Cryptocurrencies had a great year in 2021. In this period, we have seen the market go from being classified as a billion-dollar economy into a trillion-dollar economy. Aside from that, cryptocurrencies are gaining visibility in the mainstream world with, for example, El Salvador's adoption of Bitcoin as the official digital currency. As a result, investors are looking for the "new Bitcoin" on the market, hoping to find a great alternative in so-called altcoins. Unfortunately, many traders value an altcoin exclusively…
Those who still are sceptical about the potentials of blockchain technology in the gaming industry will probably be convinced by the last outstanding business numbers. As a report by Blockchain Game Alliance (BGA) point out, only in Q3 2021 did NFT games managed to generate $2.3 billion in revenue.
This impressive number amounts to more than 20% of the whole NFT trading volume across all the industries in the report. One could easily simplify this number, saying that one every five NFT transactions is connected to the gaming world.
This article will provide more information on the industry, its current state, and potential future developments.
About the report
The report in question includes an exciting survey of essential members of hundreds of international companies active in the sector. This research has allowed the highlighting of enormous growth in crypto wallets connected to gaming activities (+ 2.453% compared to the beginning of 2021).
In terms of trading volume, Axie Infinity was the project that garnered the most interest from the crypto community. The September figure (approximately $ 2.5 billion in trading volume) represents a record in this industry.
An exciting industry
Given the recent introduction of NFT technology, this industry is very young. When we talk about executives in the NFT gaming world, we never find people who took over their roles more than three years ago.
This was the year in which NFT games also reached users generally not interested in the events of the blockchain universe. With successful projects and effective marketing campaigns, initiatives like Animoca Brands are raising millions of dollars every month.
Considering the $ 230 million sales in Q1 2021, there’s a good chance many people reading this article have already played NBA Top Shot. Recalling the previously mentioned case of Axie Infinity, we reiterate that 2021 was a significant year for this sector.
The report also highlights another interesting aspect. Currently, these millionaire companies rely, on average, on less than 50 employees. Considering the revenues mentioned above, the sector’s potential appears genuinely enormous.
What can we expect from the future?
Nearly 90% of the professionals in the survey believe that major traditional gaming companies will jump into this opportunity. Therefore, 2022 may be the year where we see billion-dollar revenue companies launch NFT projects.
The report implicitly highlights the need to bridge a gender gap in the sector. In fact, out of hundreds of people interviewed, less than 20% were women. Although this is a trend in traditional gaming, too, blockchain technology should lead to a fair balance with no discrimination of any sort.
Among the most recent trends, the play-to-earn (P2E) model has certainly managed to catch the players’ interest. The idea behind this scheme is that gamers can own in-game assets as NFTs and obtain rewards as functional tokens. In turn, these tokens can be used to acquire more NFTs.
Many exciting projects are coming to the NFT gaming world in 2022. Developers are competing in creating the best blockchain integration with online gaming, with exciting results for every user.
The Metaverse opportunity
When mixing the concept of blockchain technology and the gaming industry, one cannot ignore the apparent opportunity offered by the Metaverse. In the virtual reality of the Metaverse, users can interact with each other and with the environment, exactly just like classic PvP and PvE games.
Furthermore, since the Metaverse entirely relies on the value and functionalities of virtual assets, a digital property challenge arises. However, as has already been done in many fields, NFT technology can effectively provide a copyright system on virtual assets.
Starting from here, developers have a whole new world of possibilities. The gaming options are unlimited, from survival simulations to open-world adventures. Since most of these games incorporate non-playable characters (NPCs), items, and resources, NFTs are the perfect technology to use.
The digital real estate market in the Metaverse is booming, with users interested in acquiring virtual land even for excellent prices. But, of course, the pixeled land will have to be used in the future, and big companies are starting to jump in on the market.
The NFT games industry is growing strongly, with significant profit margins. Moreover, considering that many of the companies in the sector live with few employees, the revenues in the industry are even more impressive.
It will be fascinating to see the results of Q4 2021 compared to the same period of 2020. The existing and under development projects promise a continuation of market growth in 2022. Just recently, ‘Bitcoin’ Google searches touch yearly lows while ‘NFT’ searches peak, implying that more and more people are want to learn about this new trend.
It will remain to be seen whether the big players in the sector will decide to enter the NFT industry. Such a strategic move would bring a solid boost to this technology.