GameFi breaks new ground in finance by making it possible to play and create within virtual worlds to earn and invest money. This post will discuss the exciting trends in GameFi that are currently happening and you should look out for this 2022.
What is GameFi?
GameFi came from the combination of “gaming” and “finance.” Decentralized finance (DeFi) leads the back end, while a game with collectible NFTs serves as the user experience. Here, you are immersed in a virtual world where you can play games to earn money and invest in an ecosystem.
The first crypto games like CryptoKitties have shown the use of NFTs in dApps. However, GameFi takes a slightly different approach. The newer, more complex games allow you to do more than collect, buy, and trade items. These games give you a chance to:
- Engage in activities across the DeFi platform, including yield farming, lending and borrowing, and token minting
- Impact the project’s development by contributing to creating the virtual world or by buying enough tokens to earn governance rights
- Generate passive income by staking cryptocurrencies
It seems like collecting items from virtual worlds couldn’t be compatible with complex financial operations. Surprisingly, that is precisely the power of GameFi. GameFi offers financial features that are accessible through gamification.
GameFi has become a significant part of the cryptocurrency market. It is not only a fad in the market, so there’s no doubt that it will expand even further in the years to come.
So that you will have a better understanding about the current Gamefi trends, you probably like to find out everything you need to know about GameFi; Its features and how it works?
Trends in GameFi this 2022
What will be the dominant trends in the development of GameFi projects in 2022, and what steps should players take to maximize their P2E profits? Take a look at some of the most significant trends and factors that will likely cause GameFi to undergo considerable change in the following months.
Traditional games start to enter and explore GameFi
GameFi enhances gameplay by adding complexity and challenge for the players. This is in contrast to the current situation, in which the majority of players click on advertisements to generate income or additional in-game assets.
You probably know some major companies that dominate the traditional video game industry, such as Gameloft, Electronic Arts, and others. These companies have also recently begun to focus their attention on the lucrative GameFi market. It would be fantastic if blockchain technology supported the playing of their games.
Some of the currently available GameFi projects still have some flaws. These are the areas that GameFi developers will need to work on improving starting this year.
GameFi continues to gain financial importance to gamers
GameFi promotes the ideal balance of playing games to have fun and be creative while still making financially successful decisions.
The biggest P2E game, Axie Infinity, now has more than $1.3 billion in total market capitalization. Since the price of AXS has increased, top players now have the potential to earn hundreds of dollars every day. They may even have more significant profits by keeping their tokens as their value increases and selling them later.
Aside from the possibility of making a profit, people continue to participate in GameFi since it is enjoyable and has a sense of community. Moreover, you can invest in GameFi projects and actively affect its direction through governance tokens and content-generating efforts.
Traditional video game players switch to blockchain-gaming
Although traditional video games often encourage players to buy in-game items, the value of these assets is rarely allowed to be actively traded for real-world currency.
On the other hand, the valuable in-game assets within P2E games and the whole GameFi space are recorded on the blockchain. This means that the assets can be exchanged for cryptocurrency and later on be converted into fiat. As a result, users can benefit from the time and effort they commit while playing the game.
GameFi will continue to be a profitable ground for making money in the crypto market for gamers. Many games in the market do not require a huge starting capital to play. Thus, such games will be highly suited to many players.
More interactive and complex games are being developed
More interactive and complex video games will be developed due to GameFi’s success in attracting users. This would attract a more significant number of financial backers and investors to the industry.
For instance, players can now step into a simulated zombie apocalypse if they choose to play The Walking Dead, another huge game that has negotiated a plot in The Sandbox.
There is no doubt that it will assist in adding to an even richer arena, driving participation among people who may not have previously considered participating with GameFi.
GameFi continues to receive a significant amount of investments
According to Drake Star Partners, over $3.6 billion worth of investments were put into crypto gaming startups last year.
The cryptocurrency exchange FTX completed an investment round in the blockchain industry and raised 400 million dollars. FTX, which has placed a significant emphasis on gaming and sports, has formed a $2 billion fund to invest in GameFi startups.
Keeping up with the current trend, venture capital firms BITKRAFT and Galaxy interactive each announced the creation of investment funds aimed at the game streaming industry totaling over $400 million. These significant investments bring attention to the common expectation that the industry will experience spectacular expansion in the years to come.
Increased usage of NFTs in the Metaverse
The NFT market has the potential to become GameFi’s primary source of revenue. In-game purchases and the one-of-a-kind digital ownership rights given by NFTs form a relationship between these booming markets, which will almost certainly lead to further expansion in the near future.
Moreover, the use of virtual reality and augmented reality devices in metaverse games will help create immersive 3D settings where you may buy, sell, and earn digital assets like crypto tokens and NFTs.
The GameFi industry is undergoing rapid changes. Based on the amount of money invested in the field and the increasing number of users this year, 2022 seems promising. With the P2E features that GameFi has created, blockchain games will be able to grow their revenues further.
For the latest and upcoming games, GameFi is a way to establish deeper contacts with the gamers and earn money. However, game developers need to build and maintain solid tokenomics. This will ensure that users have good ways to engage with the game and profit from it, which will help the project become successful.
Do you want to become a GameFi gamer or investor?
GameFi is a significant area in the crypto industry where investors and players can work together. Help build GameFi and the metaverse by applying as a P2E gamer or becoming a GameFi crypto token investor!
Do you wish to earn as a GameFi gamer or investor? Here are the Top 5 GameFi Crypto Tokens this 2022 to help you decide.
Enter as a gamer
Join Railings University as a gamer! RU is the first guild under Play It Forward DAO that can serve as your portal to the vast metaverse brimming with GameFi projects where you can play and earn, as well as move to earn.