How GameFi Helps Grow Crypto and NFTs
The GameFi sector has seen unprecedented growth over the past two years and is attracting investors.
Analysis
The crypto industry has grown tremendously over the past couple of years, and one of its biggest drivers is the GameFi industry.
GameFi — a portmanteau of games and finance — allows players to earn rewards while playing.
The market has been growing steadily and currently has a token market capitalization of around $9.2 billion. Notably, GameFi networks continued to thrive despite the crypto winter. Indeed, the industry is expected to reach a valuation of $74.2 billion by 2031.
How GameFi Networks WorkGameFi ecosystems are based on blockchain technology and use different in-game economic configurations to reward players. Rewards usually come in the form of non-fungible tokens (NFTs) that are redeemable on major marketplaces. Items typically come in the form of virtual terrain, costumes, and weapons and help diversify user experiences.
The difference in game strategies and economic setups is what makes each game unique.
One of the most popular GameFi economy setups is the play-to-earn (P2E) model. The template is designed to keep users engaged while allowing them to earn rewards.
It allows players to indulge in games without spending any money. However, progress can be slowed due to the lack of assets needed to compete. As such, players are sometimes required to purchase in-game items in order to access higher tiers where they can obtain greater rewards.
Popular blockchain gaming networks using the P2E GameFi model include Decentraland, The Sandbox, Axie Infinity, and Gala.
Why GameFi is popularThe GameFi world has attracted millions of us...
The GameFi sector has seen unprecedented growth over the past two years and is attracting investors.
Analysis
The crypto industry has grown tremendously over the past couple of years, and one of its biggest drivers is the GameFi industry.
GameFi — a portmanteau of games and finance — allows players to earn rewards while playing.
The market has been growing steadily and currently has a token market capitalization of around $9.2 billion. Notably, GameFi networks continued to thrive despite the crypto winter. Indeed, the industry is expected to reach a valuation of $74.2 billion by 2031.
How GameFi Networks WorkGameFi ecosystems are based on blockchain technology and use different in-game economic configurations to reward players. Rewards usually come in the form of non-fungible tokens (NFTs) that are redeemable on major marketplaces. Items typically come in the form of virtual terrain, costumes, and weapons and help diversify user experiences.
The difference in game strategies and economic setups is what makes each game unique.
One of the most popular GameFi economy setups is the play-to-earn (P2E) model. The template is designed to keep users engaged while allowing them to earn rewards.
It allows players to indulge in games without spending any money. However, progress can be slowed due to the lack of assets needed to compete. As such, players are sometimes required to purchase in-game items in order to access higher tiers where they can obtain greater rewards.
Popular blockchain gaming networks using the P2E GameFi model include Decentraland, The Sandbox, Axie Infinity, and Gala.
Why GameFi is popularThe GameFi world has attracted millions of us...
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