Video games have long been seen as a testing ground for the application of new technologies. Whether it’s a home computer, smartphone, or virtual reality hardware product, the fun of gaming is often one of the most effective ways to get the public interested in new technology, and the same is true when it comes to blockchain and crypto assets.
In the past year or two, there has been a greater interest in blockchain-based games. A range of industry data suggests that such games will attract more usage and adoption this year, with P2E gaming and the financially incentivized decentralized app GameFi the most likely to be the dominant trends.
At the same time, some analysts also expect major game developers and publishers to enter blockchain games to some extent this year due to the huge appeal of NFT applications. The following are the views of some experts from inside and outside the industry on the development trend of blockchain games.
P2E drives continued growth in blockchain gaming
Dragos Dunica, co-founder and chief development officer of DappRadar, believes that gaming means a lot to the crypto industry. “Like NFTs that are currently leading in terms of transaction volume, gaming is the leading segment of the blockchain industry in terms of applications. For example, in the fourth quarter of last year, more than 50% of independent active wallets interacted with gaming Dapps. This means that despite the collapse of the crypto market over the same period, the gaming category has remained stable.”
Dunica explained that P2E (play-to-earn), a specific area of the crypto gaming industry, is the key to its growth. As the name suggests, the mode is where players are rewarded for playing a specific game, usually an NFT or native token, of which Axie Infinity is the most famous example.
“P2E has been a key driver of gaming’s growing popularity and is likely to continue. The top five P2E games – Alien Worlds, Splinterlands, Farmers World, Axie Infinity and Upland, retain users, A good indication that this trend will continue in the coming months,” he added.
Other relevant experts also agree that P2E is likely to retain its crown as the biggest blockchain gaming trend in 2022. Nigel Carlos, a spokesman for Zug, Switzerland-based Dacoco and publisher of Alien Worlds, believes: “P2E games will definitely dominate in 2022. These games give users purpose and meaning through economic incentives, not only attracting people to play games, but also It also enables users to collaborate, compete, strategize, and build strong relationships with each other.”
Analysts outside the crypto industry, however, are relatively cautious about assessing the future size of blockchain gaming. Michael Pachter, managing director of equity research at Wedbush Securities, believes that blockchain-based gaming isn’t enough to truly become a mature category.
“This is mainly because Axie Infinity is the only game that knows how to harness the power of blockchain and how to make games fun. Axie Infinity has several million daily active users, but 3.5 billion people play games around the world. , and nearly 400 million daily active users play all of their games on PC.”
Interoperability, Convergence and GameFi
In 2022, the interconnection and integration between blockchain games and other units in the crypto space may expand, after all, each unit wants to use other businesses to help itself grow.
“The interoperability of blockchain games and the use of NFTs is a trend we’re seeing in many games,” Nigel Carlos said. Play a huge role in blockchain games.”
Carlos also added that interoperability will be an important growth strategy for many games and can be used in efforts to attract other blockchain communities and liquidity.
Dragos Dunica also believes that more blockchain projects will seek to gamify their businesses in various ways. “Another factor to consider is the general trend of gamification, which will reframe other blockchain business categories. DeFi platforms are a good example, they have started to move to GameFi products, which will be more complex than pure DeFi It’s easier for the business to attract new users.”
DeFi Land is an example. It is a gamified DeFi platform running on the Solana blockchain. After receiving $4.1 million in seed financing, the public beta version was launched at the end of December last year, which may reflect the integration trend of financial games and gamified finance.
Large developers and publishers
Another trend that 2022 is likely to see will be the increasing involvement of mainstream developers and publishers in games with blockchain and NFT elements.
“Major game developers are starting to see the potential of blockchain and cryptocurrencies in gaming, especially after seeing the adoption of blockchain across multiple industries,” said Nigel Carlos.
According to him, while many have grown tired of saying “there is a long way to go,” in the near future, you will start to see some big companies getting involved in the blockchain space.
For mainstream game developers and publishers, the move to NFTs and cryptoassets could win new customer bases, while also providing existing users with exciting new products. The market has taken notice of these potentials, with Dragos Dunica noting that blockchain gaming has become a big business. “Venture capitalists poured $4 billion into the space last year, which means traditional games are less likely to miss out,” he said.
However, Dunica also believes that it may be difficult for established game developers to enter the nascent crypto gaming space for a variety of reasons. He said: “Companies such as Electronic Arts and Ubisoft, which openly support blockchain projects, face strong opposition from traditional gamers, and mainstream distrust of blockchain projects still exists in the market.” Of course, many crypto gamers are also Traditional game publishers and their more centralized models are wary.
Similarly, Michael Pachter said that while initial participation may be cautious for a while, most major companies will get involved.
“I expect all publishers to experiment in 2022, and investment is likely to be lower until the new business model is proven. Everyone seems to realize that in-game items can be tokenized and already have value, but everyone’s The real value of this model is that it is slow to understand that it enables players to trade NFTs,” he said.
Pachter believes that the current P2E model is too based on the sale of digital goods that cannot be sold after a player’s first purchase. “Publishers want to sell cars, weapons, football players to gamers, but worry that if gamers are allowed to resell items, the existence of a secondary market will limit publishers’ sales.”
Additionally, Pachter noted that by creating additional value for a given NFT, the risk of resale could classify certain games as gambling. “This is a serious problem for many games with in-game purchases, and I hope all publishers take the slow action before adopting tradable NFTs,” he said.
Will the heat last?
Given that the crypto market is going through some sort of slump or bearish turn, one can’t help but wonder if blockchain-based games like Axie Infinity, Sandbox, and Alien Worlds can stay hot?
While the jury is still out on whether specific games themselves will remain so popular, analysts agree that blockchain-based games will continue to grow in the medium to long term.
“As new games come out, there’s a good chance that interest will grow, and the thing to consider is whether the number of new games will grow faster than the number of players. Of course, as the market develops, early movers like Axie Infinity , may grow more slowly,” said Michael Pachter.
Likewise, Nigel Carlos believes that many cryptocurrency-based P2E games will incentivize gamers to keep playing. “These games offer the opportunity to experience success, mastery, and domination, and as users’ gaming skills improve, so do their confidence and ability. We’ve seen firsthand the network effects that users enjoy, not just providing users with reality Economic incentives for world utility, but also see the benefits of a community of players progressing together and learning strategies.”
Taken together, everything shows that despite the ups and downs of the market, blockchain-based games still have a bright future in 2022.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/blockchain-gaming-trends-p2e-gamefi-interoperability-and-convergence/
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