Published on 01/29/2024 14:40:36
In the last few years, the NFT market has been booming. In 2021 alone, the value of the NFT marketplace hit a total of $15.70 billion. And it's predicted to grow even more by a CAGR of 50+% by 2030.
Such instant adoption and development of non-fungible tokens couldn't possibly pass near the online gaming industry without being noticed. According to Mordor Intelligence, it is estimated that the NFT gaming market will have an approximate revenue of $471.90 billion in 2024. And already in 2029, it will reach up to $942.58 billion. Pretty impressive, right?
But how exactly does NFT impact and change the gaming industry? Or do we already have examples of successful NFT games? In this article, we are going to unpack all these questions. So, get comfortable and let's start.
While the defining characteristic of the Web3 concept is the decentralization that gives people more power over their data, games with NFT bring their users more control over the pricing of items.
For example, if we take a look at games like FIFA and Fortnite, we can see that when playing, you can invest in skins and buy various items. However, the developer is still in charge at the end of the day. Meanwhile, in NFT games, the sale and resale of in-game items are in total control of players.
But this is not the only feature coming with the NFT gaming market. The key tendencies you can already see in this sector cover play-to-earn games, DeFi apps, and NFT casinos.
Below, let's see what makes each of these concepts unique and revolutionary.
In simple words, GameFi is a market sector within the DeFi ecosystem that combines game theory with blockchain technology.
If you have been into gaming for a long time, you might’ve heard about Axie Infinity, a turn-based card game developed on the Ethereum network. After its release in 2017, Axie Infinity reached a million active players daily and surpassed the limit of $1 billion in token sales.
This game is one of the perfect examples coming from the GameFi concept, the core focus of which is based on the play-to-earn blockchain games. Also, GameFi utilizes cryptos, NFTs, and blockchain algorithms to deliver a fully functional virtual gaming environment.
The prizes and rewards in GameFi can be either in-game assets and items such as avatars, weapons, virtual land, etc. or crypto and in-game tokens.
One thing to note is that each blockchain-based game comes with a different game model and economy. Generally, gamers can get NFT and crypto rewards by completing various daily quests, battling other players, moving up the game levels, or winning battles. In addition, in the GameFi industry, unlike traditional video games, players can transfer the crypto assets out of the game's virtual space and exchange them on NFT marketplaces or cryptocurrency exchange platforms.
According to Statista, the total revenue from worldwide gambling is projected to reach $107.30 billion by the end of 2024. Some of the top countries with the greatest portion of overall players cover the USA, Canada, Australia, and Germany. Although players can already conveniently deposit and withdraw at online casino sites with PayID, bank cards and e-wallets, the industry is gradually exploring NFTs.
Metasino is the best example we can look at. It is the first decentralized gambling platform built on the blockchain. At this casino, players can enjoy table games, slots, and live dealer games using $CASINO - Metasino’s native token.
The core difference from traditional casinos is that here, NFT is used as an ownership token for offered games that can generate revenue.
The next change that NFT brings to the gaming industry is the introduction of DeFi apps. Most NFT game projects offer Decentralized Finance solutions and services, covering yield farming, mining, liquidity, and staking. In simple words, players can stake their in-game tokens to recover rewards, unlock unique items, or open new game levels.
NFT games let users take part in decision-making by giving them voting power. Meanwhile, traditional gaming companies come with centralized control over video game updates.
Now it's time to look at some of the top NFT games with the highest player count, according to Statista.
|Player Count (during November 2022)
|WAX, BNB Chain
|Arc8 by GAMEE