GameFi is a blockchain-based gaming sector that supports initiatives based on DeFi. It brings blockchain players, game development companies, and retailers together. GameFi can be understood as Game + DeFi.
It enables you to search for the best games out there. Users can participate in any game listed on the platform, and developers can publish their games. New games are coming to the GameFi market as GameFi and NFT Launchpad are in vogue. Developers have free space to translate their fantasies into codes to create an innovative and colorful universe.
The main purpose of GameFi is to incorporate financial elements into the game. The play-to-earn portion of GameFi is the most attractive one that allows players to make money while playing. An asset captures the return on play-to-ear. Players can collect rare items from NFT and later use them for staking, farming or selling. It also enables real users to look into the metaverse. GameFi enables the creation of IGOs (Initial Game Offerings) for multiple projects through its gaming launchpad. GameFi is designed to solve difficulties in game studios and focuses on introducing games with high playability.
Current GameFi market situation
GameFi has combined NFTs and DeFi, which brings a potential change in the game industry with rapidly increasing users, volumes and token prices. The GameFi market is thriving in the second half of 2021, with its daily active wallets growing 700% from March to July. More than 2.7 billion players worldwide are already familiar with the concept of scarce digital items, tokenization and in-game currencies. Crypto games are considered to be one of the most profitable blockchain products. These games are one of the best ways to get into the mainstream world.
NFTs and GameFi markets are seeing a steady increase in trading volume and the number of users. OpenSea is the leading peer-to-peer NFT marketplace with more than $ 6.5 billion in trading volume as of September 20, 2021. It offers NFTs of everything such as in-game items, collectibles, music, artwork, and so on.
There are several large GameFi projects with excellent statistics. Axie Infinity, for example, had sales of $ 220 million in July 2021, up 600% in one month. It was higher than Ethereum and Bitcoin and the tallest of any GameFi project, proving that blockchain games have tremendous potential. According to Dappradar, the total number of active users of Axie Infinity has grown exponentially, with more than a million daily active users in August 2021 and more than 1.4 million unique transactions in 30 days.
Similarly, another project was tracking CryptoBlades transactions and it turned out to be $ 9.23 million in 7 days on September 17, 2021. According to CoinDesk, the daily transactions on CryptoBlades were more than the daily Ethereum blockchain transactions.
GameFi and NFTs markets are viewed as the future of the gaming sector as more and more players join the ecosystems. Tron Founder Justin Sun says, “GameFi will be the next big thing that makes DeFi, NFT, and the larger crypto space easy to understand and engage with.”
How do normal users participate in and benefit from GameFi?
Axie infinity’s massive rise is due to Yield Guild Games (YGG), which allows gamers to play and earn on-chain games with no experience of on-chain games. YGG gathered a large number of players and introduced the concept of the play-to-earn model when the unemployment rate in the Philippines rose significantly due to COVID-19. Axie Infinity implemented the concept of play to earn and offers services such as training, recruitment, rental, etc. Now some of the players are earning more than the average local salary. It has become a tool for some Filipinos to support families. 60% of daily active Axie Infinity users come from.