The popularity of NFT games still analyzes the ecology and business behind chain games

Axie Infinity fired the first shot of the NFT and GameFi frenzy this summer, and the chain game market has entered a frenetic development stage in the past few months. Although the overall popularity of the GameFi market has declined, NFT games such as Axie Infinity have achieved significant results recently, and the NFT market is still hot.

After Axie , there seems to be no second such popular NFT game on the market. But the challengers have actually been gearing up and coming, such as Illuvium, Guild of Guardians, Big Time, which will be launched next year, and Star Atlas and Aurory that are attracting attention.

In the wave of NFT, with the continuous blessing of capital and players, can chain games continue to be popular? What is the reason why blockchain games represented by Axie can continue to be popular? This article will analyze these issues one by one.

Chain games dominate the DeFi market

August 2021 is a record month for NFTs. The data proves that playing games to make money is the main promoter. According to the latest report from DappRaddar, DeFi dapps now account for approximately 18% of traffic, while games and NFTs each account for nearly 41%. Compared with May, NFTs and games together accounted for 45%, a huge increase in this number.

It can be seen that, compared with the decline in DeFi’s dominant position, we can see that blockchain games continue to continue the July trend of heating up, and people’s interest in chain games and NFTs continues to increase.

The popularity of NFT games still analyzes the ecology and business behind chain games

In the NFT game project, the largest source of traffic is still AxieInifinity. According to DappRadar data, the total transaction volume of AxieInfinity games last week exceeded US$2 billion. As of September 26, the current trading volume and the number of traders rank first in the NFTs list. Since the opening of Gamefi’s hot summer in July, AxieInifinity has become the well-deserved “king of chain games”. Initially, Axie games were only sought after by more and more people in the Philippines, but now it has spread all over the world. Countries such as Thailand, the United States, China, Brazil and other countries are also the countries with the highest click-through rates for the Axie Inifinity application.

The popularity of NFT games still analyzes the ecology and business behind chain games

The price of Axie’s native governance token AXS has also risen sharply this year, with a market value of over US$3.8 billion and a quote of US$65.5 at the time of writing.

If you want to say why Axie Infinity can continue to be popular, the most important thing is the innovation of its own “play to earn” model, and a relatively complete and continuously adjustable economic system, which ensures the game playability while maintaining a considerable basic game for players. income. In the recent update, Sky Mavis has greatly reduced the player’s SLP currency output in PVE. Players who want to earn tokens need to collect more powerful Axie to fight. They need more tokens and props, which can consume excess. The amount of currency.

Regardless of whether the number of players increases or decreases in the future, the Axie Infinity team can make adjustments in this way to maintain the currency supply and demand relationship in a more balanced state, so that players do not have to worry about the value of tokens falling all the way.

In addition, Axie Infinity will upgrade its combat system and launch a land system later this year or early 2022. Many players are looking forward to it.

Although Axie Infinity is already the most popular and successful blockchain game on the market, some challengers have already joined. Such as Aurory, Star Atlas, Guildof Guardians, Big Time, etc.

In addition to the innovation of the project itself, the rise of the chain game ecology is inseparable from the support of capital, the operation of the business and community behind it, and the development of the public chain. Next, we will analyze the major “pushing hands” behind chain games one by one.

Animoca Brands Capital Assistance

First of all, the fire of chain games cannot be separated from the fuel of capital. From the time point of view, Axie Infinity began to grow rapidly this summer after it announced its A round of financing. The blessing of capital has allowed more players to flock in, and more and more funds have poured into the GameFi track, forming a positive cycle and maintaining the popularity of chain games. According to the statistics of, as of July 30, the investment in the field of blockchain games this year has reached 1 billion US dollars, far exceeding the 72 million US dollars in 2020.

In the chain game market, a company called Animoca Brands can be seen everywhere, which can also be said to be the biggest capital booster of the blockchain game ecology.

Animoca Brands is a cross-platform application publisher and one of the leaders in the fields of digital entertainment, blockchain, gamification and artificial intelligence. Since 2018, Animoca Brands has been actively involved in blockchain and chain game projects. According to incomplete statistics, it has made more than 70 investments in the past 3 years. This includes the current “top stream” AxieInfinity, the well-known blockchain game The SandBox (a subsidiary), the leading NFT trading platform OpenSea, the game guild YGG, the racing game F1Delta Time, etc. Its partners include Axie Infinity’s development team Sky Mavis and CryptoKitties, and NBA Top Shot’s development team Dapper Labs. It can be seen that it has a large reach in the blockchain game ecology.

As for why Animoca Brands is so optimistic about the chain game market, the company’s founder and chairman Xiao Yi believes that the reason they are optimistic about this track is that chain games can truly be decentralized, and he believes that when blockchain technology becomes the foundation in the future The popularity of facilities and chain games will continue to refresh the public’s cognition.

With the capital blessings of companies such as Animoca Brands, chain games have also attracted more people in the blockchain industry to pay attention to and optimistic about chain games, such as billionaire investor Mark Cuban, Reddit co-founder Alexis Ohanian and so on. Their affirmation of blockchain games and the P2E model has added fire to the market.

“Operation” of YGG Game Guild

With the help of capital, players began to quickly enter the game to form a community. The rapid expansion of Axie Infinity is inseparable from the “operation” behind the YGG game guild. Without a game guild like YGG, there may not be the current Axie Infinity. Friends who know Axie know that although it can “Play to earn”, its biggest trouble for ordinary players is that the entrance fee is not low-it takes 3 Axie to enter, which means that the player has to spend at least The entrance fee is only a few tens of dollars and a few hundred dollars. This has blocked many players, especially in the Philippines, Vietnam and other countries, whose average monthly income level does not allow them to become gold players.

Yield Guild Games (YGG) is a Philippine blockchain game gold guild, which operates in the form of DAO and earns income by investing in “playing and earning” games. The guild is composed of tens of thousands of gamers and investors. YGG will invest in NFT assets of different games, such as Axie Infinity and Zed Run’s NFT, and lend these assets to gamers in the community for use by them. Play games to earn income.

YGG has deeply participated in and invested in popular games such as Axie Infinity, The Sandbox , F1 Delta Time, Zed Run, Star Atlas, Guild of Guardians, Iluvium and League of Kingdoms.

The popularity of NFT games still analyzes the ecology and business behind chain games

In order to accelerate the development of the “play while earning” model, the YGG Association also launched a “Scholarship” program (AxieScholarship) for Axie Infinity. For Scholars who apply for scholarships, the administrator will use 3 Axies as one. The team loaned it to them and can start earning SLP tokens in the game at almost zero cost. After a certain amount of tokens are accumulated, the manager will start the smart contract and share it with the profit ratio of 70% for playing, 20% for management, and 10% for YGG.

At present, YGG has formed a one-stop model of recruitment, training, and game lending to operate in the global player community, attracting many sponsors to join, and forming the NFT game “golden” industry chain. The number of YGG guilds also increased from less than 500 to over 30,000 within half a year.

In the future, if blockchain games can continue to grow, it is expected that YGG will guide even more community players to the new games of Metaverse. Who will be the next hot game? It is worth looking forward to.

The development of high-performance public chain and Layer 2

In addition to the two factors mentioned above, the maturity and development of public chains and side chains also provide a breeding ground for blockchain games and GameFi projects. High-performance public chains such as WAX, FLOW, OKExChain, Solana, Polygon , ImmutableX and Layer 2 solutions are the main choices for many games and NFT projects.

For example, games like Illuvium and Gods Unchained based on Immutable X, Zed Run and Aavegotchi on Polygon, Star Atlas and Aurory on Solana, CryptoGladiator (Gladiator) on OKExChain, The Land of Strife, FarmHero , Celestial.

With the support of infrastructure and ecological funds this year, OEC has formed an ecosystem dominated by DeFi, NFT, games, and infrastructure with the advantages of low-chain transaction costs and high transaction efficiency, attracting many popular games and NFTs. The addition of the project also brings players a gaming experience and considerable income while playing and earning.

And Axie Infinity directly developed the exclusive Ethereum sidechain Ronin for its games, which not only reduces transaction costs, but also avoids the blockage of the Ethereum network and lowers the barriers to entry for players. Since the launch of Ronin, the Axie Infinity community has grown rapidly. Axie’s vault revenue, DAU, Axies holders, monthly market turnover and Discord members have all seen significant growth.

The popularity of NFT games still analyzes the ecology and business behind chain games

Axie Infinity’s community growth source: SkyMavis

Sky Mavis co-founder and head of growth Jeff Zirlin said that Ronin was the spark that ignited Axie Infinity. “Ethereum will become a general settlement layer, but it is not a place where you can run high-performance applications.” Axie Infinity is a successful example of a powerful community product that completely migrates all content to a side chain or second-tier scaling solution.

With the recent acceleration of the implementation of Layer 2 projects, such as Arbitrum , Optimisim, etc., in the future, it will become an infrastructure that will carry more NFT, GameFi, and Metaverse projects, enabling the development of games and DeFi ecosystems.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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