GameFi has become one of the most popular trends in the Blockchain Gaming Industry. It has the potential to disrupt the $175 billion worldwide video game market. Developers have taken their games to the next level, thanks to technological advancements in gaming development. GameFi rose as a rescuer for all gamers, with the ability to provide full-time performance to the general public.
GameFi Defined
To brief a little about GameFi, the combination of Defi, video gaming, and NFT technologies is known as GameFi. Players can earn in-game currency by playing Play-to-Earn (P2E) games.
There are also some popular P2E games which include Axie Infinity, Alien Worlds, and CryptoBlades. In-game assets can be purchased, held, or sold by players. The games run on a blockchain’s distributed ledger, which allows players to have verified ownership of virtual things even if the server is down.
How does it work?
The most successful model so far was launched in the game Axie Infinity, which had $564 million in on-blockchain transaction activity in the last 30 days. The economy of Axie is based on two tokens: AXS and Smooth Love Potion (SLP), the digital certificates of authenticity that represent game characters and digital real estate. Axies are little blob-like monsters that players often purchase for roughly $700. For winning battles and completing objectives, they get rewarded with SLP. Axies are also capable of reproducing and selling their offspring.
Is GameFi the real deal now?
According to DappRadar, the number of active blockchain games climbed to over 544 by the end of 2021, up from over 200 the year before. The top ten games processed moreover $841 million in transaction volume in the first week of January alone. It attracted more than 2 million unique active cryptocurrency wallets. Even though many of these games are simple, venture capitalists have invested in them.
The Future of GameFi
The truth is that GameFi is attracting large numbers of players and investors. Therefore, some blockchain experts anticipate that crypto games will drive cryptocurrency and other digital asset adoption. More importantly, the integration of NFTs into the video gaming industry is expected to disrupt the industry. Analysts have predicted GameFi to take advantage of other disruptive technologies such as virtual reality (VR), augmented reality (AR), and extended reality (XR) as the metaverse develops.
