Key Takeaways:
- The crypto market has seen 136 investments in the last month, totaling more than 4 billion dollars. Among them, there were approximately 41 investments related to GameFi, totaling close to 1.3 billion dollars.
- A component of decentralized finance (DeFi) that has lately gained importance is GameFi, primarily interlaced with non-fungible tokens (NFTs). The name “GameFi” was coined by Andrew Cronje, the creator of Yearn. Finance, in a tweet in September 2020, and has since grown into its ecosystem.
Due to the influence of decentralized technology, various sectors have been raised and developed since 2016. The global gaming business is no exception, as blockchain technology changes the way people play games, perform microtransactions, and acquire in-game assets. Thanks to the integration of NFTs and DeFi, players may now leverage the “play-to-earn” paradigm to transform gameplay and in-game assets into real money by completing tasks and objectives.
According to Dove Metrics, there have been approximately 136 investments in the crypto market in the last month, totaling more than 4 billion dollars; among them, there were about 41 investments connected to GameFi, totaling close to 1.3 billion dollars.
The GameFi sector is predicted to significantly impact the worldwide gaming industry, which is expected to increase from $173 billion in 2020 to $314 billion by 2026. Although GameFi projects are still in their early phases, early adopters receive substantial rewards, unlike anything you could earn in popular gaming in previous years.
The popularity of several ‘play-to-earn’ games in 2021 cleared the door for NFTs and other real-world prizes to be included in games. As a result, it is reasonable to expect considerable breakthroughs in in-game models and mechanics in the coming year. Some well-positioned GameFi projects are already set to thrive in the market,
- Star Atlas is a ‘pay-to-win game metaverse set in the year 2620, with numerous factions and groups vying for territorial, political, and financial dominance.
- Squidanomics is one of the most cutting-edge “play-to-earn” gaming ecosystems, combining fun and real-world earning possibilities to propel the GameFi industry ahead. The fan-favorite Netflix series ‘Squid Game’ inspired the token and game design for this project.
- Axie Infinity is a PvP (player vs. player) and PvE (player vs. environment) combat game in which players may acquire, breed, and trade native in-game animals known as Axies. Axie Infinity, which was launched in March of 2018, now has over 250,000 daily active players. Axies are non-fungible tokens that may be traded for real-world incentives.
The year 2021 was pivotal for the GameFi ecosystems, with several new GameFi projects published in the third and fourth quarters displaying considerable advancements in in-game processes and models. For the gaming industry to continue expanding and evolving, game mechanics and the overall gaming experience will improve.
