Play-to-earn games, or P2E, have recently been on the rise and have had a big impact on the cryptocurrency gaming market. As a result of which various leading P2E game development company have emerged in the market. NonFungible reports that in July 2021, the NFT market’s revenues reached a record $2.5 billion. The NFT market cap peaked at over $14 billion by the end of September 2021, which was a significant increase from the $13.7 million in the first half of 2020.
Additionally, from May 2021 onward, the quantity of wallets linked to games increased. The indicator for tracking cryptocurrency wallets linked to blockchain games, the number of unique active wallets (UAW), specifically increased to over 750,000. What then are the causes of these remarkable figures? The need for play-to-earn games is one of them.
You might be asking how the play-to-earn cryptocurrency gaming business differs from conventional gaming, though. This essay will address that query and examine some formidable investors boarding the crypto gaming spaceship.
Crypto gaming gains traction
The pinnacle of disruptive technology is the blockchain. On the blockchain, people can safely transact with one another without the involvement of a bank, credit card company, or other third party. Any industry, including the gaming industry, could be transformed by technology.
Crypto gaming is luring game producers and their players to switch from the outdated, centralized Web2 model to the new and enhanced, decentralized Web3 model thanks to such advancements on the blockchain. Players transition from being inactive consumers to being active owners of the games they play in Web3.
The ideal Web3 development platform, Suffescom Solutions, makes it far easier to create NFT games. Therefore, if you’re prepared to start a career as a blockchain engineer, enroll in Suffescom Solutions Academy and get going right away!
Play-to-earn, or P2E, games are blockchain-based games that allow players to earn money for their gaming time. Previously, only professional gamers received payment; but, with the growth of the P2E movement, anyone can now receive payment for playing games.
What Ensures the Success of P2E?
Among the factors contributing to P2E’s success are:
- The development of financial systems in cryptocurrency gaming.
- The desire of users to be compensated to play.
- Scaling techniques for layer 2.
The adoption of layer-2 solutions stands out among the three elements that contributed to P2E’s popularity. Early layer-2 adopters in the cryptocurrency gaming industry avoided their users the prohibitive transaction fees that afflicted other Ethereum users.
Play-to-earn models most notably provide players a cut of the money. There are two ways to make money:
In-game money is one way to get compensated. Native tokens work well for purchasing in-game NFTs because the majority of cryptocurrency gaming platforms feature a native coin. Governance, staking, and exchanging the tokens for cash on a centralized market are examples of additional use cases.
By exchanging successful NFTs on specialized platforms like Rarible or OpenSea, blockchain gamers can also profit.
Coin-based gaming and in-game goods
“In-game items” are one of the factors contributing to the popularity of crypto gaming. According to DappRadar, they accounted for $2.3 billion in trade volume in Q3 2021, or 22% of the entire amount.
A token that stands in for a digital asset is known as an NFT. Additionally, the wallet holding the NFT acts as the owner and has the ability to transfer it to another wallet. The blockchain does more than just track ownership. Additionally, it is immutable and decentralised. Therefore, no outsider can intervene and forcibly take the NFT holder’s ownership rights.
Traditional vs. P2E Crypto Gaming
NFTs can feature things like trinkets and in-game stuff, which is what sets cryptocurrency gaming apart from conventional games. In-game virtual terrain can also be represented by NFTs.
Players can buy in-game stuff in traditional gaming as well. But do they really own them? Not quite. The license to the digital copy kept on a central server is what the players own. The in-game item and ownership documentation vanish if the business fails, the server breaks down, or both.
On the other hand, NFTs that represent in-game assets remain on the blockchain forever. To lose an NFT, the entire blockchain network would need to crash. Additionally, players have total authority over the content they create in-game.
When the time comes to sell them, this outcome is fortunate. On a number of NFT exchanges, owners can transfer their assets. Additionally, exchanges are not restricted to the game’s original marketplace.
Early adopters can anticipate virtual economies being powered by gaming collectibles. More creative and unique assets are desired by users. As a result, the ownership element of NFT permits transferability, turning in-game items into tradable investments. The entire idea upsets the established gaming system.
Axie Infinity and Play-to-Earn
Play to Earn advocates think it has a good impact on society. This is due to the fact that players of P2E cryptocurrency games benefit from a democratized money stream. The P2E movement is best exemplified by Axie Infinity. Axie was created by Sky Mavis, a Vietnamese company, and it was Axie that started the P2E revolution.
Southeast Asia has long been a hub for gaming, and Axie Infinity is one of the most well-liked play-to-earn initiatives in Vietnam. For only three years in the industry, their daily active users reached an astounding total of one million in August. The main characters of the game are “Axies,” NFTs that players can buy or trade.
Blockchain Games That Pay You to Play
The highly anticipated CryptoPunks collection is right behind Axie. Since its establishment, it has brought in more than $2 billion.
On Hive’s blockchain, there is a P2E trading card game called Splinterlands. In PvP combat, players compete by strategically using their NFT cards. By completing quests, players may also gain “Dark Energy Crystals,” an in-game currency.
Splinterlands increased to 245,000 daily UAW in September. When compared to June’s totals, that is an enormous 3,260 percent gain. The market capitalization of the game reached over $200 million thanks to the growth spurt’s over 58 million transactions.
In 2021, the player bases of P2E crypto-gaming startups Alien Worlds and Upland have also increased. Players can own virtual areas in Upland that resemble actual cities like New York and San Francisco. One of the most popular blockchain games has been played the most so far in 2021.
A space mining and combat game called Alien Worlds often has over 500,000 active wallets per month. Splinterlands and Alien Worlds together drew more over a million UAWs in just one week.
Additionally, Binance Chain has joined. It was formerly wholly dependent on its own DeFi protocols. However, it currently supports numerous successful crypto-gaming protocols, including MOBOX and CryptoBlades.
Reasons For The Success Of Play-To-Earn games
P2E is a method of game monetization that lets both players and game producers trade in-game things for virtual currency. Blockchain technology is used in play-to-earn projects, which are very well-liked globally.
Use Of Blockchain
The in-game assets are given to the gamer as their property. Blockchain prohibits transactions involving players’ property without their consent since every in-game object that is bought is given a special ID.
A Chance To Earn
The “play to earn” concept enables players to make real money while having fun. In-game prizes are given to players. You can buy NFT things using in-game currency and vice versa. The player can sell a variety of items on bitcoin exchanges.
Because players can cooperate in these games to complete quests and tasks and distribute rewards among themselves, play-to-earn games have some of the most robust and active communities in the gaming world.
Rise In Diversity
P2E games are picking up steam, but they have already created a fiercely competitive market where each developer is compelled to find fresh approaches to draw gamers. This portends the arrival of a wave of intriguing concepts.
Play-to-Earn and the Metaverse
The metaverse is looming larger than the rush to play-to-earn, which is upending the gaming paradigm.
The idea of the metaverse was first introduced in Neal Stephenson’s science fiction book “Snow Crash,” and it gained popularity with Ernest Cline’s “Ready Player One.” In addition, the metaverse is a virtual world where people may interact, play games, exchange items, and socialize. It might eventually alter the way we create communities.
The Sandbox led all blockchain-based virtual worlds in Q3 trading volumes, which totaled over $56M. Similar to Minecraft, The Sandbox allows players to create experiences that can be bought with the in-game currency “SAND.” Important alliances between The Sandbox and well-known companies like Atari and Snoop Dogg have also been forged.
Somnium Space, CryptoVoxels, Treeverse, and Ember Sword are a few further well-known metaverse games available on the blockchain. It’s interesting to see how the decentralized metaverse is evolving into a P2E game-based virtual reality environment.
Play-to-Earn in Crypto Gaming: What the Future Holds
Play-to-earn gives players more control by giving them money dependent on how much time they spend playing. Something amazing might be in the works with around 2.5 billion gamers worldwide, cutting-edge blockchain technology, and the disruptive nature of P2E gaming.
A new generation of P2E games will be made possible by the millions of dollars that VCs are investing in the sector. The future is clearly promising, and numerous new micro-economies will undoubtedly emerge as a result.
However, novice investors may need to exercise caution. There is a ton of “vaporware” available as well. Buyers beware—these fraudulent procedures exist just to enrich their founders before they take off. If you are looking for a top notch White Label NFT Marketplace Development company then contact Suffescom Solutions.
You have the option of purchasing P2E games or creating your own. You must learn how to code in order to work as a blockchain developer and begin building your crypto-gaming empire.