In the crypto environment, games have grown a lot. Learn more about GameFi Market
The crypto universe offers a series of opportunities ranging from the purchase of more traditional assets, such as Bitcoin or ether, to even playing games. In recent years, the GameFi segment has grown significantly.
Imagine being able to enjoy an online game while earning rewards you can use inside or outside the game environment. That’s exactly what GameFi offers, bringing together the main benefits of the DeFi environment with the playfulness of most different types of games.
What do you think about knowing a little more about it? Continue reading to check it out!
What Is GameFi?
GameFi is the union of the terms game and finance that represents the play-to-earn (P2E) games available on blockchains. Stimulated by NFTs and other tokens, players undertake a series of tasks and challenges within the game’s ecosystem.
We haven’t seen anything yet with video games and online games, have we? The big difference provided by the DeFi environment is the freedom to use the rewards not only in the game itself but also trading, for example, on exchanges.
How Do These Games Work?
Each game has its story, setting, objective, and characteristics that any traditional game will also have. There are different segments like sports games, adventure games and many other topics.
What all GameFi games have in common is the ability to monetize. And from the exchanges of these tokens, players can earn money with their virtual performance.
This, perhaps, is the main attraction of games on GameFi. Axie Infinity, one of the most popular games in this environment, offers an example. Aleksander Leonard Larsen revealed that over a million Axie players were unfamiliar with cryptocurrencies.
After all, GameFi is a way to promote education about the crypto market.
What Is The Current Scenario Of The GameFi Market?
Accounting for NFTs and its own crypto assets, only Axie Infinity has a market cap of more than 900 million dollars. At the end of 2020, its token (AXN) was worth US$ 0.18; in 2021, it peaked at US$ 160; today, it is worth just over US$ 12.00.
The success of games like Axie Infinity made other companies in the crypto universe invest in the development of GameFi games. FTX, for example, partnered with Solana Ventures to create a $100 million fund just for gaming investments.
One of the results of this investment is the Star Atlas game. It promises to revolutionize P2E gaming. As a result of the game’s attractiveness, it has already generated more than 41 million dollars in sales of tokens and NFTs.
Another type of game that has gained ground on GameFi is sports. Futster, a P2E football collectables company, is an example.
Futster’s differential is that players can earn rewards by acting as managers of their teams — similar to games like Football Manager — or by valuing NFTs cards that can be from real players.
What Are The Opportunities In This Market?
GameFi offers opportunities beyond the game itself. Yes, a person can earn tokens and rewards by completing tasks and achieving goals in games, but it is also possible to invest in IGO, i.e. the Initial Game Offering.
In a similar way to an IPO in the traditional financial market or an ICO in the crypto world, players can invest in tokens of upcoming games, like Star Atlas.
Therefore, investors can learn about a project and buy tokens that represent actions in a game. As the game appreciates in value and becomes more popular, the tendency is for the token to gain more market value, generating a financial return on the investment.
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