Blockchain gaming or gamefi is one of the most talked-about things in the crypto world, and it’s rising in popularity and use. GameFi means making money out of the gaming experience. It is a mix of the words “game” and “finance.” Of course, generating money playing online games is nothing new, but with the debut of GameFi, gamers have access to an abundance of new prospects thanks to blockchain technology and decentralized financing (DeFi).
GameFi’s origins date back to 2013, when bitcoin was not as widespread as it is now, but game developers had already begun to adopt it into their productions. For example, the game Bombermine. However, the GameFi sector grew slowly until 2021, when it made a breakthrough. The introduction of NFT and DeFi was the reason.
By 2020, GameFi projects started showing up on the crypto market in the form that we know them now — blockchain games in which users may earn tokens and in-game digital assets that can be sold on the resale market in addition to entertainment and collecting in-game objects. The GameFi sphere has a multi-million dollar fanbase thanks to this concept, which is growing steadily.
The summer of 2021 is known as the “summer of NFT” or gamification as multiple cryptocurrency blockchain games witnessed a significant spike in the value of their tokens. Consider the Axie Infinity fever, which was followed by an AXS token surge. This Ethereum-based gaming platform once generated above $ 800 million in revenue in 30 days, making it the frontrunner in this indication among all DeFi protocols.
The future of blockchain gaming
According to Naavik and BITKRAFT Ventures, the blockchain gaming market will increase at a 100% CAGR from $1.5 billion in 2021 to $50 billion in 2025. It is ten times the traditional gaming industry’s predicted CAGR i.e. 10%.
The distinctions between GameFi and traditional gaming could become further blurred depending on how traditional gaming companies implement blockchain technology. For example, ATRI (by video game developer Atari), Netmarble, and WEMIX have all launched or are planning to issue their crypto coins (by South Korean gaming company WeMade).
GameFi’s fair value and the number of users are expected to skyrocket. Overall, GameFi and blockchain gaming will have a bright future soon. Many new blockchain games will be released, and there is a largely untapped market of gamers who might potentially migrate from traditional games to blockchain games.