due to concerns about rug pulls and Ponzi schemes, as well as poor visuals. As a result, 44% of investors think that traditional gaming businesses’ participation could be crucial to GameFi’s development.
GameFi has long been recognized as generating income from video games. It is not surprising that 51% of respondents stated that joining GameFi was motivated mostly by financial gain.
At the same time, female investors’ natural curiosity rates as the main motivator for entering the market. Unbelievably, 43% of female investors claimed they joined GameFi out of curiosity.
GameFi could have certain flaws, but it also can make significant progress in the second half of 2022. It is safe to argue that the ecosystems least impacted by the Terra (LUNA) disaster were blockchain gaming and the metaverse.
Additionally, ongoing institutional investment was observed in both blockchain gaming and the metaverse, demonstrating that many leading corporations believe both industries have the potential for rapid future expansion.
The Top 4 Factors to Identify Good GameFi Project
According to 71% of investors, “Interesting Gameplay” will keep them interested in the sector. These investors desire that GameFi put fun before profit. Another 58% of investors who like better graphics concur with this viewpoint.
Additionally, 55% of investors think GameFi needs to create games with a stronger reputation. They want the sector to collaborate with renowned game development studios, particularly those engaged in PC and console gaming.
66% of investors in the final category want better in-game economic design. As was previously said, the architecture of the game’s economy was identified as the main element influencing GameFi investor profits over the previous six months.